Transcript Social Enterprises and Social Entrepreneurship

Social Enterprises and
Social Entrepreneurship
Prof. Stephen Y L Cheung
Department of Economics and Finance
City University of Hong Kong
Contents
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Definition of social enterprises
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Social Enterprises in HK
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Challenges of social enterprises
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Success factors of social enterprises
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Potential benefits of social enterprises
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Fostering of entrepreneurship in the social
sectors
What is Social Enterprises?
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No common definitions
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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 nonmarket forces within a plural economy (OECD,1996)
Social Enterprises in HK
As at the end of January 2006,
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43 NGOs assist/ engage in 172 social
enterprise projects
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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 a subsidiaries
 Projects supported by Government seed
funding.
Source: Social Enterprises Resource Center
Challenges of
Social Enterprises
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Lack of personnel in NGO with professional
business experience
Financing
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Double ‘bottom line’
Limited understanding
Restriction on private benefits
Familiarity
Type of entrepreneur
Success Factors of
Social Enterprises
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Entrepreneur spirits
Expectation for participants
Recognition and support from the general
public
Government policy
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Administrative barriers?
Promoting the concepts of social enterprises
Potential Benefits of
Social Enterprises
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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 crosssector partnerships
→ Promote community inclusion
Fostering of Entrepreneurship
in Social Enterprises
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Role of university
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Role of business sectors
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Training, executive education, and research
support
Expertise, funding support, and mentorship
Role of the government
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Legislation tax advantages, and seed money
Fostering of Entrepreneurship
in Social Enterprises
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Supporting SMEs in HK
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SUCCESS (Support and Consultation Centre for
SMEs)
SME funding Scheme
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SME Loan Guarantee Scheme
SME Export Marketing Fund
SME Training Fund
SME Development Fund
Mentorship Programme
SME Committee
Government
Social
Enterprises
Business
Sectors
NGO
“You can’t fly with one wing.”
~END~