-
Mrs Patricia Lau
Deputy Head, Efficiency Unit
Chief Secretary for Administrations Office Hong Kong Special
Administrative Region Government
Social Innovation and Entrepreneurship Development Fund
Asian Venture Philanthropy Network 20 April 2015
-
Agenda
Government Support and Landscape
SIE Fund Overview
Objective and positioning
Cross-sector collaborations
Strategy going forward
-
Government Support in the Last Decade
Provide over HK$8.7bn in seed grants for projects
Enhance public understanding e.g. SE Summit
Promote cross-sector collaboration
Nurture more social entrepreneurs e.g. SE
Challenge
-
Current Landscape
Social objectives
Capital sources
Non-charity operator of SE projects
(181%)
disadv. = disadvantaged
269 320 329
368 406
457
2008-09 2009-10 2010-11 2011-12 2012-13 2013-14
SE projects
(70%)
* Published by the Hong Kong Council of Social Service and The
Chinese University of Hong Kong
-
They expect more supporting measures to build up their
capacity
53% More training opportunities
provided to staff 50% Organisations &
corporations adopt responsible
procurement policy
48% Enhance
public education
43% Increase financing channels
* According to the Hong Kong Social Enterprise Landscape Study
2012-13
Wish list from Social Entrepreneurs
-
Agenda
Government Support and Landscape
SIE Fund Overview
Objective and positioning
Cross-sector collaborations
Strategy going forward
-
SIE Fund Who are we?
Commission on Poverty
Special Needs Groups Task Force
Community Care Fund Task Force
Youth Education, Employment and
Training Task Force
Social Innovation and Entrepreneurship Development Fund Task
Force (TF)
-
Objectives of the Fund
To establish and support processes,
schemes and experiments that attract, inspire
and nurture social entrepreneurship to
introduce and develop innovations that create
social impact and build social capital to
support poverty relief in Hong Kong
A HK$500 million Trust Fund intended to tackle poverty and
prevent social exclusion through social innovation
and entrepreneurship
SIE Fund What is it?
-
SIE Fund What is our position?
We see ourselves as a catalyst to
Build sustainable platforms in community
Stimulate cross-sector collaboration
Build bigger impact and not to crowd out
Experiment, incubate and implement innovative ideas
Share and learn from experience
-
SIE Fund How it works?
Fund initiatives under 3 priority areas
Research
Capacity building
Innovative programmes
Engage intermediaries to design and implement
Create flagship projects
Outreach to various sectors and public
-
Expected Outcome
2,700 participants
700 ideas
100 projects
Cross sector collaboration
SIE Funds Intermediaries
-
Idea generation
Prototype
Start-up
Scale-up
Matching in cash
or in kind
Other forms or funding (e.g. loans, equity) will be explored in
future tranches
Cross sector collaboration
SIE Funds Intermediaries
For Innovative Programmes
-
Businesses
Food support operators
SIE Fund
Task Force Professionals
Government
Idea Generation Workshop
Recommendations considered by SIE Fund Task Force
Sharing Session &
Experience Visits
Engage 40+ participants to co-create ideas
Cross sector collaboration
Food Support Flagship
-
Educate and build awareness amongst
businesses
Support integration of shared value into
existing businesses
Implement business plans as demonstrations
Business opportunities
and challenges
Business assets and expertise
Social needs
Shared Value
Cross sector collaboration
Shared Value
-
Social Innovation Video Competition for
Secondary School Students
Cross sector collaboration
Outreach campaign
20 sponsors / supporting organisations
9 speakers sharing in workshops or other
events
13 adjudicators
Involving NGOs, social entrepreneurs,
academics, businesses and representatives
from media, travel, film industries
-
Strategy Going Forward
Social
Innovation
Hub
Sector /
Segment
Leaders Idea /
Solution
Bank
Results - Intermedy / Flagship
Shared
Value
Raise
Awareness
& Support
-
Lesson learnt
1. Many property are underutilized.
2. Many landlords want to optimize their property for the
needy.
Neither the market nor the government have provided them
with a mechanism.
3. Neither affordable housing nor social work alone is
effective.
-
2
Many social enterprises in Hong Kong few that scale
Idea Proof of concept
Ready for early scale
Ready for breakout scale
End-game
SE pipeline
Soci
al e
nte
rpri
ses
?
Mile
sto
ne
s Entrepreneur has idea for a business model that addresses a
social issue.
Idea iteratively tested Business model is created and
refined.
Success in a few locations with a significant number of users
and it is time to replicate the model on a small scale
The SE has proven its ability to replicate and is now ready for
mass scaling up.
The SE has achieved scale and it now needs to implement its
end-game (see end-game appendix).
-
3
the gap
Mind the Gap!
Idea Proof of concept
Ready for early scale
Ready for breakout scale
End-game
Investor interest
SE pipeline
Soci
al e
nte
rpri
ses
Hong Kongs growing social enterprise ecosystem (not
exhaustive)
impact investing (return expected)
venture philanthropy (no return expected)
Venture philanthropy (investing without expectation of return)
is needed to address market failure and to inject needed capital to
increase pipeline of
investable SEs.
Impact investors are waiting for deals that do not exist.
Without significant investment from venture philanthropists, a gap
in the pipeline will remain.
Helping SEs at this stage requires significant capacity
building. Returns are typically not expected.
-
4
Building an Impact Eco-system
Idea Proof of concept
Ready for early scale
Ready for breakout scale
End-game
Investor interest
SE pipeline
Soci
al e
nte
rpri
ses
impact investing (return expected)
venture philanthropy (no return expected)
SOW Asias Value Proposition:
Closing the gap by being a trusted partner and investor of
choice to SEs scaling their impact in Hong Kong and throughout
Asia.
1) Deep understanding and empathy of the needs of SEs and their
teams; 2) Strong network and partnerships across the ecosystem
which SOW Asia can coordinate; 3) Flexible financing
