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Entering the digital era Global Investor, 02/2012 Credit Suisse

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Global Investor, 02/2012
Credit Suisse

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GLOBAL INVESTOR 2.12 — 45<br />

“My ultimate aim is to encourage<br />

<br />

<br />

small businesses.”<br />

fresh vegetables. These came from a sheltered<br />

farm workshop that was founded in<br />

1994 for about 160 workers with psychiatric<br />

disabilities. We called it “simulated business”<br />

because it was intended to resemble as<br />

closely as possible a real work situation in<br />

which persons with psychiatric disabilities<br />

could interact with regular customers. We<br />

provided a job coach to help the former patients<br />

to be salespeople. The project was well<br />

received by both neighboring stall owners and<br />

customers. This successful effort led to us<br />

setting up convenience stores in hospitals<br />

from 1997. Three years earlier, we secured a<br />

public cleaning contract in parks and the city’s<br />

indoor games hall and in 1999 also the first<br />

licensed restaurant in the games hall. These<br />

projects won numerous awards for best practices<br />

in reintegration. After witnessing the<br />

impressive results of providing training and<br />

employment opportunities for persons with<br />

psychiatric disabilities in these projects, the<br />

government subsequently set up a fund to<br />

provide seed money to social enterprises.<br />

Balancing objectives the key to success<br />

Social enterprise has two main objectives.<br />

One, obviously, is social, and in my own experience,<br />

it consists in training and employment<br />

opportunities for persons with a history<br />

of mental illness. The other objective is to<br />

sustain a business with profits generated and<br />

to use the surplus to create other new social<br />

enterprises or to expand the existing one. The<br />

directors of this limited company do not share<br />

in the profits. Balancing social and business<br />

objectives is more difficult than running a<br />

business with profit sharing, as the two objectives<br />

are entirely different. Sometimes, the<br />

managers focused more on the social objective,<br />

and the enterprise failed to produce<br />

sufficient income (neither the directors nor<br />

the managers were former patients). It is<br />

the combination of both types of expertise –<br />

understanding the social objective and marketing<br />

savvy – that makes it a success. I was<br />

fortunate to have recruited a team of marketing<br />

staff to assist me in running the businesses,<br />

and a team of dedicated social workers<br />

to deliver on the social objective.<br />

In response to the growing awareness of<br />

healthy food after the 2003 SARS (severe<br />

acute respiratory syndrome) epidemic, in 2004<br />

I began to set up healthy-living specialty<br />

organic shops that sold organic veggies (again<br />

from the sheltered organic farm) in the railway<br />

concourse, followed by four more shops later.<br />

As of 2009, we had established a total of<br />

20 social enterprises, providing more than<br />

230 jobs for persons with psychiatric disabi l-<br />

ities, the disadvantaged and the able-bodied,<br />

and simultaneously creating over 450 training<br />

positions with a total turnover of over HKD 25<br />

million that yielded a small profit.<br />

A model that others are following<br />

Responding to the success of social enterprises<br />

in Hong Kong, our mainland China<br />

counterparts made numerous study visits to<br />

Hong Kong to learn about this approach to<br />

the disadvantaged. I am glad to say that<br />

Guangzhou City also set up a farm to provide<br />

both employment and training opportunities<br />

to persons with psychiatric disabilities, and<br />

a mental hospital in Xinjiang set up a similar<br />

farm. Ever since my retirement in 2009, I have<br />

traveled widely to different provinces and<br />

cities of mainland China to deliver talks on my<br />

previous working experience, and I encourage<br />

colleagues to come to Hong Kong to see how<br />

we do things. This sort of exchange serves<br />

to show visitors that people with a history of<br />

mental illness can recover and hold down a<br />

job like anyone else.<br />

Naturally, social enterprises run by nonprofit<br />

welfare organizations are limited; they<br />

are “models” of best practice. My ultimate aim<br />

is to encourage business firms to partner<br />

with non-profit organizations to set up actual<br />

small businesses that employ persons with<br />

disabilities or to set up social enterprises<br />

within their own firms. Such an endeavor<br />

represents more than just corporate social<br />

responsibility; it is a commitment to plough<br />

back profits into a company to create employment<br />

positions for the disadvantaged. That<br />

is my vision, and I am optimistic that others<br />

will share it. I am now seeing more young<br />

entrepreneurs enter the field of social enterprise<br />

with financial support from social ventures<br />

providing seed money.<br />

Social entrepreneurship has to be nurtured,<br />

and optimally during young people’s<br />

years at university. I have seen social entrepreneurship<br />

being taken up by various business<br />

schools at Hong Kong’s universities, but<br />

the field still has a long way to go. Since the<br />

enactment of the United Nations Convention<br />

on the Rights of Persons with Disabilities in<br />

2008, the interest of governments in this<br />

area has been growing. Every effort should<br />

be made to provide jobs through social enterprises.<br />

I do hope that more young social<br />

entrepreneurs will decide to go into business

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