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New Dynamics in Greater China: Changes of SE in Hong Kong between 2006 -2010. Kam-Tong CHAN, PhD Centre for Third Sector Studies The Hong Kong Polytechnic University [email protected] Contents. Development of social enterprises in Hong Kong Organizational characteristics

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New dynamics in greater china changes of se in hong kong between 2006 2010

New Dynamics in Greater China:Changes of SE in Hong Kong between 2006 -2010

Kam-Tong CHAN, PhD

Centre for Third Sector Studies

The Hong Kong Polytechnic University

[email protected]


Contents

Contents

  • Development of social enterprises in Hong Kong

  • Organizational characteristics

  • Operational strategies

  • Cross-sectoral interaction

  • Social impacts

  • Existing policies on promoting social enterprises

  • Recommendations: Policy framework


Development of social enterprises in hong kong

Development of social enterprises in Hong Kong

  • In line with the Asian financial crisis, the overall unemployment rates had increased persistently since 1997 and reached a peak between 2002 and 2003.

  • The Hong Kong government has began to introduce funding schemes to encourage the establishment of social enterprises at the beginning of 2000s.

  • Institutionally, the government has formally set up a unit to oversee the promotion work for the development of social enterprises.

  • The number of social enterprises being set up has been growing in the decade.

  • There are emergence of alliances and coalitions being formed in the community for supporting the development of social enterprises.


New dynamics in greater china changes of se in hong kong between 2006 2010

The SEs in Hong Kong have undergone 3 main stages:

A) Preparatory Stage:

  • affirmative business to be more market-oriented

  • SWD Funding

    B) Exploratory Stage:

  • Commission on Poverty (CoP)

  • Other Funding Schemes: CIIF, PFD,

    C) Social Entrepreneurship Stage:

  • 2007 CE Election platform

  • SE Forum

  • General Chamber for SE

  • Business Centre at HKCSS


The 3 e models of social enterprise

The 3 E Models of Social Enterprise

  • A) Employment Model: Work-integration

  • B) Empowerment Model (Community / User Employment Empowerment): Social Inclusion and Social Capital

  • C) Entrepreneurial Model: Social Entrepreneurship


E mployment model

Employment Model

Postnatal Care Cooperative


E mpowerment model community empowerment

Empowerment Model:Community empowerment

Tour-guide and lodging services


Social economy

Social economy

St. James Settlement

Community Economic Development


Personal emergency link service

Entrepreneurial Model

Personal Emergency Link Service

Source: Senior Citizen Home Safety Association


Youth mentoring

Youth mentoring

Fullness Christian Vocational Training Centre


Changes in organizational characteristics

Changes in organizational characteristics

  • Objectives

    • creation of employment opportunities for the disadvantaged and vocation training are still the key objectives on both 2006 and 2010 studies

  • Target Groups

    • Women and rehabilitants are the main targets

    • Decrease in the number for children/ youth and the elderly people

    • More diversified for target in 2010, including new immigrants, single parents, or chronic ill patients

  • Forms of SE operation

    • Greater percentages of shops and ecological tourist attractions

    • Sharp decrease in the number of service teams


  • New dynamics in greater china changes of se in hong kong between 2006 2010

    • 4. Nature of Business

      • Higher percentage for food and catering, eco-tourism

  • 5. Nature of Services

    • The status of operation remain similar in both 2006 and 2010


  • Objectives of social enterprise establishment

    Objectives of social enterprise establishment


    New dynamics in greater china changes of se in hong kong between 2006 2010

    Major type(s) of organizations’ service users


    Forms of social enterprise operation

    Forms of social enterprise operation


    Nature of services

    Nature of services


    Status of operation

    Status of operation


    Operational strategies

    Operational strategies

    • Financial management

    • Human resources management

      • Marketing management

  • Governance


  • New dynamics in greater china changes of se in hong kong between 2006 2010

    • Financial management

    • Financial Status and Overall income

      • greater number encountered deficitor just balanced

      • Sharp decline for those SEs with surplus

    • Ways of Spending Expenditure

      • no great change

      • Majority to be invested into SEs or channeled to the overall management of the organizations


    Financial management overall income

    Financial management: Overall income


    Financial management ways of spending expenditures

    Financial management: Ways of spending expenditures


    New dynamics in greater china changes of se in hong kong between 2006 2010

    • Human resources management

    • Staff deployment

      • Professional manager, Technical staff and social workers are still the main staff force

