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Government Executive Judiciary Legislature Public service Business Small, medium, and large enterprises Trade Associations

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GovernmentExecutive

Judiciary

Legislature

Public service

BusinessSmall, medium, and large

enterprises

Trade Associations

Chambers of commerce

Civil SocietyNGOs

Academic

Media

Religious Groups

Civic Organizations

Tri-Sectoral Partnership

GovernmentLeadershipAuthority

LegislationFunding schemes

BusinessFinancial resources

TechnologyBusiness Skills

CustomersTrainingProcess

Civil SocietyTrust

NetworkGoodwill

CommunitySocial Issues

The Disadvantaged

Leverage

– Social Entrepreneurship

GoodwillResourcesPartnership

Nearly every problem has been solved by someone, somewhere…… [but] we can’t seem to replicate [those solutions] anywhere else.

Bill Clinton

Change the world

Definition of Social Enterprise

serving the disabled

triple bottom lines

creating employment opportunities

community interests

Profit with purposes

http://www.project10tothe100.com/index.html

Social Innovation – Where does the innovation come from?

DIDhttp://www.dialogue-in-the-dark.com/

Social Innovation – Where does the innovation come from?

MYhttp://hk.youtube.com/watch?v=YxpTFwQx-A8

http://www.youtube.com/watch?v=TPk2gRuIdj0

How Kiva works

Source: www.kiva.org

Making a loan

Source: www.kiva.org

MyC4 business model

Bidding page

Statistics between MyC4 & KivaMyC4Launched October 2007

KivaLaunched October 2005

End Dec 2007 End Oct 2008 End Dec 2007 End Oct 2008Value of amount loaned since beginning in EUROS

300,000 5,190,195 12,250,512 37,747,507

Number of lenders 2,500 6,885 250,000* 353,543Average amount loaned per Lender in EUROS(includes re-loaned funds):

120 562 49* 107

Number of loans funded 500 3,079 19,250* 67,543Number of microfinance institution partners

2 providers 1 lender

20 (7 lenders, 13 providers)

48* 88

Average interest rate for lenders

10.9% 12.7% p.a 0% 0%

Average Interest Rate for borrows (APR after fees and costs of intermediaries)

n.a. 50% 20% 20%

Number of employees 9 22 in Denmark, 10 in Uganda

Not available 24 full time, 9 part time

Default rate 2% 2-3% Under 2% 1.25%

* As of October 2007 no other data available

Source: annual report MyC4, press releases and www.kiva.org

Social Entrepreneurship

Selfless

Unconditional

Patience

Sustainability = Innovation?FedEx – 700 aircraft, 44,000 motors, 4 million gallons of fuel every day, FUEL SENSE Program (1. replacing old aircrafts, reducing fuel consumption by 36%, capacity increase by 20%, 2. 30 software programs to optimize aircraft schedules, flight routes, and extra fuel on board, 3. 1.5 mega-watt solar energy system, 4. hybrid vans, 42% more fuel-efficient)

Cisco – used equipment (costing 8 million USD to handle) to Recycling Team (reuse rate jumps from 5% in 2004 to 45% in 2008, recycling cost fell by 40% and the team becomes a profit centre of 100 million USD)

Clorox – Green Works 40% share of 200 Million USD Market( 15-25% premium over conventional cleaners)

P&G – Tide Coldwater – 2%, 5% in 2002 to 21%, 52% in 2008 (British, Holland Households), impact 80 billion fewer kilowatt-hours = 34 million fewer tons of CO2)

CO2 + sea water = cement (coral)

Workforce entrants regard social responsibility and environmental commitment as important criteria in selecting employers

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Final Check

Business Model•Value Proposition – any problem?

•Profit Formula – how to make the business sustainable?

•Key Resources – at what cost? any strategic partner?

•Key Process – by what means? any room for improvement?

•“CASH” Check: Cash, Access, Skill, Hour

•ask what your solution can do for the public?

•Cash (saving people’s money?)

•Access (provide access to / for?)

•Skill (skill enhancement?)

•Hours (saving people’s time?)

