Social Innovation & Entrepreneurship

Richard CHOW Deputy Head, HKCSS-HSBC Social Enterprise Business Centre

The Hong Kong Council of Social Service

MAKE MONEY

CHANGE THE WORLD

What you can get from me?

• Social Innovation & Entrepreneurship

• Landscape & development of SEs in HK

• Your opportunities

Social

Innovation

• “I can’t define it, but I know it when I see it.” – Potter Stewart, U.S. Supreme Court Justice

SOCIAL + INNOVATION

= SOCIAL INNOVATION

INNOVATION /ɪNƏˈVEɪƩ(Ə)N/

What is Innovation? (1)

• A process

– Individual creativity

– Organizational structure

– Environmental context

– Social and economic factors

• How to produce more and better innovation?

What is Innovation? (2)

• An outcome

– New products

– Product features

– Production methods

• How to predict which innovation will succeed?

What is Innovation?

• Novelty – Technical

– Social

– Economical

• Improvement vs existing solutions – More effective

– More efficient

– More sustainable • Earth

• Itself

What is Innovation?

Process Product Diffusion

Adoption

Value creation

What is Innovation?

• A novel solution to a problem that is more effective, efficient, sustainable than existing solutions.

SOCIAL /ˈSƏƱƩ(Ə)L/

What is Social?

• Motivation / intention – Non-private value

• Legal category – Social Sector

• Description – Justice / Fairness / Environment / Health / Arts /

Culture / Education

• Distinction – Non-financial / Economical value

What is Social?

What is Social?

What is Innovation?

• A novel solution to a problem that is more effective, efficient, sustainable than existing solutions.

What is Social Innovation?

• A novel solution to a problem that is more effective, efficient, sustainable than existing solutions and for which primarily benefiting the society as a whole rather than private individuals.

Which is Social Innovation?

Which is Social Innovation?

Which is Social Innovation?

Social

Enterprises

Source: http://www.4lenses.org/

1st Type of SE: WISE

• Work Integrated Social Enterprises

iBakery: Tung Wah Group of Hospitals http://ibakery.tungwahcsd.org/

2nd Type of SE: Good Products

• Products/Services that carrying social benefits

Senior Citizen Home Safety Association http://www.schsa.org.hk

3rd Type of SE: Good Values

• Expertise run professional business that promote social values

Green Monday http://http://www.greenmonday.org.hk/

Social problems…

What is Social Entrepreneurship?

Entrepreneur who attempts to tackle social problems through a sustainable business solution

• A legal structure

• Intended to benefit the community

• Adapt an Asset lock

• Adapt a dividend payout cap (35%)

• A benchmark

• Conduct a Social Impact Assessment

• Incorporate

• Sign the B-Corp Declaration of Interdependence

• No legal structure for SEs

• Anyone can call themselves a SE

• SE Directory (HKCSS) - CIC definition

• SE Endorsement

(HKGCSE) - Assessment

527 - 2014-15 62% Section 88

Source: Power of Good, Hong Kong Social Enterprise Landscape Study 2012-13 by SEBC/HKCSS

SE Landscape in HK

Bridging Social Capital Innovate ．Invest ． Incubate

Who we are? • HKCSS-HSBC Social Enterprise Business

Centre (SEBC) is to advance social

entrepreneurship.

• Publisher of SE Directory which is endorsed

by Home Affairs Department

• We at SEBC are committed to bring good

value and returns to our business partners.

• Non-profit organization

Business Partners

Talent – Social Angels & Incubation Program

• work with corporate partners and professional associations, recruit ‘social angels’ to offer

free business advisory service. More than 50 SE projects received in-depth, practice-

based support from SEBC

• New business models (e.g. Happy Veggies) incubated, spilling over positive impact on

the society

Finance – DBS SE Advancement Grant

• 24 SEs benefited, more than 130 jobs created for the deprived groups, 80%

of participating SEs recorded a double digit sales growth after joining the

scheme

Objective: - an one-stop support platform to incubate

social entrepreneurs and innovative ideas.

Funding achievement (Q1-Q2): - Launching Date: 21 April 2015

- No. of Application received: 51

- Total requested funding amount HKD25 Millions

Finance – Impact Incubator

Low income family

Employment for disadvantaged

groups

Improve living quality

Life coaching /career

planning Elderly care

Youth development

Ethnic minority

Poverty Relief Impact

• The measurement of social

impact – E.g. Monetised Assessment; Non-

monetised Assessment like Output,

Ultimate Targets' well-being

• A process of analyzing,

monitoring and managing the

social consequences of the

deliverables of social service

projects.

