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There is no common definition of social enterprises. The U.K. definition is -
“A business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business 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)
Background and mode of operation of social enterprises are very diverse. One key distinguishing feature of such enterprises is simultaneous pursuit of both a commercial and a social purpose.
Objective of promoting social enterprise
To help the unemployed to move from welfare to self-reliance. While not underestimating the limitations for social enterprises to flourish in Hong Kong, they offer work opportunities in a real-work environment and help prepare the less competitive to transit to work in the open labour market. Some offer the possibility of direct job creation and permanent employment opportunities.
Success factors of social enterprises
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A real enterprising spirit and mindset, professional and business management skills.
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A willingness to not only empathise with the disadvantaged but also to set high expectations for them as contributing individuals of the community, thereby helping their genuine integration into the labour market.
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Community understanding and support.
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Government facilitation especially in formulating a package of ringfenced support measures which provide conducive environment for social enterprise development but without nurturing a dependency culture which would blunt their market sensitivity and displacing Small and Medium Enterprises (SMEs).
How does the Commission on Poverty promote social enterprise?
(i) Establish the value and public acceptance
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To conduct research on social enterprise development; and
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To organize forums to further the understanding on social enterprise, and to involve the business sector and the wider community in considering the potential of using social enterprise to assist the able-bodied unemployed.
(ii) Policy facilitation
To provide an enabling environment for social enterprises, including -
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To propose to relax the existing requirement, under the Enhancing Employment of People with Disabilities through Small Enterprise Project, for an applicant's workforce to comprise more than 60 per cent of disabled people before qualifying for a grant to enable social enterprises to expand their business activities and allow more unemployed and disabled persons to benefit;
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To enable social enterprises to enjoy the support services now generally available to SMEs; and
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Subject to the principles of transparency, fairness and value for money, to facilitate participation by social enterprises in tenders for government contracts.
(iii) Business facilitation and support
- To work with the SMEs Committee and extend the existing support for SMEs to social enterprises;
- To reinforce the district-based approach in alleviating poverty by providing additional resources to districts, including consider funding source in support of start-ups of social enterprises for disadvantaged groups other than the disabled; and
- To nurture and empower social entrepreneurs through training, facilitating business-mentoring network and sharing of international best practices, etc.
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