1. Social Enterprises and Social Entrepreneurship Prof. Stephen Y L Cheung Department of Economics and Finance City University of Hong Kong

2. 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

3. 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, 2002:7) 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)

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. Social Enterprises Business Sectors Government NGO “You can’t fly with one wing.”

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