Argument

Muhammad Yunus
Bangladesh
Tons of millions died from starvation
Severe poverty

Muhammad Yunus
Realized the problem, and came up with an idea of microcredit
Little loans can help the poor
Lend 27 USD to 42 poor women for purchasing materials and operating business

Established Grameen Bank in 1983

Awarded Nobel Peace Prize for founding the Grameen Bank in 2006

Definition of social enterprise

Social enterprise

Philanthropic, business with a good cause

Not a charity
Profitable
Sustainable

Form following function

Form versus Function
Function: common good
Form: legal structure of social enterprise

Social entrepreneurship
Passion (Function) Social Impact/Outcome Sustainable (Form)

Human resource: Partners with passion and resources

Nonprofit in the mind of general peopl

e
Form versus Function

Unfortunate accident of vocabulary that we wish would disappear altog

ether
Imply not profitable
Imply not striving to be profitable

Hong Kong Public attitude towards Social enterprise

Function
Help low income people and poor community

Form
Funds dependent on government subsidy
Loss
Philanthropic business, not sustainable

Forms and growth

Form versus Function
Determine Legal structure and tax implication
Different forms, different tax system
Tax hinders sustainability of social enterprise

Social enterprise can be for-profit or non-profit

Not profitable is never an option

Forms and growth

Small business with limited resource
First few years: Make or break period
Grants, crowd funding and bonds
Only survives in short terms
Sustainable in Long Term
Diverse and stable set of income streams
Greater social impact

Failure
Unfamiliarity with the idea of trading and operating in a market

Forms and growth

GCSE report, 2010
Breakeven or profitable throughout 2004-2008
49.7% SEs with funding supports from government or other funding sources (NGO)
78.6% of SEs without any funding (No NGO and non-social worker)

Harvard school business

The average success rate of first-timer business entrepreneurs is only 22% (Harvard s
chool business)

Implication
Reduce dependence on funding support
Recruit businessperson to run the business

Forms and growth

Hybrid organization
Integrated profit-making with social mission

Jamie Olivers fifteen

Trade: Catering business
Social Mission: help young unemployed, low educated young people
Method: Funds from the restaurant

Make A Stand
Trade: Organic lemonade
Social Mission: End child slavery in the world
Method: Donate 5% funds from net revenue to charities

 (2008), Hong Kong Social Entrepreneurship forum

The social enterprise revolution: Melody Hossaini at TEDxKLWomen 201
3
https://www.jamieoliver.com/the-fifteen-apprentice-programme/about/
story
Social enterprises must not prioritise social aims over viability
http://www.euronews.com/2013/12/02/co-op-tool-for-social-entrepreneurs