Operating Tactics And Realization Of Social Enterprise Dual Goals

During the period of poverty alleviation,the government's advocacy from the top to bottom and the nature of social intervention in public governance is mutually compatible.With the encouragement of government departments,more and more social enterprises and social organizations are participating in the governance of poverty in China,among which there are no shortages of public welfare microfinance projects that are aimed at rural areas and provide unsecured loans for farmers.In order to provide more extensive and sustained credit funds for rural areas,most of public welfare credit projects try to solve the problem of insufficient supply of credit principal.However,in the process of pursuing the goals of social welfare and sustainable economic,many credit projects"attend to one thing and lose sight of another":either they have not been reached the goals of social charity and microfinance institutions face the major challenges which are"elitist capture" and "fund spillover",or unable to achieve economic sustainability goals,and the size and coverage of organizations are continuously shrinking.The CFPA Micro-credit Project is a successful case.It has been found that organizational behavior is closely related to the external environment by research.The external environment the organization faces determines organizational behavior,and organizational behavior is crucial to achieving organizational goals.In the same external environment,different organizations make different behavioral responses.While CFPA Micro-credit Project can achieve organizational goals,it is differentiated organizational behavior responses that has led to the failure of most social organizations.Specifically,microfinance projects that provide credit funds for low-income groups in rural areas are faced with financing difficulties caused by relevant policies restriction access to microfinance projects,and credit objects lack of mortgages and the imperfection of social credit system lead to high credit risk dilemma.Under the above two mentioned constraints,commercial credit institutions prefer to select groups with lower credit risk as lending objects to avoid their economic loss;When the majority of microfinance belonging to non-governmental organizations are striving for the government's funds to ease the shortage of funds dilemma,they are more or less disrupted by government departments.Finally,these behavioral choices deviate from the original credit goals,the goals of social welfare and sustainable development appear to be mutually exclusive.CFPA Micro-credit Project is on the contrary.In the same environment,CFPA Micro-credit Project strives to achieve the goals of social welfare and the independence of project operations,at the same time,it maintaining economic sustainability.This type of behavior of CFPA Micro-credit Project has spawned its unique operation method—Society drives the Market.It is this kind of operating tactics that makes seemingly contradictory social charity goals and economical sustainable goals compatible and mutually beneficial.