Social enterprises deserve support

Social enterprise was still a novel idea to Hong Kong until 14 years ago, when it began to take root. Today, few people have not heard of it, though many probably still confuse it with charity or corporate social responsibility. A social enterprise is characterised by its dual aims: to achieve social missions as well as commercial sustainability. It adopts business principles to improve human and environmental well-being. But instead of shareholders pocketing the profits, the money earned is mainly used to further pursue its social objectives.

Despite a relatively short history, there has been good progress. Thanks to various government funding schemes, the number of social enterprises has increased from 260 to more than 450 over the past six years. It translates into 63 companies for every one million residents, compared to 43 in Taiwan and 33 in Singapore. The scope of business is also more diversified. A survey on social enterprises last year showed three in five were able to break even or make a profit in 2012. But just as in other businesses, there are vulnerable ones. Some could not meet their targets and folded.

Speaking to this newspaper, a member of the taskforce overseeing the Social Innovation and Entrepreneurship Development Fund urged the government to set a more ambitious target by boosting the current business turnover from an annual HK$1.1 billion to HK$10 billion in the coming decade. Whether a target is needed for better development is something the community can discuss. But the government and business sector can certainly join hands to do a lot more on this front. The benefits go beyond helping the needy. Some 3,200 jobs have been created under the two government funding schemes set up to enhance self-reliance among the disadvantaged and underprivileged. For every dollar spent on supporting social enterprises, it is estimated that four to seven dollars worth of workfare can be generated. Given Hong Kong is as much a business city as a caring society, the potential for social enterprise development is enormous.