Social Enterprise is a BUSINESS

Social Entrepreneurship

http://video.google.com/videoplay?docid=-7538155516829693692#

http://www.youtube.com/watch?v=Tq0tan49rmc&feature=fvw

Hong Kong Cases

School of Hip Hop, Arts Alive and City ChallengeYouth Outreach

Healthy Mothers-to-be Kwun Tong Methodist Social Service

School of Hip Hop, Arts Alive and City ChallengeYouth Outreach

Interests or Strengths: Music, Dance, and risk-taking

Entrepreneurial spirit: Love what kids love, and empower them

Creative blend: Street dance, local and foreign cultures, synergy among 3 SEs, from drop-outs to teaching classes in school

Scale-up: Corporate partnership and Regional competitionNews: http://www.youthoutreach.org.hk/hiphop/index2.htm

Healthy Mothers-to-be Kwun Tong Methodist Social Service

Interests or Strengths: Post-natal mentorship, baby-sitting, and domestic service

Entrepreneurial spirit: One client (family) at a time, strong sense of ownership

Creative blend: Traditional wisdoms, modern healthcare knowledge, and inter-generational socialization

Scale-up: Extend the service from post-natal to nursery (children, age 1-6)

News: http://www.labouraid.org/maternity/http://hk.news.yahoo.com/article/091011/3/emxr.html

Social Innovation

Key Learning points:

•Bottom-up•Turn interests or strengths into business ideas•Put ideas into actions by those interested parties•Leverage resources (tangible and intangible)from Government, NGOs, and Corporations•End-users and customers focused•Not just one or two entrepreneurs, mobilize the whole team!

Funding Sources

Section 88 – charitable organizationhttp://www.ird.gov.hk/chi/tax/ach_tgc.htm申請者必須是《稅務條例》(第 112章)第 88條所界定具有慈善團體身分的非牟利機構。

Funding one: 民 政 事 務 總 署 推 行 " 伙 伴 倡 自 強 " 社 區 協 作 計 劃http://www.had.gov.hk/tc/public_services/en_self_reli/index.htm每 項 核 准 計 劃 最 多 可 獲 得 300 萬 元 的 資 助 。 有 關 的 計 劃 須 在 申 請 獲 批 後 六 個 月 內 開 始 實 際 運 作 ; 資 助 期 不 多 於 兩 年 。

Funding two: 「 創 業 展 才 能 」 計 劃 http://www.swd.gov.hk/tc/index/site_pubsvc/page_rehab/sub_listofserv/id_enhancinge/ 殘 疾 僱 員 在 每 項 業 務 中 所 佔 比 例 由 不 少 於 受 薪 僱 員 總 數 60% 改 為 不 少 於 受 薪 僱 員 總 數 50%用 以 支 持 業 務 最 初 營 運 的 資 助,一 般 從 業 務 開 展 起 計,由 最 多 為 期一年 改 為 最 多 為 期 兩 年,而 每 項 業務 最 高 200萬 元 款 額 的 規 定 則 維 持 不變。

Funding SourcesFunding Three: 社區投資共享基金http://www.ciif.gov.hk/tc/whatsnew/index_c.html截至第十五期基金共批出計劃: 約 200個 , 基金共批出金額: 約 2 億元受資助計劃的成效:- 20 000名人士由受助到助人- 超過 5 000名人士因提升自信和能力而可以重投勞動市場- 支援 14 000多個家庭 , 成立 20個合作社- 動員超過 4 700個合作夥伴,其中約三分之一為商界夥伴

Funding Four:環境及自然保育基金http://www.ecf.gov.hk/tc/home/index.html基金自 1994年成立以來,合共資助超過 1,000個項目,批出撥款約 2 億元。

Funding Five:活化歷史建築伙伴計劃http://www.heritage.gov.hk/tc/rhbtp/application_arrangements.htm

Funding Six: 工業貿易署 - 中小企業發展支援基金」http://www.tid.gov.hk中小企業發展支援基金 ( 基金 ) 旨在資助非分配利潤的支援組織、工商組織、專業團體及研究機關,推行有助提升香港整體或其個別行業的中小企業的競爭能力的項目。

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SEBCSocial

Enterprises

Funding Support

•Government•Corporations

Increased social impact

• Resources- Social Angels- Commercial & Social Networks

- Strategic Partners

• Advice & Engagement- Strategy- Marketing- Training- Funding- Trading- Policy

• Capital

Leverage the Goodwill and Social Capital of

NGOs