Review on “ Enhancing Employment of People with Disabilities through Small Enterprise ” Project (3E ’ s Project) 26 July 2006

2 The 3E’s Project  The Project aims at providing grants for NGOs to set up and run small businesses employing people with disabilities (PWDs)  The maximum grant for each business is $2 million and the no. of disabled employees should not be less than 60% of the total no. of persons employed for the business

3 The 3E’s Project  The first batch of businesses commenced operation in mid 2002 and 38 businesses operated by 20 NGOs have been supported  The review of the Project is to evaluate the cost-effectiveness of the Project and show the direction of its future development

4 Evaluation on Implementation Applications Received87 Supported Businesses 38 Businesses from 20 NGOs (9 Subsidiaries) No. of Applications under Processing 1 Approved Funding$19.9 Mn Estimated No. of Jobs Created 496 (357 for PWDs)

5 Evaluation on Implementation  Business Nature - cleaning - pest control - retail - repair & maintenance - catering- barrier free technology - laundry- blind mobile massage - floral design- telemarketing survey - eco-tourism- one-stop household service - travel service- vegetable & fruit processing - direct sales- transport service

6 Evaluation on Implementation  Business Nature Catering (6) 16% Retail (13) 34%Cleaning (11) (incl. laundry & car beauty) 29% Others (6) 16% Travel (2) (incl. Eco-tourism) 5% Total: 38 Businesses

7 Evaluation on Implementation  Cleaning Service General Cleaning Pest Control

8 Evaluation on Implementation Laundry Service Car Beauty Service

9 Evaluation on Implementation  Retail Direct salesFamily store Healthy Living Specialty Shops (Open soon)

10 Evaluation on Implementation Cultural kiosks in park 7-11 convenience storeRehab Shop

11 Evaluation on Implementation Floral Design & Sales

12 Evaluation on Implementation  Catering Catering service Restaurant at private housing estate

13 Evaluation on Implementation Vegetable & Fruit Processing & Supplying

14 Evaluation on Implementation  Travel Service Eco-tourism Travel & Conference Organizing Service

15 Evaluation on Implementation  Others Telemarketing Service One-Stop Household Service

16 Evaluation on Implementation Barrier Free Access Technology Service Mobile Massage Service

17 Evaluation on Implementation Perfection Transport Repair & Maintenance Service

18 Evaluation on Implementation  Disability Profile (as at May 2006) Mental Handicap (44%) Ex-Mental Illness (41%) Total: 328 PWDs Physical Handicap (7%) Visual Impairment (5%) Visceral Disability (1%) Others (1%) Hearing / Speech Impairment (1%)

19 Evaluation on Implementation  Source of Disabled Employees (as at May 2006) Total: 328 PWDs Supported Employment (55%) IVRSC (17%) Open Recruitment (9%) On-the-Job Training (6%) Sheltered Workshop (4%) IVTC/Skills Centre (4%) Others (4%) Special Schools (1%)

20 Evaluation on Implementation  Income of Employees (as at May 2006) EmployeesDisabled Staff (HK$) Able-bodied Staff (HK$) Full-timePart-timeFull-timePart-time Average Income $3,902$1,960$8,541$2,577

21 Evaluation on Implementation  Change of Financial Status (as at May 2006) Able- bodied Staff Disabled Staff Total From Unemployed CSSA to Low Income CSSA From CSSA to Non- CSSA Total

22 Evaluation on Implementation  Business Performance (as at May 2006) Profit (13 Businesses) Loss (9 Businesses) (including 1 closed) Breakeven (4 Businesses) < 1 year of operation (12 Businesses) Total: 38 businesses

23 Reasons for Successful Businesses Market-oriented mode of operation Customer focused and tailor made services Great diversity of products/services Quality products/services Experienced management team Good cost control (esp. manpower) Successful brand name creating customer loyalty Pooling of existing business at initial stage of operation Stable source of customers (e.g. Large internal market) Continuous expansion of market

24 Reasons for Unsuccessful Businesses  Economic downturn  Keen market competition  Over-estimation of market demand  Lack of experience in business management  Insufficient cost control measures  Undesirable location  Narrow customer base  Insufficient varieties of quality products/services

25 Achievements of the Project  Creating job opportunities for around 770 PWDs  Promoting upward mobility of SW/SE trainees  Demonstrating the working ability of PWDs to the public  Enhancing NGOs’ market-orientation in providing vocational training  Promoting NGOs’ cooperation with private enterprises and public/government departments  Facilitating the setting up of social enterprises

26 Challenges  Decreasing number of applications (as at 6/2006) No. of Applications

27 Challenges  Difficulties faced by operating NGOs - Quite difficult to meet the requirement of 60% disabled employees - Hard to attain self-sustaining right after one year of operation

28 Way Forward  Relax ratio of disabled employees  To explore the feasibility to extend the period of funding support  Set up a pool of volunteers for assisting NGOs in operating the businesses  Further enhance the promotion of the Project

Thank You