Social Enterprises and Enhancing Self-Reliance Through District Partnership Programme

1. Social EnterprisesandEnhancing Self-RelianceThrough District Partnership Programme

2. 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

3. 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

4. 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 ) Source: Census and Statistics Department

5. 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

6. 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

7. Enhancing Self-Reliance Through District Partnership Programme(the Programme) Background • 2006-07 Budget • $150 million over the following five years to strengthen district-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

8. 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 profits earned • To reinvest the profits earned principally in the business or in the community

9. 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

10. 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 Tung Chung. • Achieve social objectives • Include enhancing the skills and employability of the socially disadvantaged and their self-confidence as well as promoting community integration

11. Distribution of Businesses of the Approved Projects 11

12. 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 and goods donated by manufacturers • Provide daily necessities to the elderly poor and Comprehensive Social Security Assistance (CSSA) recipients • Social Objectives • Provision of jobs, enhancing their employability and participating in social economic activities

13. The officiating guests at the opening ceremony The store of about 1 000 square feet provides a wide variety of goods

14. 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

15. Mrs Mc Dessert in Olympian City

16. 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

17. 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%

18. Challenges of Poverty Prevention and Alleviation • Widening wealth gap • After netting the effects of taxation and social benefits on household 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

19. 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

20. 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

21. How can the Business Sector support SE: • The Social Enterprise Partnership Programme, currently launched by HAD • Provides a matching forum through which business organisations interested in providing support services can partner with non-governmental organisations • For information, please contact HAD

22. Thank you！