Research On The Transformation From China's Public Welfare Institutions To Social Enterprise

With the further deepening of China's reform of public institutions,public welfare institutions as the only type remain in the category of public institutions.For now the reform of public welfare institutions is still facing many difficulties and the progress is slow.At this time,social enterprises walk into the public view of the world for its unique way of public services supplying,which provides a new perspective and direction of reform and development for public welfare institutions in China.The first chapter of this paper introduces the background and significance of this topic,as well as the research status quo both at home and abroad.The second chapter reviews the reform process over the last decades of public welfare institutions and noted that lots of problems still existing including bloated organizational structure and staff and the heavy financial burdens;no separation between the government work and the institution work and difficult to realize de-administration;path dependence on the traditional institution management idea and system;lack of substantive participation for social governance body,etc.which seriously hindered the reform and development of public welfare institutions.Chapter Three gave an introduction on social enterprise based on the above problems.The paper clarified the definition of social enterprise,confirmed the scope of public welfare institutions which could transform to social enterprises and explored the compatibility between public welfare institutions and social enterprises from two aspects of theoretical foundation and driving forces in reality.The study founded public welfare institutions of first category could not transform to social enterprise due to the particularity of public product or service,and public welfare institutions of second category met the requirements of operation of social enterprise,so could transform to social enterprises.Chapter Four chose public hospitals as a typical representative of public welfare institutions and analyzed the development situation of public hospitals on the basis of failure of marketizationof public hospitals in Suqian,Jiangsu province.Then discussed the necessity of public hospitals transforming to social enterprises.Meanwhile the paper selected Shenzhen hospital of Hong Kong University as a typical case of social enterprises to explore the specific path transformation from public welfare institution to social enterprise.The fifth chapter points out the risks and challenges in the process of the transformation from public welfare institutions to social enterprises may face,including social identity hasn't been established and it's difficult to impulse further development;no right legislation system and lack of institutional guarantee in practical operation;resistance from personnel shunt and stakeholders;pressure from the gain of finance and easy to deviate from the direction of public welfare,etc.and risk avoidance measures were proposed from the law,policy,prestige and image,supervision and mechanism for correcting errors.Finally,it was concluded that the public welfare institutions need to be transformed into social enterprises and the applicable path of transformation is the combination of government support,commercial operation and public welfare objectives.