Company as Companion
How a social enterprise is contributing to common prosperity in rural areas
Former villager Ma Nubi is getting used to living in a county town. In February, he and his family celebrated the second Spring Festival in their new home in a modern-looking residence. More importantly, with more than 100 sheep, the family can now have a decent income. Their former home was located in a remote village in Dongxiang Automatous County in Linxia Hui Autonomous Prefecture of Gansu Province in northwest China. With its nearly 300,000 residents spread across 1,750 mountain ranges and 3,083 ravines, the county was once deeply impoverished. In Ma’s village, a few potato fields and a dozen or so sheep were the only sources of income for many people.
Thanks to the joint support of the government, companies and other forces, great changes have taken place in the county, with Ma and other villagers having relocated into new houses in the county, beginning a new life.
Behind the changes is the consistent help from the Guoqiang Foundation based in Guangdong Province, and Bixiang, a public enterprise run by the foundation. Like many other non-governmental organizations, they have contributed to rural development at different stages of China’s endeavor to bring a better life to the people, from poverty alleviation to rural revitalization and now common prosperity.
A new model
In 2018, the Guoqiang Foundation sent a team to Dongxiang which marked the beginning of its poverty alleviation support to the county. The goal was to increase local people’s income by building and operating animal husbandry bases with the joint efforts of the foundation, cooperatives and rural households. In 2019, the team built two sheep-raising bases together with two local cooperatives, thus engaging local people
in animal husbandry.
Before that, the Ma family had raised only several sheep. Thanks to the introduction of the new model, they have been expanding the size of their herd and now have more than 100 sheep. Since they joined a cooperative, Ma is only responsible for raising sheep, and other matters such as sales are carried out by the cooperative. With an annual income of around 70,000 yuan ($11,067), the family are now much better off.
To enhance the brand value of Dongxiang sheep and promote a healthy and sustainable development of the sheep-raising industry, the foundation and the enterprise under it invested 16 million yuan ($2.53 million) in 2021 to build a high-standard breeding base in the county.
“The base, armed with advanced equipment, employs farmers, trains them in modern animal husbandry, and provides high-quality sheep breeds to enhance breeding returns,” said Yin Ranping, Deputy General Manager of Bixiang.
The enterprise also helps with the sales of the sheep. It has established online and offline sales channels and held food festivals for three consecutive years to promote the sheep brand. “Altogether we have helped sell nearly 47,000 Dongxiang sheep, benefiting 6,000 households,” Yin said.
Local solutions
Established in 2018, Bixiang is a social enterprise that is not for profits. In its work for rural revitalization, it aims to continue to help areas that have been lifted out of poverty, and will return its profits to the Guoqiang Foundation for it to invest in public welfare in rural areas, according to Yin.
The company hopes that by using innovative business models and effective market tools, they can systematically solve the problems pertaining to sales of agricultural products, employment, sustainable development, etc. in areas that have just shed off poverty. “We regard ourselves as a comprehensive service provider for rural revitalization,” Yin said.
He revealed that the Guoqiang Foundation and its affiliated companies have donated over 10 billion yuan ($1.58 billion) in recent years, and have helped more than 490,000 people escape poverty. They are currently working on rural revitalization in 57 counties in 16 provinces of China. “Through localized operation of industries, we can employ villagers and attract young people to return to their hometowns to start businesses, thus driving local economic development,” Yin said.
Meanwhile, by promoting the sales of local products, the foundation helps increase the income of the local people. Apart from sheep, other local specialties such as potatoes and embroidery are also promoted by the foundation through its sales channels. “Altogether, we have developed more than 690 products, and achieved
YIN RANPING Deputy General Manager of Bixiang
about 420 million yuan ($66.46 million) worth of sales, benefiting more than 175,000 farmers,” Yin said.
Sustainable support
In the top-level design of China’s “common prosperity” route, the third distribution relies on social forces, including the majority of companies. After more than 40 years of reform and opening up, private companies like Bixiang have become an indispensable force to promote China’s economic and social development and achieve common prosperity.
In China’s planned approach to common prosperity, the “third distribution,” which runs parallel to primary distribution and redistribution, relies on social forces, including enterprises. Private enterprises like Bixiang have become an indispensable contributor to China’s economic and social development and, ultimately, common prosperity.
“For private enterprises like us, the goal of achieving common prosperity means new opportunities and challenges. We need to identify industries with competitive advantages and stimulate the vitality of the agricultural market,” Yin said.
He believes that Bixiang’s operations will boost rural revitalization and hence contribute to common prosperity. Leveraging business models and market tools for solving social problems has proved efficient, creating both economic and social benefits.
Apart from the sheep-raising base in Dongxiang, the enterprise has established eight other rural development programs nationwide based on local advantages. These programs generate profits and are therefore sustainable.
To improve its ability to support rural development, Bixiang has put efforts into forging the Bixiang Farm brand of agricultural products and building digital platforms for cooperation with villagers.
Another focus of the enterprise is training local talents in line with the needs of the specific industries established there. “This would give sustainable support to these local industries in our efforts to contribute to common prosperity,” Yin said.
For private enterprises like us, the goal of achieving common prosperity means new opportunities and challenges. We need to identify industries with competitive advantages and stimulate the vitality of the agricultural market.