Social Enterprise | Understand SEs

Knowledge and UnderstandingNature of and Policy on Social Enterprises

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No, an SE is different from a charity.
A charity is established for charitable purposes. Its operating expenses are mainly funded by donations and sponsorships.
On the other hand, an SE is a business aiming at making profits through the provision of products and services, while achieving specific social objectives. Its profits will be principally re-invested in the business to sustain its social objectives.

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An SE operates as a business with an aim of achieving specific social objectives for handling various social issues. Some SEs target at helping the socially disadvantaged by offering them employment and training opportunities, thereby facilitating them to integrate into the community and become self-reliant.
Some SEs target at pursuing other social objectives, such as enhancing social inclusion, promoting environmental protection, fostering fair trade and advocating cultural inheritance, etc.

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The Social Enterprise Advisory Committee under the Home and Youth Affairs Bureau is an advisory body on matters related to SEs. Its terms of reference are as follows:

To advise the Government on the formulation of policies and strategies for supporting the sustainable development of SEs in Hong Kong;
To advise the Government on programmes/activities that promote development of SEs and to monitor their implementation;
To foster better understanding and encourage closer cooperation amongst relevant stakeholders in the development of SEs; and
To undertake research studies on matters pertaining to the development of SEs.

For more information, please visit the Advisory Committee's website.

Practical IssuesSetting up SEs

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Currently, there is no legislation or registration system for SEs in Hong Kong. Same as other private enterprises, SEs are required to comply with all the legislation, regulations and subsidiary legislation of Hong Kong applicable to their enterprises and nature of business, and apply for licences from the Government as applicable to the SEs’ business nature.
The Social Enterprise Business Centre has published two guides on setting up SEs. The guides provide information about the legal form and operation of SEs for general reference. The online version of the guides is available below:
SE Good Start – A Practical Guide of Setting up a Social Enterprise
SE Good Start – Choosing a Legal Form and Recommended Practices

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The Government provides various seed grants to facilitate SEs in achieving social objectives in different areas. For start-up support or other schemes available to SEs, please visit “Funding Schemes” under "Set Up SEs" in this website.

ActionSupporting SEs

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In the start-up stage, SEs particularly need practical guidance and professional advice in areas such as cost monitoring and quality control to improve their operation. Fortunately, a lot of professionals in Hong Kong are enthusiastic in offering advice and giving support to SEs.
If you share the values of SEs and possess professional knowledge and/or profound experience in operating a business, you are welcome to provide assistance to SEs in need by giving them advice on running a business or other support such as offering concessionary rent and business opportunities, etc.

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The most direct way to Shop at SEs is to patronise SEs.
According to the SE Directory of the Social Enterprise Business Centre, there are more than 710 SEs in Hong Kong covering different fields and trades. The diversity of SEs' products and services can meet the procurement needs of various business enterprises. Apart from procurement, some business enterprises build up other forms of long-term co-operation relationship with SEs and render support to SEs in different areas, such as helping SE enhance their operation and management capabilities, offering business concession and promotion channels, or establishing business partnership with SEs.