Social enterprise is an emerging concept of enterprises. It integrates the social mission of non-profit organizations and the efficiency and self-sustainability of private companies. The new concept has important impacts to traditional non-profit organizations. However, there are many risks and challenges for a non-profit organization to transform into a social enterprise. The Bunun Tribe is successful in developing social enterprise strategies for cultural-based industry. This study uses system dynamics to analyze the development model of the Bunun Tribe. The result shows that the traditional industrialization model is more likely to be trapped by the short-term benefits and lost the long-term competence. The models adopted by the Bunun Tribe avoid the deficiency and could be a good reference for other organizations. Implications of this research are also discussed.