Social enterprises offer chance to beat poverty

南華早報 2007-06-02

The Commission on Poverty held its last meeting yesterday and, as of the end of the month, the body will be no more. The government has insisted that the dissolution of the commission will in no way mean that it is keeping less of an eye on the least advantaged in society. It remains to be seen whether it will live up to its pledge.

So far, it is heartening that officials have said the right things. Chief Executive Donald Tsang Yam-kuen made poverty reduction a key plank of his election platform, in which he said "the widening wealth gap is a critical social problem in Hong Kong". He listed poverty, along with the environment and education, as issues high on his agenda, and promised to take charge of promoting initiatives aimed at alleviating poverty, such as setting up social enterprises in communities with high concentrations of low-income families to create employment opportunities.

His raising of the latter issue at a forum yesterday would seem to indicate that he means business. Given the scale of the problem, however, he has much work to do.

Hong Kong's ever-evolving work environment and ageing population means that some people are losing their jobs and lack the skills to find new ones. The situation has always been problematic for the disabled or those leaving school with poor marks. As there is no minimum wage, rising living costs can add to the stress.

A series of schemes has been set up by the government, but those formulated by the commission aimed at encouraging companies and non-governmental groups to establish social enterprises are where most impetus is being placed.

Many would argue that any business that does not put profit ahead of everything else is doomed to fail. To them, the notion that a socially responsible business goes out of its way to employ workers suffering from various disabilities or a lack of skills is simply preposterous. However, with the success of such ventures elsewhere, including Britain, there is good reason for optimism.

In Hong Kong, there are about 200 such enterprises, training and employing thousands of people in ventures including repair work, mushroom farming, landscape gardening, school canteens and convenience stores. Many are manned by a mix of disabled and able-bodied workers, who are all paid market rates for their labour. Though their margins are relatively low, what is important is that they are profitable and their workers do not have to depend on government handouts.

Admittedly, not every social enterprise succeeds. Non-governmental organisations may have the heart to help the weak and the poor, but they lack the business acumen to ensure the ventures' survival. This is where successful businessmen could chip in to make a contribution. Social enterprises that can tap their expertise are more likely to fly.

Until now, the focus of poverty relief efforts has been on providing welfare to the needy. While such assistance must continue, a far better way of helping the poor is to create suitable employment opportunities.

With our ever-widening wealth gap, the social welfare challenges of an ageing society and an increasingly competitive business environment, Hong Kong has a considerable task ahead in its fight against poverty and unemployment. Apart from attracting more companies and encouraging new ventures, social enterprises offer a viable solution.