• Practitioners and policymakers,

and the public, can be better

informed for the planning of

future social services.

Support – Social Impact Assessment

Space – GoodPoint

• Obtain space at preferential rate to SEs, so as to enhance their capacity

• 1st showcase at Flower Market, in collaboration with 4 operators from NGO and

business sector

• This model will be replicated in other locations in HK

Changemakers Incubation – ACT Social Awareness Network

• work with over 80 grassroots organizations and SE

to organize social experiential programmes for

students, corporate staff and public on different social

issues such as poverty, social inclusion,

environmental protection

• More than 9,000 individuals participated the

programmes. Many got inspired and took follow up

actions, such as make donation, join volunteering

service after these programmes

Business Network – Good Goods (B to C, B to B Sales Platform of SE products)

• Establish a SE sales platform to bring new business opportunities to over 35 SE partners

and grassroots organizations

• Sales performance of SEs enhanced after joining the platform. E.g. $100 SE gift coupon

brings extra $30 spending for an SE

• Promote responsible consumption to corporate customers, with large corporations

being engaged e.g. JP Morgan, MTR, Asiamiles etc.

Our Innovations…

We incubate

Projects supported

Name of projects: Project summary: Targeted social problems:

RunOurCity

•Using long distance running to help youth improve their

health, confidence and stamina.

•RunOurCity believes running will help to bring positive

changes to their lives.

•6500 youth will be benefited in 3 years, more than

102000 runners engaged in races in 3 years.

•Save preventive education expenses for government on

youth sector such as health and drug addicts.

•Rising anger and

hopeless feelings of

youth in recent

years.

•Health problem of

teenagers.

Projects supported

Name of projects:

Project summary: Targeted social problems:

DOMAT

•一間非牟利建築設計事務所計劃提供切實的解決方案，通過創新的設計和家居改造，致力為香港持續的住屋問題提供創新的解決方案。

•改善香港三種貧困社區的房屋，包括劏房，寮屋區和漁民合作社房屋。

•提高貧困社區的生活水平。

Projects supported

Name of projects:

Project summary: Targeted social problems:

Teach4HK

•良師香港由一群熱心教育的青年人於2013年創立，目標為招募具熱誠和領導才能的大學生，參加為期一年的教學及領袖培訓項目，全職到較多基層學生的學校服務。

•良師香港致力與商界及教育界（大學院校、中學校方）機構多元合作，一方面為項目老師提供專業培訓和領導力及職業發展機會，希望培育項目老師成為關懷社會的明日領袖，他日在社會各崗位上發揮影響力為教育作貢獻。

•低收入家庭學生接受高等教育機會不足

•難以吸引人材投身教育界

SO YOU WANT TO HELP……

CONSUME

Be an Intra-preneur

WORK in SE industry

SE

Media

Education

Platform

Trades

Funder Incubator

Competition

HR

Certification

Be an Entrepreneur

Identify

- unmet social needs

- untapped community resources

Diamond Cap

How to start a social enterprise

– Acquire major skills

– Establish network

– Solicit fund

– Evaluate social impact

ONE MORE THING

1800s

Care for employees

1900s

Philanthropy & CSR

1990s

Sustainability & ESG

2010s

Creating Shared Value

What is CSR?

1. Societal responsibilities

2. Companies increase value

3. Compliance +

4. Philanthropy +

5. Shareholder

6. Illegality is fine

7. PR ‘gimmick’ +

Michael Porter Mark Kramer

Harvard Business Review

The Link between Competitive Advantage and CSR December 2006

Creating Shared Value January 2011

Creating Shared Value (CSV): Making the right kinds of profit that create societal benefits rather than diminish them

What are societal benefits? • Control carbon emission • Improve working quality • Support community development • Boost local economy • Avoid water pollution • Screen for child labour • Ethical marketing practices • Promote diversity • etc.. • etc....

CSR CSV Missions of business

https://hbr.org/2011/01/the-big-idea-creating-shared-value Borgonovi et all (2011); Mohammad Fahad, ABBASI, MBA GGSB, France, http://www.slideshare.net/abbasifahad/creating-shared-value-25886227

Reconceiving Products and

Markets

Enabling Local Cluster

Development

Redefining Productivity in the

Value Chain