PowerPoint Presentation

http://www.sie.gov.hk

1Social problems nowadays call for innovative solutions and collaborative efforts. The SIE Fund aims to encourage innovation and cross-sectoral collaboration to alleviate and prevent poverty and social exclusion, finding new ways to build hope, dignity and self-worth throughout the community.2Social InnovationAny advance or changeIn knowledge, products or servicesThat allows a social needTo be met more effectively than before.3Social EntrepreneurshipBringing Social InnovationInto public servicesInto business

4Commission on Poverty and its Task Forces

5Current Landscape

Capital sources

(50.9%)

(181%)Non-section 88 operators of SE projects

Social objectivesDisadv. = disadvantaged6Emergence of Social Innovation and Social EntrepreneurshipDiversity of funding capitalPrivate funds, Philanthropic investment, Impact investment Examples: DBS Social Enterprise Advancement GrantSocial Ventures Hong KongSOW AsiaWater Drops Foundation LimitedThe Yeh Family Philanthropy

7Emergence of Social Innovation and Social EntrepreneurshipCompetitionsHK Social Enterprise ChallengeYoung Social Entrepreneur AwardSocial Enterprise Award SchemeEngagement of business sectorMedia coverageSocial Enterprise GallerySolution-On-Wheels (HKSOW)

8ObjectiveTo establish and support processes, schemes and experiments that attract, inspire and nurture social entrepreneurship to introduce and develop innovations that create social impact and build social capital to support poverty relief in Hong KongSocial Innovation and Entrepreneurship Development FundBeing set up with an allocation of $500 million from the Lotteries Fund9Principles of the FundDevelop and encourage social innovation and entrepreneurship in the context of the goals for the CoP;Seek innovation in the way that the Fund itself is applied;Social innovation to alleviate and prevent poverty is the focus, not social enterprise per se;Scope of the Fund should remain flexible for more effective delivery of results in the light of actual experience;Risk assessment is important while promoting innovation so as to maintain the prudent use of public money; The criteria and uses of the Fund should not overlap with other existing public funding, and should not crowd out existing support or initiatives;Encourage cross-sector collaboration and leverage on resources/ expertise of players in the field.10P1.1 Undertaking/commissioning research to better identify areas of needsP2 Capacity BuildingP1ResearchP3 Innovative ProgrammeInitial PrioritiesP2.1 Establishing or supporting schemes to reach into the community to spread awareness of social innovation and entrepreneurship, to encourage individuals to enter the fieldP2.2Establishing or supporting networks among bodies engaged in the field of social innovation and entrepreneurship to help build capacity and co-ordination across the fieldP2.3Establishing or supporting schemes to provide mentorship for aspiring social entrepreneursP2.4Building networks that help connect aspiring social entrepreneurs with partners, finance or other support mechanismsP3.1 Supporting existing mechanisms to provide seed or scale-up funding for innovative social entrepreneurs;P3.2Establishing new funding mechanisms to support innovative social entrepreneurs that fill the gaps or complement existing programmesP3.3Funding suitable projects that meet the objectives of the fund11Operation frameworkUse of intermediariesTo provide the flexibility and appropriate risk-taking mindset for devising innovative funding schemes;To build their networks to provide the necessary soft business skills to support entrepreneurs; andTo align with the aim of the Fund in building a bigger, more sustainable cross sector community for social innovators and entrepreneurs to flourish

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Eligibilitys88(Charitable)Non-s88Entity Individual1. Intermediaries2. Proponents of funding programmes administered by intermediaries *3. Proponents of projects directly funded by the TF** With a restriction on the percentage of profit to be shared 13Evaluation and ReviewThree levelsDifferent evaluation mechanisms and criteria for different levelsFairness, impartiality and consistency are the cornerstones for evaluationEngage third parties as far as practicable to design and/or conduct independent assessmentsEffectiveness of the Fund would be assessed from both financial and non-financial (social) perspectives14

Questions?

15Chart10.710.690.290.260.20.070.08

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11Job creation for disadv.71%Vocational training to disadv.69%Promote social inclusion29%Meet unmet oscial needs26%Promote sustainable environment20%Advocate fair trade7%Others8%

Chart10.50.240.220.130.02

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1 112Gov't Fund50%Affiliated org.24%Self investment22%Other grants13%Fundraising2%

Chart1269320329368406

Social enterprise projects

12008-092692009-103202010-113292011-123682012-13406

Chart11615142945

12008-09162009-10152010-11142011-12292012-1345