The Ressarch On The Factors Affected To Development Of Social Enterprise In China

In traditional, modern society consists of market department, government and third department. The three parts of society have clearly boundary, with dynamic progression of society and economy, the third department and public department begin to induce the operation of business. Then social enterprises are emerging in large numbers.The model of social enterprise has a long history, but it is a short time for public to know. The starting of social enterprise based on profound background of politic and economy. The70s of last century, American and welfare states in Europe suffered economic recession, of which the government had to reduce budget to cope with fiscal crisis so that the governments were not in their position to maintain the previous level of welfare. At the same time, the reduction of budget of government has brought finance difficulty to non-government organizations. At the same time, some organizations such as foundation and institution give legal consultation arose to support the social enterprises.There are many authors who have proffered definitions of social enterprise. The focus of scholars from various countries is different. The scholars in Europe focus on the whereabouts of profits, whereas the ones from American argue that social purpose is the most important character of social enterprise. Alter has summarized the main attributions of social enterprise as follow:Enterprise Orientation-they are directly involved in producing goods or providing services to a market; Social Aims-they have explicit social and/or environmental aims such as job creation, training or the provision of local services; Social Ownership-Many social enterprises are also characterized by their social ownership. They are autonomous organizations whose governance and ownership structures are normally based on participation by stakeholder groups (eg employees, users, clients, local community groups and social investors) or by trustees or directors who control the enterprise on behalf of a wider group of stakeholders. Social enterprises also are classified according to various standards. This paper will adopt Alter’s classification, which base on the level of integration between social programs and business activities.(1) Embedded Social Enterprises:Social programs and business activities are one and the same. Nonprofits create Embedded Social Enterprises expressly for programmatic purposes.(2) Integrated Social Enterprises:Social programs overlap with business activities, often sharing costs and assets. Organizations create integrated social enterprises as a funding mechanism to support the nonprofit’s operations and mission activities.(3) External Social Enterprises:Social programs are distinct from business activities. Nonprofits create external social enterprises to fund their social services and/or operating costs.The study on social entrepreneurship can be dated back to one hundred years ago. In the20th century, the economist most closely associated with the term was Joseph Schumpeter. He described entrepreneurs as the innovators who drive the creative-destructive process of capitalism. He says,"this defines entrepreneur and entrepreneurship the entrepreneur always searches for change, responds to it, and exploits it as an opportunity." The notion of "opportunity" has come to be central to many current definitions of entrepreneurship. It is the way today’s management theorists. Combined the ideas of many scholars, Dees(1998) defined social entrepreneur as people who play the role of change agents in the social sector, by Adopting a mission to create and sustain social value (not just private value), recognizing and relentlessly pursuing new opportunities to serve that mission, engaging in a process of continuous innovation, adaptation, and learning, Acting boldly without being limited by resources currently in hand, and Exhibiting heightened accountability to the constituencies served and for the outcomes created.This paper analyzed the process of a social enterprise, from idea to establishment, then study the problems and difficulties during the process. Some conclusions have been reached to support the development of social enterprise in China:create a culture of social enterprise, foster social entrepreneurs; building the platform, actively support the development of social enterprises; introduce relevant laws and policies.