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Yeah, that’s exactly what I meant.
In my company, for example, we are encouraged to contribute bugfixes/features that we need to FOSS projects that we use. E.g. we find a bug in Angular, we are encouraged to fix it and send it upstream.
But we are forbidden from making anything open source that we’d want to sell.
But you are also right that also private people have their limits when they contribute to a FOSS project, as evidenced by the many, many forks of FOSS software when the original project changes in a way the contributors didn’t like (looking at you, OpenOffice. Or at any Debian-like OS)