A Study On The Commercial Behavior Of Private Non - Enterprise Units And Its Result

With the establishment and development of the socialist market economic system, the government has gradually got rid of the role of "big government" and returned the functions which once undertook by government to market and society. Thus, the non-profit organization arises at the historic moment. Private non-enterprise units as one of non-profit organizations, play an important role in making up for the role of government, promote social fairness and stability, and meet the plural demands of the public. However, in the process of its development, it suffered funding difficulties, the limitation of government policy, the impropriety of motivation, bad management and so on. Therefore, to be independent, more and more Private non-enterprise units are turning their way to the business world.In this paper, I make the combination of theoretical and empirical analysis, and take the comprehensive and systematic study in depth for the commercial trend of private non-enterprise units in China. Also take the Amity bakery for example. Amity bakery began commercial operation because of facing a shortage of funds, students’ employment, expanding services and lack of sustainable security. Amity bakery turned into a social enterprise successfully by enterprise-style management, selling goods and cooperating with other enterprises. The commercial trend of private non-enterprise units is a double-edged sword. On the one hand, commercial activities can widen the organization source of funds, improve the efficiency and independence, and provide new products and services for vulnerable populations. On the other hand, commercial activities will damage the image and credibility of the organizations, and produce the problems such as target substitution and corruption. The thesis also puts forward some suggestions for the problems and risks. First of all, the government should improve the policy system. Secondly, private non-enterprise units should optimize internal governance structure and set up the profit bottom line. Thirdly, the social should set up multiple social supervision system and create a good social environment.