Eco-system of Social
Enterprise in Hong Kong
Dr. Kam-tong CHAN
Centre for Third Sector Studies
Department of Applied Social Sciences
The Hong Kong Polytechnic University
ssktchan@polyu.edu.hk



Development of SE in Hong Kong
The Delphi Study 2012-2014
Findings: Enabling context for development
of SE in Hong Kong
◦ Contextual Level
◦ Institutional Level
◦ Operational Level


Some barriers
Policy suggestions

1980s-90s : Exploratory period
◦ “Simulated business” by some NGOs – provide employment
opportunities (1980s)
◦ Set up social enterprise to solve social problems (e.g. Senior
Citizen Home Safety Association)

2000s : Government policy-oriented
◦ Economic downturn and emergence of poverty and
unemployment problem
◦ Adopted “welfare-to-work approach” by government
◦ Funding schemes provided
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Mid-2000s to now : Diversified development

Lack of financial sustainability by social enterprise operated
by some NGOs

Emergence of Social Entrepreneurship
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Emergence of platform organizations (some examples)
◦ Diversification of social enterprise objective
◦ Business model and social innovation
◦
◦
◦
◦
◦
HKCSS-HSBC Social Enterprise Business Centre (2006 / 2008)
Social Ventures Hong Kong (2007)
Hong Kong Social Entrepreneurship Forum (2008)
Hong Kong General Chamber of Social Enterprises (2009)
The Good Lab (2012)
5
2006
ƒ
%
2010
ƒ
%
2013
ƒ
%
（1） Rehabilitants
（2） Community residents
24
18
57.1
42.9
22
20
48.9
44.4
18
22
38.3
46.8
（3） Women
（4） Unemployed
（5） Elderly
（6） mid / low income earners
25
21
21
22
59.5
50
50
52.4
23
20
11
19
51.1
44.4
24.4
42.2
17
15
14
20
36.2
31.9
29.8
42.6
（7） Children and youth
22
52.4
16
35.6
19
40.4
n
42
45
47
6
2006
%
（1）Food and Catering
（2）Production and sales
2010
2013
Mean
Unit
35.7
1.7
Mean
Unit
40.5
1.9
Mean
Unit
27.7
2
45.2
2.4
35.7
2.6
44.7
2.8
1.9
31
2.5
12.8
1
1.5
3.2
16.7
21.4
1.3
2.4
17
12.8
1.9
1.5
n.a.
7.1
1
12.8
1
n.a.
n.a.
42
n.a.
14.9
47
1.6
（3）General cleansing
42.9
services
（4）Personal care services
19
（5）Domestic services
35.7
（6）Eco-Tourism guide
n.a.
services
（7）Resources Recycling
n.a.
n 42
%
%
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Report on the enabling environment in Europe
for our reference
5 major types of supportive measurements for
creating the enabling environment for social
enterprise development:
◦
◦
◦
◦
◦
Legal Regulation
Financial Support
Business Support
Measures fostering co-operation
EQUAL Community Initiative (financed by European
Social Fund and EU Member States)
Source: Heckl, E. & Pecher, I. (2007), Study on Practices and Policies in the Social Enterprise Sector in Europe.
Final Report. Vienna: KMU Forschung, Austria
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PPR research from 2012-2014
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Delphi approach
◦ Identify the essential factors, including the drivers,
enablers and barriers, for creating an enabling
environment for the development of social enterprises
◦ Conduct through Delphi Technique and Stakeholder
Interview
◦ Grounded approach on identifying the enabling
environment through the expert-led panel
◦ Involve experts of academics and practitioners from both
Hong Kong and overseas
◦ Important tool for identifying enabling environment for
social enterprise development in Hong Kong context
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Result from the experts in Delphi Approach:
3-level-framework of enabling context/
environment
Contextual Level
• e.g. environment mindset
Institutional Level
• e.g. political mindset
Operation Level
• e.g. operational mindset
Enabling context and policy for social entrepreneurship in Hong Kong
Institutional level
Q 1 - Essential Elements
Q2 - Significant Factors
Institutional framework and conditions conducive to the
development of social entrepreneurship
1. Government Policies and Government have a bird view
measures
towards the holistic
a) Policy environment in understanding of social
favor of SE
entrepreneurship, and not just
b) Policy to support
focus on one aspect such as
innovative ideas and funding
trials
c) Eco-system approach Historical and developmental
and holistic mindset
context of societies – active
d) Public procurement
support in the initial phase but
policy
should maintain proper distance
e) Integrate existing
between government and social
policies and
economy
resources by
government
Rainforest Canvas Model??
departments
f) Supportive platform
by the government
g) Provide seed money
for starting up
/affordable premises
Branding & SE certification
/accreditation
Q 3 -Hindering Factors
Q4 – How Hindering factors
can be removed
Factors which hinder the development of social entrepreneurship
and the way out
lack of government recognition
Government’s support and
and support
encouragement & reduce the
hindrance of the structure
reluctance of government and
private funds for funding SE
All rounded policy directive in
addition to the 5 billion fund
SE has not been included into the
policy agenda
Re-training for NGOs, teachers
and other stakeholders
Government policy not taking a
holistic approach
Convincing political parties and
policy makers about the
Government’s role
potential of SE
- direct control and too
much discretionary
Transparent framework for
intervention of
monitoring and evaluation on
government and social
public resources exchanges
economy
- lack of co-productive role (Japan) should strengthen co(in Japan –government
productive role of government
designed, top down and
institutional nonprofit
intermediary
organizations)
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Enabling environment
◦ Contextual Level (Perceived environment and values)
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Aspiration to do good and do well
Clear social objectives
Commitment to problem-solving
Holistic and change-driven mindset
◦ Contextual Level (Public understanding)
 Positive representation of social enterprise in media to
attract cross-sector and public support
◦ For the discussion on social objective, it can be
contributed to multiple social problem and should focus
on specific least disadvantaged groups

Enabling environment
◦ Institutional Level (Cross-sectoral collaboration)
 Trust, mutual respect and support among stakeholders
in government , private , civil society and academic
sectors
 Provide supportive and holistic eco-environment for
social enterprises
 Provide supportive and integrated policies and
resources by governmental organization
 Provide skills development and capacity building
◦ Trust among such collaboration is by earning but
not by default
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Enabling environment
◦ Operational Level
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Leader to provide vision
Committed personnel is in place
Commitment to build infrastructure and products
Specific skills for business management and
knowledge transfer
◦ Most of them are agreed by both Delphi expert and
Interviewees
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Lack of successful cases
Unable to find good personnel to operate
social enterprise

High rental and operating costs
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Inability of social enterprise to innovate
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Contextual Level
◦ Public education on social enterprises
◦ Promotion of ethical consumption
◦ Promote the ethos of social innovation
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Institutional Level
◦ Promote trust among different sectors

Operational level
◦ Strengthen capacity building
◦ Demonstrate SE’s social impact to the society
Thank you!