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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 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

  • 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.

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

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
operational strategies
Operational strategies
  • Financial management
  • Human resources management
                • Marketing management
  • Governance

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

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

Marketing management


    • 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


    • Great increase through the shethered workshop or shops (61.4% to 26.2%)
    • Other internal units within the organizations (internal market) is still high


  • 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
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
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


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?


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?


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


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


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


public understanding