Social Enterprises & Social Entrepreneurship
SUBODH KUMAR SRIVASTAVA
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
What is Social Enterprise?
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)
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
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
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 subsidiaries Projects supported by Government seed
funding.
Source: Social Enterprises Resource Center
Challenges of Social Enterprises
Lack of personnel in NGOs with professional business experience
Financing Double ‘bottom line’ Limited understanding Restriction on private benefits Familiarity Type of entrepreneur
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
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
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
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 members
Social Enterprises
Business Sectors
Government
NGO
“You can’t fly with one wing.”
~END~
Recommended
