Well a few things, self-interest is necessary to live a life that you want, not a life that others demand you live. If you find it in your best interest to run an orphanage then that is up to you to say and do; not the government, not the people, only the individual who takes it upon themselves to do so. If I did everything on the interests of the people, for the interest of the government, my interest would never be taken into account. I do agree that Rand can be twisted into a Crony Capitalist, and that is a pretty negative thing, however if individuals have no self interest they are nothing but shallow beings. Heroism is another important block of the ideals put forth, one must be heroic and to be heroic means you must do what is ethical at all times, be an ideal man doing what they must to build a future for themselves without ruining the opportunities of others building for themselves, and through building for themselves they will build for the world.
I think that doing things for yourself ultimately betters society. No one builds bridges without getting paid, and those who do are acting against their self-interest.