Overview of Social Enterprises  In Hong Kong Chan Kam Tong, Ph.D. Unit for Third Sector Studies Hong Kong Polytechnic Univ...
Purposes of the Study <ul><li>Four core objectives : </li></ul><ul><li>What are the  features and characteristics  of soci...
The research team members <ul><li>Dr. Chan Kam Tong (Convenor) </li></ul><ul><li>Professor Angelina Yuen-Tsang </li></ul><...
Definition of Social Enterprise  <ul><li>There is no commonly agreed definition of Social Enterprise in Hong Kong </li></u...
Key Features of Social Enterprise  in Hong Kong  <ul><li>1.  emerging  and  evolving  entity  </li></ul><ul><li>2. very mu...
Major Types of Business <ul><li>1. Servicing </li></ul><ul><li>2. Retailing </li></ul><ul><li>3. Innovative Craftsmanship ...
Servicing: Cleansing Household cleaning Pest Control Building Cleaning
Servicing: Car  Washing Car Washing
Vegetable and Fruit Supply Service Vegetable and Fruit Supply
Courier Service Courier Service
Retailing Convenience Stores: Community Convenience Store: Hospital
Retailing Food Stall in Park Direct Sale
Catering and Restaurant Cafe Restaurant
Catering Catering Delivery for Party Club House
Hair Salon Hair Salon
Eco-tourism Eco-tourism
Modes of integration <ul><li>Employment bounded: work integration </li></ul><ul><li>Status of target groups: </li></ul><ul...
Enterprise Operation <ul><li>Four major dimensions in operation:  </li></ul><ul><li>1. Resources Mobilization </li></ul><u...
Resources Mobilization <ul><li>A)  Financial Resources </li></ul><ul><ul><ul><li>Social Welfare Department- “Enhancing Emp...
<ul><li>B)  Human Resources </li></ul><ul><ul><li>structure is relative  simple </li></ul></ul><ul><ul><li>no. of employee...
Marketing Mix and Market Segment  <ul><li>The Marketing Mix (4-Ps) </li></ul><ul><ul><li>Product : depends on traits and s...
Governance <ul><li>There are 5 types of governance structures: </li></ul><ul><ul><li>1.  Company/ Small Medium Enterprise ...
Networking and Expertise <ul><li>Rely on the networking from public and private sector </li></ul><ul><li>Marketing Consult...
Essential Contributions of  Social Enterprises <ul><li>1.  Resources Mobilizations </li></ul><ul><ul><ul><li>From unemploy...
Critical Success Factors <ul><li>1. Social Entrepreneurship and Mindset </li></ul><ul><ul><ul><li>Balance between Welfare ...
Perceived Difficulties <ul><li>1. Challenges in human resources </li></ul><ul><ul><ul><li>Change of mindset and equip with...
Recommendations <ul><li>Social Enterprise should be considered as one of the essential approaches in helping the marginal ...
