Overview of Social Enterprises In Hong Kong

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Overview of Social Enterprises In Hong Kong

• Chan Kam Tong, Ph.D.
• Unit for Third Sector Studies
• Hong Kong Polytechnic University
• ssktchan_at_polyu.edu.hk

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Purposes of the Study

• Four core objectives
• What are the features and characteristics of
  social enterprises attending to work-integration
  in Hong Kong?
• To what extent the work integration social
  enterprise has contributed to the
  employment-related poverty?
• What are the critical success factors of work
  integration social enterprises?
• What are the barriers, constraints and challenges
  facing by the enterprises which have limited
  their development?

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The research team members

• Dr. Chan Kam Tong (Convenor)
• Professor Angelina Yuen-Tsang
• Dr. Ho Po Ying
• Dr. Cheung Kai Chee

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Definition of Social Enterprise

• There is no commonly agreed definition of Social
  Enterprise in Hong Kong
• Yet, there are some essential characteristics
• It is serving social goals by using an enterprise
  strategies
• It is both a from Welfare to Work and a Social
  Investment Approach
• It is providing assistance to the marginal groups
  in the community, by encouraging self-reliance
• Sustainability is important

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Key Features of Social Enterprise in Hong Kong

• 1. emerging and evolving entity
• 2. very much diversified
• 3. for both disabled and able-bodied people
• a) Disabled physically disabled, development
  challenged, and psychiatric patients
• b) Able-bodied people ex-offenders, non-engaged
  youth, women, and middle-aged semi-skilled

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Major Types of Business

• 1. Servicing
• 2. Retailing
• 3. Innovative Craftsmanship
• 4. Catering and Restaurant

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Servicing Cleansing
Building Cleaning
Household cleaning
Pest Control
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Servicing Car Washing
Car Washing
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Vegetable and Fruit Supply Service
Vegetable and Fruit Supply
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Courier Service
Courier Service
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Retailing
Convenience Stores Community
Convenience Store Hospital
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Retailing
Food Stall in Park
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Catering and Restaurant
Restaurant
Cafe
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Catering
Catering Delivery for Party
Club House
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Hair Salon
Hair Salon
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Eco-tourism
Eco-tourism
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Modes of integration

• Employment bounded work integration
• Status of target groups
• Employees (salary hourly rate or monthly)
• Trainees (allowance)
• Members of co-operatives (salary and work
  contract)

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Enterprise Operation

• Four major dimensions in operation
• 1. Resources Mobilization
• 2. Marketing Mix and Market Segment
• 3. Governance
• 4. Networking and Expertise

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Resources Mobilization

• A) Financial Resources
• Social Welfare Department- Enhancing Employment
  of People with Disabilities through Small
  Enterprise Project- Seed Money
• CIIF- development of Social Capital
• Jockey Club Trust Fund- for start-up and capital
  cost
• Other Community or Charity Foundations-
• e.g. Keswick Foundations, Oxfam
• Many of these funding sources will target for
  specific goals and objectives

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• B) Human Resources
• structure is relative simple
• no. of employees/ trainees varies ( a few 180 )
• mostly supervised by human service professionals
  (e.g. social workers). Some managers have
  business training and experience, but not very
  common

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Marketing Mix and Market Segment

• The Marketing Mix (4-Ps)
• Product depends on traits and skill requirements
• Price market-determined and cost-determined
• Place depends on cost of the venue and prospects
  of business
• Promotion various promotion methods are used,
  but complementary words and words of mouths of
  customers are more important
• Market Segment
• Both external market (community at large) and
  internal market (for other service users or
  members)

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Governance

• There are 5 types of governance structures
• 1. Company/ Small Medium Enterprise Model
  registered separately as a company
• 2. Subsidiary Unit Model as non-subvented unit
  of the NGO
• 3. Co-operative Model formally / informally as
  co-operative
• 4. Flea market Model highly flexible
• 5. Joint Venture Model with business partners

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Networking and Expertise

• Rely on the networking from public and private
  sector
• Marketing Consultancy Office (MCO) of the Social
  Welfare Department offers great help in getting
  service tenders for the rehabilitation services
• Yet, there is great demands from the partnership
  relationship with the private sector, in
  particular, the small and medium enterprise

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Essential Contributions of Social Enterprises

• 1. Resources Mobilizations
• From unemployed to employed
• From no salary to wage earning
• 2. Empowerment
• Springboard function stepping stone for open
  employment
• Esteem enhancement because of the employee status
• 3. Intermediation
• Platform for collaboration among Government,
  Private and Third Sector

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Critical Success Factors

• 1. Social Entrepreneurship and Mindset
• Balance between Welfare vs. Business Enterprise
• 2. Marketability
• Market niche and market value
• 3. Knowledge, Skills and Attitude
• Enterprise strategies with Social goals
• 4. Branding
• Good will and public image
• 5. Tripartite Partnership
• Collaboration among Government, Private Sector
  and Third Sector

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Perceived Difficulties

• 1. Challenges in human resources
• Change of mindset and equip with business
  knowledge and skills
• Balanced ratio of normal and disabled workers
• 2. Challenges in financial resources
• Competition in open market
• Risk in break-even
• 3. Constraints in the bidding system
• Short track record
• Tight cash flow

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Recommendations

• Social Enterprise should be considered as one of
  the essential approaches in helping the marginal
  group. Public awareness and support is deemed
  important
• Tripartite Partnership further cooperation among
  Government, Private and Third Sector
• Promotion of Corporate Social Responsibility
  (CSR) among large Corporate and SMEs
• Flexibility in tendering and bidding mechanism.
  e.g. restricted tender in some bidding or
  tendering exercise

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• Thank you