What is the profitability and distribution model of public interest entrepreneurship

Whether public benefit entrepreneurship should be profitable or not, there are different voices at home and abroad. Here is my answer to how the profit and distribution model of public benefit entrepreneurship, I hope it will help you!

Some traditional aid organizations are skeptical of Yunus's self-help approach to running social enterprise projects, and even some who agree with Yunus ask why Yunus's projects should even bother to make a profit. Yunus' answer is that many organizations serving the poor are often too dependent on donations to achieve self-enrichment,? This is like telling a sick person that they can breathe for 23 hours a day and the government will supply them with oxygen for the rest of the day. It means having to live on their mercy. Once some agency forgets about them, they are dead.? He added that many aid programs are simply about reducing poverty to a socially tolerable level, not about eradicating it.

What about the state of business operations of philanthropic entrepreneurship in the country? About? What is the proportion of income derived from commercial activities? Nearly half of the public welfare entrepreneurial organizations with more than 50% of the income from commercial activities, public welfare entrepreneurial organizations to market-oriented means of operation to obtain a certain amount of profit, the use of entrepreneurial business methods, the source of its income has a clear commercial nature.

? The boundaries between industries have become smaller and smaller, and more and newer modes of cooperation between business and public welfare have emerged. Only by integrating cross-border resources more skillfully can public welfare organizations explore a more sustainable model and pry more stakeholders to further promote the development of social welfare. Commercialized operation and profitability can free public welfare entrepreneurs from the reliance on donations and relieve the government of the heavy burden of promoting social welfare development. This is the answer of Wang Fangyuan, the initiator of the Tropic of Cancer Love Association. He is a junior at North China Electric Power University, has been committed to building rural libraries in poor areas, and in 2014 was recommended by the Youth HengHao Public Welfare Entrepreneurship Action to participate in the Summer Davos Forum held in Tianjin.

The Center for the Study of Public Interest Entrepreneurship at the University of Oxford believes that public interest entrepreneurship is market-oriented. The market-oriented nature? suggests that public interest entrepreneurship is performance-driven, competitive and forward-looking. Although the biggest difference between public good entrepreneurship and commercial entrepreneurship is whether economic or social benefits are prioritized, public good entrepreneurship must operate and make profits in the same way as a commercial enterprise in order to be sustainable. The first thing you need to do is to make sure that your business is operating at a high level of profitability. Profit and surplus is the guarantee for the development of the organization and the cause of the public good, and it is also an important support for the sustainable development of the public interest entrepreneurship.

Drucker, the father of modern management, also pointed out: ?

It can be seen that both participants and researchers who are actually engaged in pro bono entrepreneurship have affirmed the importance of profitability to some extent. The economic value of public interest entrepreneurship is reflected in the fact that public interest entrepreneurship participates in the market economy as much as commercial enterprises do, forms its own business model, and creates economic benefits by obtaining financial support through the sale of products or services. The source of commercial activities in the source of income of public welfare entrepreneurship organizations is ? Self-supporting? The main way, the public welfare entrepreneurial organizations use the market-oriented approach to provide products and services to obtain a certain amount of income and profit, so as to feed the public welfare cause, in order to make its long-term development.

With profitability, do entrepreneurs in the public interest want to distribute their profits? About? Is it clear that the profit distribution?

The new question is, how should profits be distributed? Among the respondents with clear profit distribution, the proportion of public interest entrepreneurship organizations without profit distribution reached 27%, 51% of public interest entrepreneurship organizations with profit distribution ratio of 0-50%, and 8% of public interest entrepreneurship organizations with profit distribution ratio of more than 50%. The survey results show that nearly 80% of the public welfare entrepreneurship organizations do not distribute profits or only a small portion of their profits is used for dividend distribution, and most of the funds are still used for the reproduction and enhancement of products and services. For example, for the Disabled Friends Group, which participated in the research, 1/3 of the company's profit stays with the company for further development, 1/3 goes to shareholders (the foundation mainly), and 1/3 goes to employees as salary costs.

Some scholars believe that public welfare entrepreneurship can not be dividends, dividends are the mode of distribution of benefits of business enterprises, once the profit after the dividend, shareholders and commercial capital re-entry is likely to be profit-seeking state, the nature of public welfare entrepreneurial organizations may change.