 
<ul><li>Thank you </li></ul>
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Overview of Social Enterprises In Hong Kong

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Overview of Social Enterprises In Hong Kong

  1. 1. Overview of Social Enterprises In Hong Kong Chan Kam Tong, Ph.D. Unit for Third Sector Studies Hong Kong Polytechnic University [email_address]
  2. 2. Purposes of the Study <ul><li>Four core objectives : </li></ul><ul><li>What are the features and characteristics of social enterprises attending to work-integration in Hong Kong? </li></ul><ul><li>To what extent the work integration social enterprise has contributed to the employment-related poverty ? </li></ul><ul><li>What are the critical success factors of work integration social enterprises? </li></ul><ul><li>What are the barriers, constraints and challenges facing by the enterprises which have limited their development? </li></ul>
  3. 3. The research team members <ul><li>Dr. Chan Kam Tong (Convenor) </li></ul><ul><li>Professor Angelina Yuen-Tsang </li></ul><ul><li>Dr. Ho Po Ying </li></ul><ul><li>Dr. Cheung Kai Chee </li></ul>
  4. 4. Definition of Social Enterprise <ul><li>There is no commonly agreed definition of Social Enterprise in Hong Kong </li></ul><ul><li>Yet, there are some essential characteristics: </li></ul><ul><ul><li>It is serving social goals by using an enterprise strategies </li></ul></ul><ul><ul><li>It is both a “ from Welfare to Work ” and a “ Social Investment ” Approach </li></ul></ul><ul><ul><li>It is providing assistance to the marginal groups in the community, by encouraging self-reliance </li></ul></ul><ul><ul><li>Sustainability is important </li></ul></ul>
  5. 5. Key Features of Social Enterprise in Hong Kong <ul><li>1. emerging and evolving entity </li></ul><ul><li>2. very much diversified </li></ul><ul><li>3. for both disabled and able-bodied people </li></ul><ul><ul><ul><li>a) Disabled : physically disabled, development challenged, and psychiatric patients </li></ul></ul></ul><ul><ul><ul><li>b) Able-bodied people : ex-offenders, non-engaged youth, women, and middle-aged semi-skilled </li></ul></ul></ul>
  6. 6. Major Types of Business <ul><li>1. Servicing </li></ul><ul><li>2. Retailing </li></ul><ul><li>3. Innovative Craftsmanship </li></ul><ul><li>4. Catering and Restaurant </li></ul>
  7. 7. Servicing: Cleansing Household cleaning Pest Control Building Cleaning
  8. 8. Servicing: Car Washing Car Washing
  9. 9. Vegetable and Fruit Supply Service Vegetable and Fruit Supply
  10. 10. Courier Service Courier Service
  11. 11. Retailing Convenience Stores: Community Convenience Store: Hospital
  12. 12. Retailing Food Stall in Park Direct Sale
  13. 13. Catering and Restaurant Cafe Restaurant
  14. 14. Catering Catering Delivery for Party Club House
  15. 15. Hair Salon Hair Salon
  16. 16. Eco-tourism Eco-tourism
  17. 17. Modes of integration <ul><li>Employment bounded: work integration </li></ul><ul><li>Status of target groups: </li></ul><ul><ul><li>Employees (salary: hourly rate or monthly) </li></ul></ul><ul><ul><li>Trainees (allowance) </li></ul></ul><ul><ul><li>Members of co-operatives (salary and work contract) </li></ul></ul>
  18. 18. Enterprise Operation <ul><li>Four major dimensions in operation: </li></ul><ul><li>1. Resources Mobilization </li></ul><ul><li>2. Marketing Mix and Market Segment </li></ul><ul><li>3. Governance </li></ul><ul><li>4. Networking and Expertise </li></ul>
  19. 19. Resources Mobilization <ul><li>A) Financial Resources </li></ul><ul><ul><ul><li>Social Welfare Department- “Enhancing Employment of People with Disabilities through Small Enterprise Project”- Seed Money </li></ul></ul></ul><ul><ul><ul><li>CIIF- development of Social Capital </li></ul></ul></ul><ul><ul><ul><li>Jockey Club Trust Fund- for start-up and capital cost </li></ul></ul></ul><ul><ul><ul><li>Other Community or Charity Foundations- </li></ul></ul></ul><ul><ul><ul><li> e.g. Keswick Foundations, Oxfam </li></ul></ul></ul><ul><ul><ul><li>Many of these funding sources will target for specific goals and objectives </li></ul></ul></ul>
