What makes social enterprise effective in Hong Kong

Abstract

Social enterprise is an emerging concept in Hong Kong that bridges the continuum between profit oriented private companies and non-profit charity organizations by adding the elements of service and trade to social services. Despite the fact that the social enterprise is already a well-developed discipline in western societies, the academic research that relates to the said topic is scarce in Hong Kong. Existing literature that studies social enterprise in OECD countries tends to perceive the social enterprise as a functional institution adapting to the surging local unemployment and inequalities arising from the process of globalization. A publicly held general assumption behind this functional institution is that social objective and business goal can be easily and conveniently integrated within the structure of social enterprise in a capitalist economy system. Literature review indicates that the integrative common sense view of the social enterprise has been far too optimistic and failed to demonstrate that the social enterprise is situated within the tensional force between the civil society and the state, between the state and the market, and between the market and the civil society, and thus naturally and constantly experiencing internal and external conflict. Building on our macro tensional model we critically assess the current condition of social enterprises in Hong Kong. Based on well established literature we also draw up an assessment grid to examine the effectiveness of several selected local social enterprises. Assessment criteria include the level of attainment of both financial and social objectives, whether social innovation is the driving force behind social enterprise, how the selected social enterprises enrich social capital as well as creating other positive social impact on the community. Policy implications are also discussed.