Institutional and legal conditions for the development of social enterprises in China: the national provisions and the local pilot schemes

The aim of the article is to assess the institutional and legal conditions for the development of social enterprises in China by analyzing the current national provisions, indirectly relating to these entities, the local pilot schemes and the accreditation systems of social enterprises operating within them, as well as to formulate recommendations to decisionmakers concerning further necessary measures for the development of social enterprises. The analysis carried out has drawn several key conclusions. China is at an early stage in the implementation of institutional and legal solutions which are important for the development of social enterprises. There are no national laws and policies regulating the status and functioning of these entities. The national provisions on non profit law and company law relate indirectly to social enterprises. A complementary set of rules is needed to take account of the hybrid organisational form of social enterprises. In addition, a comprehensive assessment of the existing institutional and legal arrangements implemented under local pilot schemes (in Chengdu, Shunde-Foshan, Shenzhen, Beijing) is needed. They provide the basis for national legislation and policies relating to social enterprises. Insufficient understanding of the concept and the importance of social entrepreneurship by decision-makers at the government level can be considered problematic.