The Capital Municipal Social Construction Leading Group recently reviewed and approved the Opinions on Promoting the Development of Social Enterprises (the Opinions), according to which, more than 300 social enterprises will be identified by the end of the 14th Five-Year Plan (2021-2025) in Beijing.
The Opinions highlighted the principles of the market economy, being demand-oriented, and focusing precisely on the specific needs of communities, including but not limited to elderly care and disability assistance, housekeeping services, environmental protection, and emergency management.
A specialized government administration system, as well as a package of relevant policies will be established to promote the achievement of this goal.
To be recognized as a social enterprise, the company must meet the following conditions:
- The company should prioritize the pursuit of social benefits, clearly focus on specific social issues, and write them into the company’s articles of association or related materials;
- The company should have good social credit, and the main person in charge of the company should have no record of serious dishonesty in the past three years;
- The company should have a certain number of full-time salaried staff, a sound financial system, independent accounting, and scientific and standardized internal management;
- The company should have measurable evidence showing the social value it creates, and provide products or services in the field of people’s livelihood;
- The company should have a clear business model that is financially sustainable and profitable;
- The company should donate a certain percentage of its after-tax profits to charity or invest in its own development.
Recognized social enterprises will receive financial support such as loan guarantees, equity investment, and management support such as free or low-cost office space, human resources management, legal and tax services. The government will also establish a star rating system.