Dr. Kam-tong CHAN Centre for Third Sector Studies Department of Applied Social Sciences The Hong Kong Polytechnic University Eco-system of Social Enterprise in Hong Kong

 Development of SE in Hong Kong  The Delphi Study  Findings: Enabling context for development of SE in Hong Kong ◦ Contextual Level ◦ Institutional Level ◦ Operational Level  Some barriers  Policy suggestions

 1980s-90s : Exploratory period ◦ “Simulated business” by some NGOs – provide employment opportunities (1980s) ◦ Set up social enterprise to solve social problems (e.g. Senior Citizen Home Safety Association)  2000s : Government policy-oriented ◦ Economic downturn and emergence of poverty and unemployment problem ◦ Adopted “welfare-to-work approach” by government ◦ Funding schemes provided

 Mid-2000s to now : Diversified development  Lack of financial sustainability by social enterprise operated by some NGOs  Emergence of Social Entrepreneurship ◦ Diversification of social enterprise objective ◦ Business model and social innovation  Emergence of platform organizations (some examples) ◦ HKCSS-HSBC Social Enterprise Business Centre (2006 / 2008) ◦ Social Ventures Hong Kong (2007) ◦ Hong Kong Social Entrepreneurship Forum (2008) ◦ Hong Kong General Chamber of Social Enterprises (2009) ◦ The Good Lab (2012)

Diversification in service users ƒ%ƒ%ƒ% （ 1 ） Rehabilitants （ 2 ） Community residents （ 3 ） Women （ 4 ） Unemployed （ 5 ） Elderly （ 6 ） mid / low income earners （ 7 ） Children and youth n

Diversifiction in nature of services % Mean Unit % % （ 1 ） Food and Catering （ 2 ） Production and sales （ 3 ） General cleansing services （ 4 ） Personal care services （ 5 ） Domestic services （ 6 ） Eco-Tourism guide services n.a （ 7 ） Resources Recycling n.a n

Source: Heckl, E. & Pecher, I. (2007), Study on Practices and Policies in the Social Enterprise Sector in Europe. Final Report. Vienna: KMU Forschung, Austria  Report on the enabling environment in Europe for our reference  5 major types of supportive measurements for creating the enabling environment for social enterprise development: ◦ Legal Regulation ◦ Financial Support ◦ Business Support ◦ Measures fostering co-operation ◦ EQUAL Community Initiative (financed by European Social Fund and EU Member States)

 PPR research from ◦ Identify the essential factors, including the drivers, enablers and barriers, for creating an enabling environment for the development of social enterprises ◦ Conduct through Delphi Technique and Stakeholder Interview  Delphi approach ◦ Grounded approach on identifying the enabling environment through the expert-led panel ◦ Involve experts of academics and practitioners from both Hong Kong and overseas ◦ Important tool for identifying enabling environment for social enterprise development in Hong Kong context

 Result from the experts in Delphi Approach:  3-level-framework of enabling context/ environment e.g. environment mindset Contextual Level e.g. political mindset Institutional Level e.g. operational mindset Operation Level

 Enabling environment ◦ Contextual Level (Perceived environment and values)  Aspiration to do good and do well  Clear social objectives  Commitment to problem-solving  Holistic and change-driven mindset ◦ Contextual Level (Public understanding)  Positive representation of social enterprise in media to attract cross-sector and public support ◦ For the discussion on social objective, it can be contributed to multiple social problem and should focus on specific least disadvantaged groups

 Enabling environment ◦ Institutional Level (Cross-sectoral collaboration)  Trust, mutual respect and support among stakeholders in government, private, civil society and academic sectors  Provide supportive and holistic eco-environment for social enterprises  Provide supportive and integrated policies and resources by governmental organization  Provide skills development and capacity building ◦ Trust among such collaboration is by earning but not by default

 Enabling environment ◦ Operational Level  Leader to provide vision  Committed personnel is in place  Commitment to build infrastructure and products  Specific skills for business management and knowledge transfer ◦ Most of them are agreed by both Delphi expert and Interviewees

 Lack of successful cases  Unable to find good personnel to operate social enterprise  High rental and operating costs  Inability of social enterprise to innovate

 Contextual Level ◦ Public education on social enterprises ◦ Promotion of ethical consumption ◦ Promote the ethos of social innovation  Institutional Level ◦ Promote trust among different sectors  Operational level ◦ Strengthen capacity building ◦ Demonstrate SE’s social impact to the society

Thank you!