This document discusses social enterprises and social entrepreneurship. It defines social enterprises as businesses with social objectives that reinvest profits back into the community rather than maximizing shareholder profit. The document outlines that social enterprises in Hong Kong are mainly operated by charities and non-profits, or as subsidiaries of for-profit businesses. It identifies challenges such as lack of business experience and financing, and success factors like entrepreneurial spirit and government support. The document argues social enterprises can benefit communities by creating jobs and meeting new needs. It stresses the importance of universities, businesses, and government working together to foster social entrepreneurship.

1. Social Enterprises &
Social Entrepreneurship
SUBODH KUMAR SRIVASTAVA

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 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)

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 subsidiaries
 Projects supported by Government seed
funding.
Source: Social Enterprises Resource Center

7. 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

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 members

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

13. ~END~