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Social Enterprises andSocial Entrepreneurship

Prof. Stephen Y L Cheung

Department of Economics and Finance

City University of Hong Kong

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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

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What is Social Enterprise?

No common definitions

Social Enterprises are businesses with social objectives

³A business with primarily social objectives whose

surpluses are principally reinvested for that purpose in thebusiness 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)

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Social Enterprises in HK

As at the end of January 2006,

43

 NG

Os assist/ engage in 172 socialenterprise projects

The projects involve 37 kinds of businesses

Source: Social Enterprises Resource Center 

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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 

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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 

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Challenges of 

Social Enterprises

Lack of personnel in NGOs with professional

business experience

Financing Double µbottom line¶

Limited understanding

Restriction on private benefits

Familiarity

Type of entrepreneur 

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Success Factors of 

Social Enterprises

Entrepreneur spirits

Expectation for participants

Recognition and support from the generalpublic

Government policy

Administrative barriers? Promoting the concepts of social enterprises

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Potential Benefits of 

Social Enterprises

Create job opportunities, especially for theunderprivileged 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

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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

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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

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SocialEnterprises

Business

Sectors

Government

NGO

³You can¶t fly with one wing.´ 

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~END~