There are different opinions at home and abroad about whether public welfare entrepreneurship should be profitable.

Below is my answer to you about the profit and distribution model of public welfare entrepreneurship. I hope it will be helpful to you! Some traditional aid agencies are skeptical about the operation of Yunus’ self-service social enterprise projects, and some even agree with Yunus’s

People will also ask, why should Yunus' projects make a profit? Yunus's answer is that many institutions that serve the poor often rely too much on donations and cannot achieve self-enrichment. This is like saying to a patient that he

They can breathe for 23 hours a day, and the government will provide them with oxygen for the rest of the time.

This means living by their mercy.

Once some organization forgets them, they are doomed.

?He also said that many aid projects only reduce poverty to a level that society can tolerate, but do not intend to eliminate it.

What is the business operation status of domestic public welfare entrepreneurship? Regarding the question of "the proportion of income derived from commercial activities", data from the "China Youth Public Welfare Entrepreneurship Survey Report" show that the income from commercial activities accounts for more than 50% of the total income of public welfare entrepreneurship.

Organizations accounted for 42%; public welfare entrepreneurial organizations whose income from commercial activities accounted for less than 50% of total income accounted for 44%.

Nearly half of the public welfare entrepreneurial organizations have commercial activity income of more than 50%. Public welfare entrepreneurial organizations obtain certain profits through market-oriented operation methods and adopt an entrepreneurial management method. Their income sources are clearly commercial.

?The boundaries between industries are becoming smaller and smaller, and more and newer cooperation models have emerged between business and public welfare.

Only by becoming better at integrating cross-border resources can public welfare organizations explore more sustainable models and leverage more stakeholders to further promote the development of social welfare undertakings.

Commercial operations and profits can free public welfare entrepreneurs from relying on donations and relieve the government of the burden of promoting the development of social welfare undertakings.

?This is the answer of Wang Fangyuan, the founder of the Tropic of Cancer Love Association.

As a junior at North China Electric Power University, he has been committed to building rural libraries in poor areas. In 2014, he was recommended by the Youth Henghao Public Welfare Entrepreneurship Action to participate in the Summer Davos Forum held in Tianjin.

The Philanthropic Entrepreneurship Research Center of Oxford University believes that philanthropic entrepreneurship is market-oriented.

?Market orientation? Indicates the performance-driven, competitive and forward-looking nature of public welfare entrepreneurship.

Although the biggest difference between public welfare entrepreneurship and commercial entrepreneurship is whether economic benefits or social benefits are given priority, in order to achieve sustainable development, public welfare entrepreneurship must operate in the manner of a commercial enterprise and obtain profits.

Public welfare entrepreneurship puts operating income in the first place. Profits and surplus are the guarantee for the development of organizations and public welfare undertakings, and are also an important support for the sustainable development of public welfare entrepreneurship.

Drucker, the father of modern management, also pointed out: Social enterprises will become an important force in future economic development, and this kind of organization has the potential to become a real growth sector in developed economic systems in the post-capitalist era.

? It can be seen that both participants and researchers who are actually engaged in public welfare entrepreneurship have affirmed the importance of profitability to a certain extent.

The economic value of public welfare entrepreneurship is reflected in the fact that public welfare entrepreneurship participates in market economic competition like commercial enterprises, forms its own business model, obtains financial support by selling products or services, and creates economic benefits.

The source of commercial activities in the income source of public welfare entrepreneurial organizations is the main way to "self-generate". Public welfare entrepreneurial organizations use market-oriented methods to provide products and services to obtain a certain amount of income and profits, thereby feeding back to public welfare undertakings, so that they can achieve rapid development.

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With profits in hand, should public welfare entrepreneurs distribute profits? Regarding whether profit distribution is clear? Among the respondents, 77 organizations, accounting for 53%, have clear profit distribution, while 57 organizations have not clear profit distribution.

, accounting for 40%, and the proportion of clear profit distribution accounts for more than half, indicating that most charity entrepreneurs are still aware of the importance of economic benefits and profits, and have reached a basic agreement with internal members of the organization on the issue of profit distribution.

*knowledge.

Here comes a new question, how should profits be distributed? Among the respondents who clearly stated profit distribution, the proportion of public welfare entrepreneurial organizations that did not distribute profits reached 27%, and the proportion of public welfare entrepreneurial organizations with a profit distribution ratio of 0-50% accounted for 51%.

%, and 8% of public welfare entrepreneurial organizations have a profit distribution ratio greater than 50%.

The survey results show that nearly 80% of public welfare entrepreneurial organizations do not pay dividends or only use a small part of their profits to pay dividends, and most of the funds are used for the reproduction and improvement of products and services.

For example, Canyou Group participated in the survey, 1/3 of the company's profits are retained in the company for further development, 1/3 is given to shareholders (mainly foundations), and 1/3 is given to employees as salary costs.

Some scholars believe that public welfare entrepreneurship cannot distribute dividends. Dividends are the profit distribution model of industrial and commercial enterprises. Once profits are distributed, shareholders and commercial capital are likely to be profit-seeking when they re-enter, and the nature of the public welfare entrepreneurial organization may change.