Social%20Enterprises%20and%20Social%20Entrepreneurship

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Social Enterprises and Social Entrepreneurship

• Prof. Stephen Y L Cheung
• Department of Economics and Finance
• City University of Hong Kong

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Contents

• Definition of social enterprises
• Social Enterprises in HK
• Challenges of social enterprises
• Success factors of social enterprises
• Potential benefits of social enterprises
• Fostering of entrepreneurship in the social
  sectors

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What is Social Enterprises?

• No common definitions
• Social Enterprises are businesses with social
  objectives
• A business with primarily social objectives
  whose surpluses are principally reinvested for
  that purpose in the business or in the community,
  rather than being driven by the need to maximize
  profit for shareholders and owners. (Social
  Enterprise A strategy for success, U.K.
  Department of Trade and Industry, 20027)
• Social Enterprises have developed in that sector
  of the economy that lies between the market and
  the State. Theses enterprises seek to reconcile
  market and non-market forces within a plural
  economy (OECD,1996)

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Social Enterprises in HK

• As at the end of January 2006,
• 43 NGOs assist/ engage in 172 social enterprise
  projects
• The projects involve 37 kinds of businesses

Source Social Enterprises Resource Center
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Social Enterprises in HK

• Services provided by social enterprises in HK
• Production and sales
• Domestic services
• General cleaning services
• Catering services
• Personal care services
• Other products and services

Source Social Enterprises Resource Center
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Social Enterprises in HK

• Social enterprises in HK are mainly
• Operated by charities and non-profit
  organizations
• Run by some for-profit business organizations as
  a subsidiaries
• Projects supported by Government seed funding.

Source Social Enterprises Resource Center
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Challenges of Social Enterprises

• Lack of personnel in NGO with professional
  business experience
• Financing
• Double bottom line
• Limited understanding
• Restriction on private benefits
• Familiarity
• Type of entrepreneur

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Success Factors of Social Enterprises

• Entrepreneur spirits
• Expectation for participants
• Recognition and support from the general public
• Government policy
• Administrative barriers?
• Promoting the concepts of social enterprises

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Potential Benefits of Social Enterprises

• Create job opportunities, especially for the
  underprivileged groups
• Increase employability of participants
• ? Enhance integration into labor market
• ? Become self-reliant
• Innovation
• ? Meet new needs
• Increasing density of community network and
  cross-sector partnerships
• ? Promote community inclusion

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Fostering of Entrepreneurship in Social
Enterprises

• Role of university
• Training, executive education, and research
  support
• Role of business sectors
• Expertise, funding support, and mentorship
• Role of the government
• Legislation tax advantages, and seed money

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Fostering of Entrepreneurship in Social
Enterprises

• Supporting SMEs in HK
• SUCCESS (Support and Consultation Centre for
  SMEs)
• SME funding Scheme
• SME Loan Guarantee Scheme
• SME Export Marketing Fund
• SME Training Fund
• SME Development Fund
• Mentorship Programme
• SME Committee

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You cant fly with one wing.
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• END