Social Innovation

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www.socialenterprise.org.hk
Tri-Sectoral
Partnership
Government
Executive
Judiciary
Legislature
Public service
Civil Society
Business
NGOs
Academic
Small, medium, and large
enterprises
Media
Trade Associations
Religious Groups
Chambers of commerce
Civic Organizations
Leverage
– Social Entrepreneurship
Government
Leadership
Authority
Legislation
Funding schemes
Civil Society
Trust
Network
Goodwill
Community
Social Issues
The Disadvantaged
Business
Financial resources
Technology
Business Skills
Customers
Training
Process
Goodwill
Resources
Partnership
Nearly every problem has been solved
by someone, somewhere…… [but] we
can’t seem to replicate [those
solutions] anywhere else.
Bill Clinton
Definition of Social Enterprise
triple bottom lines
serving the disabled
Change the world
Profit with purposes
creating employment opportunities
http://www.project10tothe100.com/index.html
community
interests
Social Innovation
– Where does the innovation come from?
DID
http://www.dialogue-in-the-dark.com/
Social Innovation
– Where does the innovation come from?
MY
http://hk.youtube.com/watch?v=YxpTFwQx-A8
http://www.youtube.com/watch?v=TPk2gRuIdj0
How Kiva works
Source: www.kiva.org
Making a loan
Source: www.kiva.org
MyC4 business model
Bidding page
Statistics between MyC4 & Kiva
MyC4
Launched October 2007
Kiva
Launched October 2005
End Dec 2007
300,000
End Oct 2008
5,190,195
End Dec 2007
12,250,512
End Oct 2008
37,747,507
Number of lenders
Average amount loaned per
Lender in EUROS
(includes re-loaned funds):
2,500
120
6,885
562
250,000*
49*
353,543
107
Number of loans funded
Number of microfinance
institution partners
500
2 providers 1
lender
3,079
20 (7 lenders, 13
providers)
19,250*
48*
67,543
88
Average interest rate for
lenders
Average Interest Rate for
borrows (APR after fees and
costs of intermediaries)
10.9%
12.7% p.a
0%
0%
n.a.
50%
20%
20%
Number of employees
9
Not available
Default rate
2%
22 in Denmark, 10
in Uganda
2-3%
24 full time, 9 part
time
1.25%
Value of amount loaned since
beginning in EUROS
* As of October 2007 no other data available
Source: annual report MyC4, press releases and www.kiva.org
Under 2%
Social Entrepreneurship
Selfless
Unconditional
Patience
Sustainability = Innovation?
FedEx – 700 aircraft, 44,000 motors, 4 million gallons of fuel every day,
FUEL SENSE Program (1. replacing old aircrafts, reducing fuel
consumption by 36%, capacity increase by 20%, 2. 30 software
programs to optimize aircraft schedules, flight routes, and extra fuel on
board, 3. 1.5 mega-watt solar energy system, 4. hybrid vans, 42% more
fuel-efficient)
Cisco – used equipment (costing 8 million USD to handle) to Recycling
Team (reuse rate jumps from 5% in 2004 to 45% in 2008, recycling cost fell
by 40% and the team becomes a profit centre of 100 million USD)
Clorox – Green Works 40% share of 200 Million USD Market( 15-25%
premium over conventional cleaners)
P&G – Tide Coldwater – 2%, 5% in 2002 to 21%, 52% in 2008 (British,
Holland Households), impact 80 billion fewer kilowatt-hours = 34 million
fewer tons of CO2)
CO2 + sea water = cement (coral)
Workforce entrants regard social responsibility and environmental
commitment as important criteria in selecting employers
Final Check
Business Model
•Value Proposition – any problem?
•Profit Formula – how to make the business sustainable?
•Key Resources – at what cost? any strategic partner?
•Key Process – by what means? any room for improvement?
•“CASH” Check: Cash, Access, Skill, Hour
•ask what your solution can do for the public?
•Cash (saving people’s money?)
•Access (provide access to / for?)
•Skill (skill enhancement?)
•Hours (saving people’s time?)
