1141. Dilemmas Confronting Social Entrepreneurs: Care Homes for Elderly People in Chinese Cities
- Author:
- Linda Wong and Jun Tang
- Publication Date:
- 12-2006
- Content Type:
- Journal Article
- Institution:
- University of British Columbia
- Abstract:
- In socialist China, rapid aging, severe shortage of public provisions for frail elders, and the state's admitted failure to meet vast unmet needs have led the state to promote the use of non-profits as a key peg of welfare policy for the elderly. To this end, the Chinese government passed the Provisional Regulation on the Registration and Management of Civilian-run Non-enterprise Units in 1998 to set out the legal framework. Using tax exemption and preferential utility charges as baits, the 1998 decree encourages the birth of nonprofits to meet the shortfall in social services. The sharp rise in nonprofit organizations (NPOs) after 1998 suggests the policy is achieving its intended effect. However, the insistence on self-sufficiency and ban on profit taking means that such agencies have to operate as social enterprises, combining their social mission with an entrepreneurial mode of management as they rely on fee charges as the primary income source. The paper begins by examining the policy and demographic contexts for old age care and the concepts of NPOs, social enterprises and social entrepreneurship. It then presents research findings on the agency profiles and operational experiences of 137 non-state care homes in three Chinese cities. This is followed by an analysis of the motives for social entrepreneurship, namely family circumstances, personal attributes, social commitment, and entrepreneurial drive. The final part discusses the link between the nonprofit policy, NPO attributes and social entrepreneurship. It is argued that it is the peculiarity of the existing policy that attracted a very special group of social investors into the old age care business.
- Topic:
- Government
- Political Geography:
- China