Many reasons behind the large scale operations of social enterprises in other countries over China:

First, the legal process, rules and regulations of many countries are supportive for establishing and operating social enterprises smoothly. Some countries have special laws and rules which clearly defined the scope and area of activities for social enterprises. In contrast, China does not have a unified legal framework for social enterprises, and the existing regulations are often vague and difficult to understand.

Second, maximum foreign countries who are patronizing social enterprises and social business for solving many social problems are giving different institutional supports to social entrepreneurs for their initiatives. For example, PKSF is an autonomous organization operated by Bangladesh government for assisting many social enterprises. Similarly, NGO bureau, different ministry, microfinance regulatory body etc. are also helping social enterprises and monitoring the activities of social enterprises. However, China has lack of such specialized institutional supports for social entrepreneurship.

Thirdly, through different authorized institutions, governments of other countries also giving financial supports, tax exemption, tag the programs of social enterprises with different international charity and fund supportive organizations. It helps them to operate with financial strength even at the crisis time of their phase.

Fourth, foreign countries have a more mature social investment market, with a range of investors and financiers willing to invest in social enterprises. In China, the social investment market is still in its infancy, and there is a lack of investors and financiers with the necessary expertise and experience to support the growth of social enterprises.

Fifth, in foreign countries, there is a greater awareness and appreciation of the value of social enterprises, with government support and public recognition of their role in addressing societal challenges. In contrast, social enterprises in China are often viewed as “second-tier” enterprises and are not given the recognition and support they deserve.

The structure of socialistic economy may have little concern about social entrepreneurial functions and its effectiveness for real development of the society in China.

A good answer, but it still needs to be analyzed from a mechanism perspective and empirical data can be found to provide more powerful explanations. These data are important explanatory variables that can explain the limitations on the development of Chinese social enterprises...