17
Social Entrepreneurship
Social Enterprise is a BUSINESS
http://video.google.com/videoplay?docid=-7538155516829693692#
http://www.youtube.com/watch?v=Tq0tan49rmc&feature=fvw
Hong Kong Cases
School of Hip Hop, Arts Alive and
City Challenge
Youth Outreach
Healthy Mothers-to-be
Kwun Tong Methodist Social Service
School of Hip Hop, Arts Alive and City Challenge
Youth Outreach
Interests or Strengths: Music, Dance, and risk-taking
Entrepreneurial spirit: Love what kids love, and empower them
Creative blend: Street dance, local and foreign cultures, synergy
among 3 SEs, from drop-outs to teaching classes in school
Scale-up: Corporate partnership and Regional competition
News:
http://www.youthoutreach.org.hk/hiphop/index2.htm
Healthy Mothers-to-be
Kwun Tong Methodist Social Service
Interests or Strengths: Post-natal mentorship, baby-sitting, and domestic service
Entrepreneurial spirit: One client (family) at a time, strong sense of ownership
Creative blend: Traditional wisdoms, modern healthcare knowledge, and intergenerational socialization
Scale-up: Extend the service from post-natal to nursery (children, age 1-6)
News:
http://www.labouraid.org/maternity/
http://hk.news.yahoo.com/article/091011/3/emxr.html
Social Innovation
Key Learning points:
•Bottom-up
•Turn interests or strengths into business ideas
•Put ideas into actions by those interested parties
•Leverage resources (tangible and intangible)from
Government, NGOs, and Corporations
•End-users and customers focused
•Not just one or two entrepreneurs, mobilize the
whole team!
Funding Sources
Section 88 – charitable organization
http://www.ird.gov.hk/chi/tax/ach_tgc.htm
申請者必須是《稅務條例》(第112章)第88條所界定具有慈善團體身分的非牟利
機構。
Funding one: 民 政 事 務 總 署 推 行 "伙 伴 倡 自 強 "社 區 協 作 計 劃
http://www.had.gov.hk/tc/public_services/en_self_reli/index.htm
每 項 核 准 計 劃 最 多 可 獲 得 300 萬 元 的 資 助 。
有 關 的 計 劃 須 在 申 請 獲 批 後 六 個 月 內 開 始 實 際 運 作 ; 資
助 期 不 多 於 兩 年 。
Funding two: 「 創 業 展 才 能 」 計 劃
http://www.swd.gov.hk/tc/index/site_pubsvc/page_rehab/sub_listofserv/id_
enhancinge/
殘 疾 僱 員 在 每 項 業 務 中 所 佔 比 例 由 不 少 於 受 薪 僱 員 總 數
60% 改 為 不 少 於 受 薪 僱 員 總 數 50%
用 以 支 持 業 務 最 初 營 運 的 資 助,一 般 從 業 務 開 展 起 計,
由 最 多 為 期一年 改 為 最 多 為 期 兩 年,而 每 項 業務 最 高 200萬 元
款 額 的 規 定 則 維 持 不變。
Funding Sources
Funding Three: 社區投資共享基金
http://www.ciif.gov.hk/tc/whatsnew/index_c.html
截至第十五期基金共批出計劃: 約200個, 基金共批出金額: 約2億元
受資助計劃的成效:
- 20 000名人士由受助到助人
- 超過5 000名人士因提升自信和能力而可以重投勞動市場
- 支援14 000多個家庭, 成立20個合作社
- 動員超過4 700個合作夥伴,其中約三分之一為商界夥伴
Funding Four:環境及自然保育基金
http://www.ecf.gov.hk/tc/home/index.html
基金自1994年成立以來,合共資助超過1,000個項目,批出撥款約2億元。
Funding Five:活化歷史建築伙伴計劃
http://www.heritage.gov.hk/tc/rhbtp/application_arrangements.htm
Funding Six: 工業貿易署 - 中小企業發展支援基金」
http://www.tid.gov.hk
中小企業發展支援基金 (基金) 旨在資助非分配利潤的支援組織、工商組織、
專業團體及研究機關,推行有助提升香港整體或其個別行業的中小企業的競爭
能力的項目。
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