Nowadays, with the continuous rapid economic development, the profit distribution in social enterprises has become more and more prominent. Distributing profit wisely has become an important starting point for a social enterprise’s management and operation. The executors of social enterprises hope to get a more perfect method to distribute profit so that they can make more reasonable operation plans. Practically, a reasonable distribution of profits is the guarantee for the sustainable development of social enterprises. Because of the career of my mom(i.e. she is a business executor), I find it very interesting to learn some financial distribution patterns in enterprise. That is my motivation for doing this research. 1.0 Introduction Profits and surplus are the two core driving forces for the development of social enterprises. People always discuss these two different concepts. As the enterprises continue to grow, social enterprises start to pay more attention to the distribution of profits.
When Charles Leadbeater (1997) proposed the concept of “social entrepreneur” in 1997, social enterprise was only in its infancy. 14 years have passed since people began to pay attention to social enterprises. Today, social enterprises are widely organized. Social enterprises are businesses with social objectives, and the profits they make usually are used for their social objectives. Social enterprises have to self-finance, and the money they raise is used to pay for employee wages and carry on operational activities. Thus, the profit distribution is very important to the development of a social enterprise. Laville and Nyssens’s view is that the distribution of the profits should be fitted to the social enterprise or local community. (Laville& Marthe, 2001,p.312-332) They believe that the profits must be managed independently and cannot be owned by the government or individuals. The distribution of profits must be reasonable either for the development of social...