  20. 20. <ul><li>B) Human Resources </li></ul><ul><ul><li>structure is relative simple </li></ul></ul><ul><ul><li>no. of employees/ trainees varies ( a few – 180 ) </li></ul></ul><ul><ul><li>mostly supervised by human service professionals (e.g. social workers). Some managers have business training and experience , but not very common </li></ul></ul>
  21. 21. Marketing Mix and Market Segment <ul><li>The Marketing Mix (4-Ps) </li></ul><ul><ul><li>Product : depends on traits and skill requirements </li></ul></ul><ul><ul><li>Price : market-determined and cost-determined </li></ul></ul><ul><ul><li>Place : depends on cost of the venue and prospects of business </li></ul></ul><ul><ul><li>Promotion : various promotion methods are used, but complementary words and words of mouths of customers are more important </li></ul></ul><ul><li>Market Segment </li></ul><ul><ul><li>Both external market (community at large) and internal market (for other service users or members) </li></ul></ul>
  22. 22. Governance <ul><li>There are 5 types of governance structures: </li></ul><ul><ul><li>1. Company/ Small Medium Enterprise Model : registered separately as a company </li></ul></ul><ul><ul><li>2. Subsidiary Unit Model : as ‘non-subvented’ unit of the NGO </li></ul></ul><ul><ul><li>3. Co-operative Model : formally / informally as co-operative </li></ul></ul><ul><ul><li>4. Flea market Model : highly flexible </li></ul></ul><ul><ul><li>5. Joint Venture Model : with business partners </li></ul></ul>
  23. 23. Networking and Expertise <ul><li>Rely on the networking from public and private sector </li></ul><ul><li>Marketing Consultancy Office (MCO) of the Social Welfare Department offers great help in getting service tenders for the rehabilitation services </li></ul><ul><li>Yet, there is great demands from the partnership relationship with the private sector, in particular, the small and medium enterprise </li></ul>
  24. 24. Essential Contributions of Social Enterprises <ul><li>1. Resources Mobilizations </li></ul><ul><ul><ul><li>From unemployed to employed </li></ul></ul></ul><ul><ul><ul><li>From no salary to wage earning </li></ul></ul></ul><ul><li>2. Empowerment </li></ul><ul><ul><ul><li>“ Springboard function”: stepping stone for open employment </li></ul></ul></ul><ul><ul><ul><li>Esteem enhancement because of the employee status </li></ul></ul></ul><ul><li>3. Intermediation </li></ul><ul><ul><ul><li>Platform for collaboration among Government, Private and Third Sector </li></ul></ul></ul>
  25. 25. Critical Success Factors <ul><li>1. Social Entrepreneurship and Mindset </li></ul><ul><ul><ul><li>Balance between Welfare vs. Business Enterprise </li></ul></ul></ul><ul><li>2. Marketability </li></ul><ul><ul><ul><li>Market niche and market value </li></ul></ul></ul><ul><li>3. Knowledge, Skills and Attitude </li></ul><ul><ul><ul><li>Enterprise strategies with Social goals </li></ul></ul></ul><ul><li>4. Branding </li></ul><ul><ul><ul><li>Good will and public image </li></ul></ul></ul><ul><li>5. Tripartite Partnership </li></ul><ul><ul><ul><li>Collaboration among Government, Private Sector and Third Sector </li></ul></ul></ul>
  26. 26. Perceived Difficulties <ul><li>1. Challenges in human resources </li></ul><ul><ul><ul><li>Change of mindset and equip with business knowledge and skills </li></ul></ul></ul><ul><ul><ul><li>Balanced ratio of normal and disabled workers </li></ul></ul></ul><ul><li>2. Challenges in financial resources </li></ul><ul><ul><ul><li>Competition in open market </li></ul></ul></ul><ul><ul><ul><li>Risk in break-even </li></ul></ul></ul><ul><li>3. Constraints in the bidding system </li></ul><ul><ul><ul><li>Short track record </li></ul></ul></ul><ul><ul><ul><li>Tight cash flow </li></ul></ul></ul>
  27. 27. Recommendations <ul><li>Social Enterprise should be considered as one of the essential approaches in helping the marginal group. Public awareness and support is deemed important </li></ul><ul><li>Tripartite Partnership : further cooperation among Government, Private and Third Sector </li></ul><ul><li>Promotion of Corporate Social Responsibility (CSR) among large Corporate and SMEs </li></ul><ul><li>Flexibility in tendering and bidding mechanism. e.g. ‘ restricted tender ’ in some bidding or tendering exercise </li></ul>
  28. 29. <ul><li>Thank you </li></ul>

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