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 cant fly with one wing.


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