Enterprise plan to cut dole queue
Poverty commission inspired by similar project for disabled
The Commission on Poverty will encourage development of 'social enterprises' to create jobs for welfare recipients and encourage them to join the workforce.
Sources close to the commission, which is chaired by Financial Secretary Henry Tang Ying-yen, said the idea would be discussed at its next meeting on Monday.
If commission members endorse it, seeding grants would be given to non-governmental agencies for setting up businesses to provide jobs for the disadvantaged.
It is understood the commission was inspired by the success of a similar $50 million project for the disabled included in the 2000-01 budget.
Up to June, the fund has helped launch 31 businesses and created 396 jobs, of which 290 were taken by the disabled. By employing a combination of disabled and able-bodied workers, welfare agencies found that the businesses helped the disabled to improve their self-image and acquire new skills.
The Mental Health Association - whose mission is to help reintegrate former mental patients into the community - started convenience stores, household goods shops, direct sales and other businesses through subsidiary MentalCare Connect.
Executive director Chung Wai-shing said that in one project, the company used about $700,000 in government grants to open four shops, employing about 70 workers, of whom 10 used to be on welfare. By employing them, the company saved the government about $500,000 a year in welfare payments, he said.
While 'social enterprise' is a relatively new concept in Hong Kong, it has a long history in many countries. In the United Kingdom, they are defined as ventures driven primarily by social objectives rather than profit, and their surpluses are principally reinvested in the operation or in the community.
Mr Chung, who is a trained social worker, said his company tried to be profitable and employed professionals managers. But it also tried to employ as many former mental patients as possible to fulfil its mission.
The Commission on Poverty is understood to be encouraged by the fact that some social enterprises have succeeded in helping able-bodied people previously on the dole get back on their feet.
The government is particularly concerned that the proportion of people receiving welfare due to unemployment, low earnings and single parenthood had increased from 11.3 per cent in 1994 to 34.5 per cent last year - and these are able-bodied individuals who have the ability to work.
If the trend continues, the growing welfare budget will become a huge burden on the public purse, and these welfare recipients' prolonged withdrawal from the workforce will affect their self-image and that of their children.
