Xu Yongguang: do not allocate profits want to do public outrage

Updated: 2017-8-12 15:31:00  Views: 49
[Editor's note]
Xu Yongguang the name, public circle outside the people rarely know, but talking about 'hope project', but few people do not know, and Xu Yongguang is China 'hope project' pioneer .2010 years on August 10, Xu Yongguang With the Hongyi culture planning, CITIC Publishing House published a new book << public right to the right business left >> held a conference in Beijing at the meeting, Xu Yongguang elaborated his own social enterprises in China's development process of view, He believes that 'social enterprise is an innovative business, to solve social problems into business, while doing good, while making money.' But in his view, with the social business model to do big public welfare, do not allocate profits what are the game. Yongguang think, only to solve social problems as a profitable opportunity, social problems can be the most effective solution. The following is the full text of Xu Yongguang speech:
In fact, I am a very low-key people, do three years of public welfare, probably only public circle of people know me, outsiders are basically do not know who I am. Recently, by the Hongyi culture company planning, CITIC Publishing published my book << Public interest to the right business to the left >> this book. This book is mainly talking about what is a social enterprise, but also talked about the public change and innovation.
Social enterprise is an innovative business, it is to solve social problems into the business, while doing good, while making money.This model is also in the charity of the centuries of charity after the reflection of the conclusions of our so many charitable inputs, In order to stimulate the enthusiasm of public welfare, it should be done by commercial means to do public welfare.
Whether it is Europe and the United States, Japan, Korea, or Taiwan, Hong Kong, or poor India, Bangladesh, African countries, those in addition to social enterprises outside of China, basically have a direction, they are mainly for the bottom of the community services, Or to serve the marginal population, but China's social enterprise is for most people to serve, it can be said that everyone in China needs social enterprises, which is a very big difference.
Social enterprises are to solve social problems, which is common, the mission first, make money second. Chinese social enterprises mainly cover the two areas, the first is the lack of government public service supply education, medical care, pension, community services, The education of disabled children, the employment of persons with disabilities, etc. For example, the demand for pension is 100, the supply is only 10, then how to do it? This will mobilize social investment into this area.Therefore, some of our social enterprises On the government to do things.His social and public nature is very strong.Why the motorbike is the social sector in the field of transportation, because he let us travel more convenient and more environmentally friendly.Therefore, one of China's social enterprises A relatively large part of the area in the public service supply shortage.
There are some areas of social problems with Chinese characteristics, such as environmental issues, food safety issues, rural children left behind, these areas are the focus of social business areas for us to eat eggs, rice, oil, drinking is a problem , The rich can not be spared, you have to the United States, Britain, Japan, Russia, the restaurant to eat, that those restaurants do not waste oil, poison rice, food is environmentally friendly, this business in China has become a 'social enterprise ', It solved our pain points, is everyone in our society needs.
In fact, these two areas need to invest tens of thousands of dollars to make up for the lack of public services and to solve social problems.The CPC Central Committee put forward the supply side of structural reform, is to expand the effective supply, fill short board, Our social enterprise is in full compliance with the five development ideas put forward by the Party Central Committee: innovation, coordination, green, open and shared.I understand the current tax policy of the country, and one of the foundations is almost coincident with our social enterprises. , Environmental protection, education, medical care, pension and so on.
In addition, on the social enterprise I invented a target map, completely hitting the social pain point of the enterprise is ten ring enterprises, that is, social enterprises, the more close to the ten ring, the enterprise from the social enterprise closer. Last year, 'China Social Enterprise Award' Is to use my standard as a Chinese standard, the target map as a criterion to filter our social business areas need such a large capital investment, which has been entangled with a problem we have been for many years, that is, social enterprises in the end can not be allocated I want to say that you can not allocate profits is very troublesome, you are God, we are people.If the social enterprises can not allocate profits, or limit the distribution of profits, then we do not talk about the development.
China has actually had 300,000 private non-enterprise units is a social enterprise.Hong Ministry of Civil Affairs has just announced that China's private non-enterprise units is 360,000, I looked at the list, which engaged in education, pension, medical, Community services, business services and other areas of the enterprise more than 300,000 of the three hundred thousand enterprises in the situation I am very clear, basically or most of the private investment, and these private non-enterprise units are almost behind a The situation is clear to the government, and they are the non - plus companies in which the two - wheel drive.
I have been questioning, and now public welfare and business ambiguous practice is a problem .A few years ago, I have been criticized the four non-civil system of the crime: closing the dog (money came into a public, and forced to prostitution, to curb investment In 2015, ten ministries on the encouragement of pension investment issued a document, clearly promote the private non-enterprise model to develop the Pension business, and allow related party transactions, documents as long as the relevant party transactions to accept government supervision on the line because they know that public welfare is not big, not so much money. Pension needs tens of thousands of dollars of investment, public welfare model does not work how to do So that the business model, but the commercial operation they want to bring public welfare, so just a public interest, a business one, two together to do, two-wheel drive put the problem solved.I think the government is still very open, the model Want to do so, this is the Chinese characteristics of the social enterprise development path, the people non-Canadian company's development model.Therefore, from the macro point of view, bigger public profit distribution is necessary.
I introduced thousands of schools in Xiamen, and ten years ago, they had trained 80,000 migrant workers as white-collar workers, and when they were found to be very good, they were found by our experts to help them design social enterprises Mode, declared no distribution of profits. This decade it was kidnapped by moral, moral trial put it into the black hole, struggling. The book is the most telling the case, from this level do not allocate profits is dead end. The study of British social enterprises found that the British social enterprises to limit the distribution of profits, only 35%, investment is also afraid, and then entered the funding black hole. Two years ago, the British modified Law, canceled 35% dividend limit.
If the social enterprises do not allocate profits, they can only do charity model.If you do business, regardless of profit door did not. I seven years ago in Hong Kong thrown my opinion, the results of the Hong Kong community forum quarreled, they say no , Now can not say that.I understand business, do not shoot my head, no matter from the macro, meso, micro point of view, do not allocate profits to do the public do not play.
In the historical development point of view, all countries in the development of this standard, are ignored there is a business called public enterprises.China in the past there are some competitive public small businesses, they now disappear, do not allocate profits of social enterprises than public ownership Small business is still bad, more no competitiveness. Foreign no such experience, we have.Therefore, we have a natural immunity, one said that do not know that they do not understand, because they have not experienced, regardless of developed countries, or Bangladesh has not experienced public ownership, so there is no immunity.
I would like to talk about the last point, is someone saying that I say 'public right to the right' is harmful to public welfare or save the public? I said, I absolutely will not harm, 'public right to the right' to enhance the allocation of 100 million resources, Billion will become larger, 'business to the left' will stimulate the trillion social investment, or even tens of trillion, so that will be effective and sustainable to solve the social problems we face.As Drucker said, Solve social problems as a profitable opportunity, social problems can finally be resolved.
Recently, a founder of a public welfare brand asked me how to transition to a social enterprise, and I clearly told them that it was one thing to turn from a public innovation to a social enterprise, which was one of the most important aspects of technological innovation, We must establish an innovation-centric positioning .According to this logic, when the transition to the enterprise shareholding, equity design should be the founder and team as the center, to design the most conducive to business development, staff incentives and attract investment mechanism, the new Registered companies are best to private ownership, the shareholders decided to how much profit or equity donated to public welfare undertakings, and so the business bigger, and then return to public interest on the line. Earned money and then feedback public interest, which is a scientific society Business model.
(The presentation is based on live recording and shorthand provided by the organizer

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Traditional Chinese: 徐永光:不分配利潤想把公益做大沒戲