Yang Xinping
Wuliqiao Sub-District Office
Huangpu District
Shanghai, 25 Feb, 2016
First
Second
• Profile of Social
Enterprise (SE)
• State of Social Enterprise
in UK and China
Third
• Experience of Social
Enterprise in UK
Forth
• Enlightenment to China
UK - the nation being well governed.
Smart and successful experience:
The mature civil society
The advanced government governance
The powerful third sector
The numerous charity and voluntary
and community organizations (VCO)
The developed social enterprises
(SE), etc.
In my opinion, the SE will be
booming in the near future in
China.
•The Profile of
First Social
Enterprise (SE)
The term “social enterprise”having been first coined by Freer
Spreckley in 1978 in UK.
Bill Drayton, founder of Ashoka,
first began using the term “social
entrepreneur” in the 1970s.
In 2006, Professor Muhammad Yunus of
Bangladesh became the first social
entrepreneur to receive the Nobel
Peace Prize for the Grameen Bank’s
efforts to alleviate poverty through
microcredit.
Concept
The definition by the Department of Trade
and Industry (DTI) in UK (2002) was
generally accepted.
Concept
“a social enterprise is a business
with primarily social objectives whose
surpluses are principally reinvested
for that purpose in the business or in
the community, rather than being
driven by the need to maximize profit
for shareholders and owners”.
Concept
Social and environmental objectives of SE
% of social enterprise objectives
Supporting vulnerable people
Improving health and well-being
8%
33%
36%
Improving a particular community
65%
Creating employment opportunities
36%
65%
45%
64%
48%
59%
60%
Addressing social exclusion
Supporting other social enterprises and third
sector organisations
Promoting education and literacy
Protecting the environment/fair trade
Supporting vulnerable children and young
people
Addressing financial exclusion
Providing affordable housing
State of SE in
UK
The roots of SE reach back to the cooperative movement and the Rochdale
Pioneers of 1844.
State of SE in
UK
SE are the important part of the third sector and
play a key role in the current Britain society.
The Third
Sector
Social
Enterprises
Voluntary and
Community
Organizations
Associations
Other
Organizations
Self-help
Groups
Charity
Organizations
Community
Groups
Mutuals
Others Goups
Cooperatives
State of SE in
UK
Profile of social enterprises in the UK
974
1000
900
800
700
600
500
400
300
200
100
0
475
2005
2012
55
70
Numbers of social
enterprises（thousand）
Numbers of employees（
thousand）
State of SE in
UK
Profile of social enterprises in the UK
54.9
60
50
40
27
18.50
30
20
8.4
10
0
Annual turnover（
billions of pounds）
Gross value added（
billions of pounds）
2005
2012
State of SE in
UK
over 11 thousand Community Interest Companies
(CICs) have been founded up to now.
Number of CICs
12000
11040
10000
9177
8000
7670
6000
6392
4905
4000
2653
2000
208
845
3572
1621
0
2005-06
2005-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
2014-15
State of SE in
UK
The breakdown of organizational structures of SEs (%)
Categories
Company Limited by Guarantee (CLG)
2015
2013
2011 2009
45
51
54
59
Community Interest Company (CIC)
20
17
10
17
Company Limited by Shares (CLS)
16
12
12
7
Industrial and Provident Society (IPS)
9
19
24
37
Sole proprietorship
6
2
Partnership
3
2
Limited Company
1
1
Limited Liability Partnership（LLP）
1
Public Limited Company（PLC）
＜0.5
1
Other/Don’t know/Not provided
5
11
SE in China
The term “social enterprise” is still unfamiliar
to most in China.
It was first introduced in 2004
The first monograph 《How to
Change the World》
was published in 2006.
SE in China
In 2006, China’s first self-described SE SHOKAY established in Tibet.
The 2008 Wenchuan Earthquake in Sichuan
caused the flourishing of SEs in China.
Characteristics in China
A significant proportion of SEs transitioned
from NGOs.
No clear profit distribution model.
Most of SEs do not benefit from taxexemption.
