The Society of Rehabilitation & Crime Prevention, HK Bright Services Company

1. The Society of Rehabilitation & Crime Prevention, HKBright Services Company November 1, 2005

2. Program • History & Development of BS • Achievements • Experiences • Challenges • Future of BS

3. History & Development • Start from a concept of social investment • 1999 - $5M from JCCT for 2 yrs • $5M used for 6 yrs (till Sep. 2005) • Start from removal services • 3 main businesses: removal, cleaning and logistics • Other businesses: dog training, repair and maintenance

4. 1 Manager 2 Clerks 2 Team leaders cum drivers 2 Team leaders (supported by other fund) Core workers Trainees 1 – 10-ton 2 – 5.5-ton 2 - van History & Development

5. History & Development • Major business partners • Park’N Shop • Kowloon Motor Bus • Labor Department • Trade Development Council

6. Achievements • Monthly income: $270K • Monthly Gross surplus: $90K • Job opportunities for 90 persons • Ex-offender 1:2 Unemployed • 800 man days / average 9 days per worker • A total of HK$180K as salary (not including salaries of full time staff) • Average monthly salary: $2K • Full time worker ($5,000↑) – 10 • Part time worker ($3,000) – 20

7. Achievements

8. Experiences • Concept of social disability • Employee structure • Business Vs welfare principles • Business development strategy • Social enterprise not a cure-all • Specialist Vs generic employment services

9. Social Disability • Social Vs Physical Vs Mental Disability • Offenders Vs Unemployed • Motivation and productivity issues • Low level of social acceptance

10. Employee Structure • Management & administrative staff • Team leaders cum drivers • Core workers Vs Trainees • Work in transition – expecting workers to leave BS if ready • Employee perception – BS as welfare service?

11. Business Vs Welfare Principles • Earning money to support services • Business as training ground • Looking for real business but not special treats • Dilemma of Costing – minimizing cost to maximize profit?

12. Business Development Strategy • Issues of Investment • Lack of Experience and Expertise • Management Orientation

13. Social Enterprise not a cure-all • Social enterprise is a critical and necessary element of employment services • A full spectrum of employment services required and provided by SRACP

14. Specialist Vs Generic Services • Recognizing special needs and characteristics of a specific target group • Recognizing expertise: knowledge and skills consolidated to effectively help our target group

15. Challenges • Challenges to NGOs • Challenges to social workers • Challenges to business sectors • Challenges to BS

16. Challenges to NGOs • Initial setup cost: tangible and intangible • Burden to breakeven • Lack of business experience and expertise • Difficulty of recurrent investment • Temptation to treat social enterprise as a mere business or service

17. Challenges to social workers • A business mind required? • Training and coaching issues

18. Challenges to business sector • Opportunities with large business • Competition with SME? • Social enterprise is SME • Social responsibility is the backbone of Social Enterprise • Competition is there but would be fair

19. Challenges to BS • A welfare mind to manage a business? or • A business mind to manage a welfare service?

20. Future of BS • Myth of Breakeven Point • Business strategy

21. Myth of Breakeven Point • Operating deficit as investment? • Idea of maximization: profit Vs beneficiary Vs outcome, which comes first?

22. Business Strategy • Consolidating main businesses • Developing new businesses • Partnership with NGOs and businesses • Looking for long term business relationship • Emphasizing quality – avoiding lowest price approach

23. Thank you very much!