Social Enterprises

and

Enhancing Self-RelianceThrough District Partnership Programme

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Content

Contact Me Wealth Gap in Hong Kong Hong Kong’s Labour Market Social Enterprises in Hong Kong Challenges of Poverty Prevention and Alleviation Support from the Business Sector

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Contact Me Professor CHEUNG Yan-leung, Stephen

Chairman of the Advisory Committee for Enhancing Self-Reliance Through District Partnership Programme (the Programme) under the Home Affairs Department (HAD)

Address: Department of Economics and Finance Faculty of Business P7410, Purple Zone, Academic Building City University of Hong Kong

Telephone no.: 2788 7960

Fax no.: 2788 8040

E-mail address: efsteven@cityu.edu.hk

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Poverty Situation: Gini Coefficient

Gini Coefficient (based on household income before netting the effects of taxation and social benefits)

Gini Coefficient (based on household income after netting the effects of taxation and social benefits )

Year 1981 1986 1991 1996 2001 2006

Gini Coefficient

0.451 0.453 0.476 0.518 0.525 0.533

Year 1996 2001 2006

Gini Coefficient

0.466 0.470 0.475

Source: Census and Statistics Department

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Profile of the Unemployed Population

Higher unemployment rate among the younger age group

Higher unemployment rate among the less educated

The unemployed population comprises mainly of non-skilled workers, such as those from the construction and manufacturing industries

Structural unemployment, making it difficult to find suitable jobs despite economic recovery

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Demand for Human Resources

Decreasing demand for the less educated

Increasing demand for professionals and paraprofessionals

Service-led economy

Mismatch of the skills of the unemployed and the

demand of the job market

Retraining

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Enhancing Self-Reliance Through District Partnership Programme

(the Programme)Background

2006-07 Budget $150 million over the following five years to strengthen d

istrict-based poverty alleviation work and assist socially disadvantaged groups to gain self-reliance

HAD established the Programme in June 2006 to implement the above initative

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What is Social Enterprise? To run the business mainly through generating revenue

from the provision of services or products Sustainable development and self-financing basis

Social objectives Providing the needed services or products

• E.g. Support service for the elderly Creating employment and training opportunities Funding its other social service organisations through the pro

fits earned

To reinvest the profits earned principally in the business or in the community

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Objectives of the Programme

Promote sustainable poverty prevention and alleviation efforts at the district level Helping enhance self-reliance, Targeting socially disadvantaged groups.

Increasing the skills and capacities of the employable and providing opportunities for the disadvantaged and to be effectively integrated into the community

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Implementation

Approximately $50 million to about 50 SE projects creating about 1 000 jobs for the socially disadvantaged.

Many of them are implemented in less well-off districts Kwun Tong, Sham Shui Po, Tuen Mun, Yuen Long and Tu

ng Chung.

Achieve social objectives Include enhancing the skills and employability of the social

ly disadvantaged and their self-confidence as well as promoting community integration

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Distribution of Businesses of the Approved Projects

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批核數目(百分比)

Eco-tourism7%

Beauty Care & Hairdressing/Massage/Manipulation (tui-na)

13%

Others (including escort service for out-patients,

graphic design, job referral, fabric production, etc.)

11%

Household Services/ Fitting-out Works

7%

Retailing17%

Catering/Cafe 19%

Waste Recycling/Second-hand Shops

13%

Entertainment/Programme Production

7%

Elderly Services6%

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Social Enterprise: Case (1)

The Salvation Army – Tuen Mun “Family Store”

A grant of $900,000 from the Programme

Creation of about 11 jobs

A family store in Tuen Mun Sell at medium to low prices second-hand articles collected a

nd goods donated by manufacturers Provide daily necessities to the elderly poor and Comprehensi

ve Social Security Assistance (CSSA) recipients

Social Objectives Provision of jobs, enhancing their employability and partici

pating in social economic activities

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The officiating guests at the opening ceremony

The store of about 1 000 square feet provides a wide variety of goods

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Social Enterprise: Case (2) Tung Wah Group of Hospitals – Mrs Mc Dessert

A grant of $960,000 from the Programme

Creation of about 28 jobs

Theme Dessert Shop

Also selling McDull products and providing online retail and delivery services

With the support of Regent Lane Ltd, the sole distributor of the Yellow Bus Magazine, McDull products are sold at wholesale price and McDull short videos are shown in the shop

Concessionary rent offered by the Olympian City Management Company under the Sino Group

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Mrs Mc Dessertin Olympian City

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Other Government Supports

A pilot scheme is being implemented by the Government to facilitate SE Bidding 38 government cleansing contracts Cover all 18 districts and involve 19 departments

Government’s commitment to promoting the development of SE

The contract sum amounts to about $17 million, providing more than 300 employment opportunities for SE

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Challenges of Poverty Prevention and Alleviation

Government handouts ≠ Poverty alleviation Improper handouts = Poverty creation

Incentives for the unemployed to re-enter the job market

Persistent inflation The poor, in particular, suffers from price inflation

Inflation rate in January 2008 was 4.3%

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Challenges of Poverty Prevention and Alleviation

Widening wealth gap After netting the effects of taxation and social benefits on hou

sehold income, the Gini Coefficient is still on the rise for the past decade

Any prospect of upward social mobility?

Hope for the poor Equal opportunities

Reducing intergenerational poverty

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Challenges of Poverty Prevention and Alleviation

Concerted efforts of the business sector, the Government, non-governmental organisations and individuals Business sector: corporate social responsibility

Government: SE, retraining Individuals: self enhancement

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Business Sector’s Support for SE

Support through the following channels:

Outsourcing to SE certain operations (e.g. cleansing services)

Providing SE with concessionary rental of their property (e.g. shopping malls or factory premises)/vacant land (e.g. agricultural land for organic farming)

Partnership with SE (e.g. technical support and staff training)

Financial support to SE

Mentorship Scheme: providing SE with voluntary professional and business advisory services

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How can the Business Sector support SE:

The Social Enterprise Partnership Programme, currently launched by HAD Provides a matching forum through which busine

ss organisations interested in providing support services can partner with non-governmental organisations

For information, please contact HAD

Thank you！