      • Decline in he number of employment counselors

  • Incentive Mechanism

    • Salary package remains the same in 2006 and 2010

    • With some SEs offering bonus, dividends


  • Human resources management staffing deployment

    Human resources management: staffing deployment


    Human resources incentive mechanism

    Human resources: incentive mechanism


    New dynamics in greater china changes of se in hong kong between 2006 2010

    • Marketing management

      Target:

      • General public and the disadvantaged remain as the main targets for sales and services

      • Slight decrease in the percentages of corporate as targets for sales

        Channel:

      • Great increase through the shethered workshop or shops (61.4% to 26.2%)

      • Other internal units within the organizations (internal market) is still high


    Marketing management targets of sales and services

    Marketing management: Targets of sales and services


    Marketing management channels of sales and services

    Marketing management: channels of sales and services


    New dynamics in greater china changes of se in hong kong between 2006 2010

    Governance

    • Organization Structure

      • No particular change of structure or setting up designated unit as revealed in 2006 and 2010 studies

  • Board of Directors

    • Great increase in the number of board members with business background

    • Adjustment at the board level instead of at organizational level

  • CEO

    • Increase in the percentage of CEOs with business administration knowledge or background


  • Governance changes in organizational structure

    Governance: Changes in organizational structure


    Governance institutional adjustments in board of directors

    Governance: Institutional adjustments in Board of Directors


    Governance institutional adjustments in ceo

    Governance: Institutional adjustments in CEO


    Cross sectoral interaction

    Cross-sectoral interaction

    • Facilitation from the government

      • increase in the use of website for marketing information

  • Cooperation with business corporation

    • SE angels


  • Facilitation from the government

    Facilitation from the government


    New dynamics in greater china changes of se in hong kong between 2006 2010

    Cooperation with business corporations


    Social impacts

    Social impacts

    • Social impacts

      • Creation of employment opportunities remain high

      • Decrease in the percentage in the item for expansion of social network


    Discussion on existing policies on promoting social enterprises

    Discussion on existing policies on promoting social enterprises

    Provision of financial support

    Business facilitation

    Promoting cross-sectoral collaboration

    Enhancing public understanding

    37


    1 provision of financial support

    1) Provision of financial support

    Provision of seed money to eligible SEs to help finance their initial operation:

    Social Welfare Department: “Enhancing Employment of People with Disabilities Through Small Enterprise project”

    Health, Welfare and Food Bureau: “Community Investment and Inclusion Fund”

    Home Affairs Department: “Enhancing Self-Reliance Through District Partnership Programme”

    Development Bureau: “Revitalising Historic Buildings Through Partnership Scheme"

    How to differentiate the purposes of various funding schemes and avoid overlapping?

    38


    2 business facilitation

    2) Business facilitation

    Pilot scheme on government procurement:

    Give eligible SEs priority in bidding cleansing services

    What are the other business facilitation prgrammes to help the SEs e.g. government procurement?

    39


    3 promoting cross sectoral collaboration

    3) Promoting cross-sectoral collaboration

    Promoting cross-sector collaboration and encourage more private enterprises and professionals to participate in the development of SE

    Launching the Social Enterprises Partnership Programme

    A Matching Forum: interested business organzations can team up with NGOs to establish social enterprises or to partner with social enterprises.

    The Mentorship Scheme: link up experienced entrepreneurs / professionals with social enterprises so that the former could offer voluntary professional and business advisory services to the latter.

    Social Enterprise Summit

    40


    4 enhancing public understanding

    4) Enhancing public understanding

    Raising public awareness of social enterprise with a view to creating a more conducive environment for the development of SEs

    Producing directory, booklet, website, and TV and radio programme for publicity

    Launching promotion activities in all the 18 districts throughout Hong Kong

    41


    Recommendations policy framework

    Recommendations: Policy framework

    Creation of

    Conducive Environment

    Business facilitation policies

    Creation of opportunities

    Social Innovation Capacity Building

    • Creativity

    • Finance

    • Entrepreneurial skills

    • Technical know –how

    • Process betterment

    Promoting cross-sectoral collaboration

    Encouraging investment

    Enhancing

    public understanding


    New dynamics in greater china changes of se in hong kong between 2006 2010

    • Thank You very much!


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