Qiu Qingqing is the Council Member and Social Innovation Strategic Partnership Facilitator of China Social Entrepreneur Foundation (YouChange), one of the China’s most prominent social enterprise intermediary organizations. Over the past 18 years, YouChange has impacted over 5,000 social organizations in total.
CAPS spoke (virtually) to Qingqing in May 2024 to explore YouChange’s journey in social innovation—from introducing the concept and implementing an impact measurement framework to advocating for impact investing—through cross-sector collaboration.
CAPS: Qingqing, thank you for joining us today. Drawing on your previous experience as the Director of the Social Innovation Support Center, could you tell us about the origin of YouChange’s social innovation work?
Qingqing: The journey began in 2007 with strategic planning, thorough research and numerous field visits to social enterprises across China. This laid a solid foundation for the development of YouChange’s social innovation stream, contributing to the establishment of the Social Innovation Support Center, as well as a partnership with the British Council for the Skills for Social Entrepreneurs pilot in 2009. The initiative marked a milestone in China’s social enterprise movement—formally introducing such concept and nurturing a group of emerging social entrepreneurs.
In the same year, we collaborated not only with the government to compile the Social Innovation Blue Book but also with academics to design tertiary courses in social innovation. The following year, we launched one of the first-ever large-scale charity events in the country, the Social Innovation Carnival. Since then, many domestic foundations and international companies have joined our efforts, and together, we have kept up the momentum.
CAPS: Is cross-sector collaboration always rooted in YouChange’s core values?
Qingqing: Absolutely! Our Founder and Chairperson, Wang Ping, and I have always been champions of the idea that complex social problems cannot be addressed in silos. Cross-sector collaboration and innovation have crucial roles to play. One example (out of many!) that demonstrates YouChange’s commitment to these values is the setting up of the China Alliance of Social Value Investment (CASVI) in 2016, of which more than 50 organizations were brought together to accelerate sustainable finance for social enterprises. We have also made continued efforts to curate social entrepreneurship and innovation programs within academia.
CAPS: What prompted the establishment of CASVI?
Qingqing: It was largely driven by our recognition that financial sustainability is key to the longevity of social enterprises. To ensure sustainability in the long run, social enterprises must transition from depending on philanthropic or government funding to private capital. With this in mind, we sought to create a robust ecosystem of accessible, sustainable finance through CASVI. This includes developing standardized quantitative assessment systems, matching resources and promoting the concept of impact investing.
We hope that CASVI will facilitate the flow of investment capital from traditional financial institutions to social enterprises. After all, despite growing interest in impact investing, social enterprises’ access to such investments remains limited.
CAPS: As impact investing gains traction, monitoring and evaluating impact has become a subject of intense discussion in the philanthropic space. What is YouChange’s take on it?
Qingqing: We have long recognized the importance of measuring impact in a systematic, evidence-based way and pioneered the 3A (Aim, Approach and Action) Social Value Investment Standard Assessment System in 2014. One main motive is to foster a common understanding of impact among stakeholders, ranging from the government, listed companies, social enterprises and individuals. Thus far, this system has been predominantly used for internal screening and monitoring of social enterprises and post-investment management. There is, nevertheless, considerable room for growth in its adoption outside YouChange. The good news is that there has been increased interest across various sectors such as academia, charity and business. For example, Renmin University of China and Tencent have employed the framework for social innovation case studies and accountability measurement of charitable projects, respectively.
CAPS: In your opinion, what are the key enablers for YouChange to build a conducive ecosystem for social innovation?
Qingqing: I would say that forging close ties with the public, private and charitable sectors—the three sectors working hand in hand to drive social innovation—is hugely advantageous. This gives us a profound understanding of how each sector works and opens up opportunities to mobilize collaboration such as CASVI. Firstly, the good relations we have built with the government have strengthened our ability to interpret policy and regulations. On the business side, several entrepreneurs were involved in the founding of YouChange, promoting concepts like entrepreneurship and business viability. Lastly, YouChange positions itself as an intermediary charitable foundation and works closely with other social organizations.
These strong connections have made YouChange stand out in the social innovation field. A wide array of parties continues to support YouChange’s projects, notwithstanding their ups and downs and the rising prominence of other intermediaries.
CAPS: What do you think are the opportunities ahead for social enterprises in China?
Qingqing: Many have pushed for a standardized definition and certification mechanism for social enterprises from the central government. However, I feel that the absence of such helps the sector at its nascent stage. It encourages diversity in areas such as organizational structures and profit reinvestment amid the ever-changing landscape. More groups of diverse status can participate in the growth of social enterprises. Notably, quite a few state-owned enterprises dedicated to corporate social responsibility (CSR) have in some way become social enterprises.
The growing momentum for environmental, social and governance (ESG) in China has led to an increased willingness, even among traditional businesses and local governments, to invest in social enterprises. Moreover, China’s large population base offers substantial market potential for foreign financial institutions. Given these encouraging signs, YouChange will continue to act as a change agent (as it always has been!) and spur more innovative collaboration.
CAPS: All the best to YouChange’s future chapters, and thank you for your time, Qingqing.