Comparison between
China’s SEs and UK’s
State of SE governance
91%
89%
76%
100%
80%
60%
54%
46%
40%
22%
China
UK
UK
20%
China
0%
Having formal
board of
director
measuring
social impact
achieving social
objectives
Comparison between
China’s SEs and UK’s
Annual turnover of SE in China and UK
40%
37%
33%
35%
30%
27%
25%
19%
20%
15%
15%
13%
16%
16%
11%
10%
4%
5%
0%
0-10
thousand￡
10-50
thousand￡
50-100
thousand￡
0.1-1
million￡
≥1
million￡
China
UK
Comparison between
China’s SEs and UK’s
The length of SE in China and UK
60%
50%
40%
51%
31%
30%
35%
29%
20%
10%
19%
14%
6%
China
UK
15%
0%
≤ 1 year
1-3years
4-5years
≥ 6 years
Comparison between
China’s SEs and UK’s
The resource of primary Start-up funding
77%
80%
70%
60%
50%
44%
38%
40%
China
UK
30%
20%
11%
10%
16%
8%
0%
Government and
foundations
Loan and finance Family and friends
Comparison between
China’s SEs and UK’s
State of profit of SE in China and UK
50%
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
42%
33%
26%
25%
20%
Made a profit
Broke even
Made a loss
China
UK
Comparison between
China’s SEs and UK’s
Age of founders
80%
60%
69%
60%
30%
40%
26%
10%
20%
5%
0%
≤ 44 years old
China
UK
UK
China
45-65 years old
≥ 66 years old
Comparison between
China’s SEs and UK’s
Gender of workforce in SE
80%
70%
58%60%
60%
50%
70%
64%
42%40%
36%
30%
40%
30%
20%
10%
0%
Female leader
Male leader
Female
employees
Male
employees
China
UK
Innovative Practices in
China
Canyou Group – three-in-one developing
model with charity foundation, NPO and SE.
Canyou Practice in China
Development of Canyou Group
Year
1999
2015
staff
5
3700
company
1
32 subsidiary companies
1 charity foundation,
foundation
0
funding
0 RMB
＞6 million RMB
Board of Director
no
Formal
Society impact
no
No 1 SE in China
Geographic scope 1 community
8 non-profit organizations
11 Provinces
Canyou Practice in China
Three-in-one operating model
Canyou Practice in China
China Social Innovation Award
Only one China’s Social Enterprise
Awarded by Social Enterprise UK
Innovative Practices in
China
Aba Qiang Embroidery (“One Needle One
Thread”) Support Program – smart model for
“Poverty Alleviation” in remote rural areas.
Qiang Embroidery in China
Difficulty for the developing and supporting road
Qiang Embroidery in China
Remote rural women supported by the program
Walking to the villages for
more than 3 hours
Home is the workplace
Qiang Embroidery in China
The development of Qiang Embroidery
Year
2008
2013
staff
10
＞ 8000
Retail stores
Proportion of income
from sales
Annual turnover
0
10 in 6 cities including
Taibei
0
＞ 90%
0
＞ 10 million RMB
Qiang Embroidery in China
Areas supported by the program
Qiang Embroidery in China
Interaction Relations between main parts
participating in Aba Qiang Embroidery Support
Program
Innovative Practices in
China
Buy42.com (Shan tao web) – new internet+
mixed model supporting charity and
vulnerable people employment.
Shantao in China
http://www.buy42.com
Shantao in China
Transparency report
showing social impact
Shantao in China
In 2015, it realized public funds of more than
0.87 million RMB,
Sales revenue exceeding 1.29 million RMB,
24,585 public shareholders.
•The Experience
Third of Social
Enterprise (SE)
in UK
Experience of SE in
UK
Establishing the specialized administrative
agencies.
Social Enterprise Unit in 2001,
Office of The Regulator of Community
Interest Companies in 2004,
Office of The Third Sector in 2005,
Office for Civil Society in 2010.
Experience of SE in
UK
Publishing the relevant law or criterion to
promote the development of SEs.
《Companies (Audit, Investigations and
Community Enterprise) Act》 established a
new type of companyCommunity Interest
Company (CIC) in
2004
Experience of SE in
UK
《Public Services（Social Value）Act》 in
2012
required public authorities to
have regard to economic, social
and environmental well-being
which offered more
opportunities to the third
sector.
Experience of SE in
UK
Introducing the development plan.
《Social Enterprise： A Strategy to Success》
in 2002
《Social Enterprise Action Plan： Scaling
New Heights》 in 2006
《Big Society Project》
in 2010
Experience of SE in
UK
Tax relief policy was dramatically benefit to
SE.
“Enterprise Investment Scheme”
“Community Investment Tax Relief”
Experience of SE in
UK
Mutual help from the mainstream business
and other units such as charity and voluntary
and community organizations
•Enlightenment of
Forth Social
Enterprise (SE)
to China
Enlightenment to China
foster SE culture
clearly put forward the
concept for local SE
Enlightenment to China
Promote the formulation of laws and
regulation systems for SEs
Improve the accreditation system for SEs.
Enlightenment to China
Government subsidies and preferential policies
More Tax relief similar to UK
More funding and procurement opportunities to
the third sector organizations
Enlightenment to China
More Seed funding from public and private
foundations
Enlightenment to China
Universities encourage students to join the
social enterprise
Adjust the curriculum to meet the need of the
market.
Enlightenment to China
SE should learn from international smart case
facilitate cross-sector partnerships with
mainstream business system.
Partner with other social organizations
Enlightenment to China
foster a lot of social entrepreneurs in all of social
fields in order to meet the demands from SEs in the
immediate future.