Institutions in the information consulting industry

I'm a little confused. According to the principle of separating government from enterprise, it is impossible for a fully funded institution to set up a service company or enterprise.

If an enterprise company needs to be established, it can only be established in other names. Some people in public institutions have to turn into enterprise organizations to operate, and enterprises have a self-financing business model. If there is a government unit assistance agreement, it can be carried out by the government in the nature of purchasing services. To put it bluntly, the government is pulling business for the company. But the organization is fully funded, and it is impossible to have any more income. Otherwise, it is a self-supporting institution.

For self-supporting institutions, the government will not fully allocate funds, and part of them will come from income.