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Review on “ Enhancing Employment of People with Disabilities through Small Enterprise ” Project (3E ’ s Project) 26 July 2006
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2 The 3E’s Project The Project aims at providing grants for NGOs to set up and run small businesses employing people with disabilities (PWDs) The maximum grant for each business is $2 million and the no. of disabled employees should not be less than 60% of the total no. of persons employed for the business
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3 The 3E’s Project The first batch of businesses commenced operation in mid 2002 and 38 businesses operated by 20 NGOs have been supported The review of the Project is to evaluate the cost-effectiveness of the Project and show the direction of its future development
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4 Evaluation on Implementation Applications Received87 Supported Businesses 38 Businesses from 20 NGOs (9 Subsidiaries) No. of Applications under Processing 1 Approved Funding$19.9 Mn Estimated No. of Jobs Created 496 (357 for PWDs)
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5 Evaluation on Implementation Business Nature - cleaning - pest control - retail - repair & maintenance - catering- barrier free technology - laundry- blind mobile massage - floral design- telemarketing survey - eco-tourism- one-stop household service - travel service- vegetable & fruit processing - direct sales- transport service
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6 Evaluation on Implementation Business Nature Catering (6) 16% Retail (13) 34%Cleaning (11) (incl. laundry & car beauty) 29% Others (6) 16% Travel (2) (incl. Eco-tourism) 5% Total: 38 Businesses
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7 Evaluation on Implementation Cleaning Service General Cleaning Pest Control
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8 Evaluation on Implementation Laundry Service Car Beauty Service
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9 Evaluation on Implementation Retail Direct salesFamily store Healthy Living Specialty Shops (Open soon)
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10 Evaluation on Implementation Cultural kiosks in park 7-11 convenience storeRehab Shop
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11 Evaluation on Implementation Floral Design & Sales
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12 Evaluation on Implementation Catering Catering service Restaurant at private housing estate
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13 Evaluation on Implementation Vegetable & Fruit Processing & Supplying
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14 Evaluation on Implementation Travel Service Eco-tourism Travel & Conference Organizing Service
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15 Evaluation on Implementation Others Telemarketing Service One-Stop Household Service
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16 Evaluation on Implementation Barrier Free Access Technology Service Mobile Massage Service
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17 Evaluation on Implementation Perfection Transport Repair & Maintenance Service
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18 Evaluation on Implementation Disability Profile (as at May 2006) Mental Handicap (44%) Ex-Mental Illness (41%) Total: 328 PWDs Physical Handicap (7%) Visual Impairment (5%) Visceral Disability (1%) Others (1%) Hearing / Speech Impairment (1%)
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19 Evaluation on Implementation Source of Disabled Employees (as at May 2006) Total: 328 PWDs Supported Employment (55%) IVRSC (17%) Open Recruitment (9%) On-the-Job Training (6%) Sheltered Workshop (4%) IVTC/Skills Centre (4%) Others (4%) Special Schools (1%)
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20 Evaluation on Implementation Income of Employees (as at May 2006) EmployeesDisabled Staff (HK$) Able-bodied Staff (HK$) Full-timePart-timeFull-timePart-time Average Income $3,902$1,960$8,541$2,577
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21 Evaluation on Implementation Change of Financial Status (as at May 2006) Able- bodied Staff Disabled Staff Total From Unemployed CSSA to Low Income CSSA 58221279 From CSSA to Non- CSSA 42125 Total62242304
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22 Evaluation on Implementation Business Performance (as at May 2006) Profit (13 Businesses) Loss (9 Businesses) (including 1 closed) Breakeven (4 Businesses) < 1 year of operation (12 Businesses) Total: 38 businesses
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23 Reasons for Successful Businesses Market-oriented mode of operation Customer focused and tailor made services Great diversity of products/services Quality products/services Experienced management team Good cost control (esp. manpower) Successful brand name creating customer loyalty Pooling of existing business at initial stage of operation Stable source of customers (e.g. Large internal market) Continuous expansion of market
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24 Reasons for Unsuccessful Businesses Economic downturn Keen market competition Over-estimation of market demand Lack of experience in business management Insufficient cost control measures Undesirable location Narrow customer base Insufficient varieties of quality products/services
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25 Achievements of the Project Creating job opportunities for around 770 PWDs Promoting upward mobility of SW/SE trainees Demonstrating the working ability of PWDs to the public Enhancing NGOs’ market-orientation in providing vocational training Promoting NGOs’ cooperation with private enterprises and public/government departments Facilitating the setting up of social enterprises
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26 Challenges Decreasing number of applications 2001-022003-04 2004 -05 2006-07 (as at 6/2006) No. of Applications 3337134
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27 Challenges Difficulties faced by operating NGOs - Quite difficult to meet the requirement of 60% disabled employees - Hard to attain self-sustaining right after one year of operation
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28 Way Forward Relax ratio of disabled employees To explore the feasibility to extend the period of funding support Set up a pool of volunteers for assisting NGOs in operating the businesses Further enhance the promotion of the Project
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Thank You
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