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社會企業之商業模式分析: 以東南亞個案為例

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(1)ASIA-PACIFIC INDUSTRIAL AND BUSINESS MANAGEMENT NATIONAL UNIVERSITY OF KAOHSIUNG. Master Thesis 社會企業之商業模式分析: 以東南亞個案為例. The analysis of business model for social enterprise: Case study in Southeast Asia. Graduate Student:Tan-Wei Liao Advisors:Dr. Ting-Lin Lee Dr. Yung-Kai Yang. JULY 2015.

(2) 致 謝 年過 30 歲,進入職場已將近 10 年,雖然工作忙碌,但還是非常高興能再次回到 校園當學生,學習嚴謹的理論基礎,雖然白天上班,晚上還要跟小孩拼鬥完後,再挑燈 夜戰作研究是很累人的事,體力、腦力都重新開啟戰鬥力,然而這都是值得的。 兩年多的研究生涯裡,感謝所有亞太系的所有老師們,您們的諄諄教導與指正,在 此表達謝意。在論文撰寫過程中,特別感謝李亭林、楊詠凱老師,在百忙之中對於論文 提供指導,並賜予諸多的寶貴意見,使本論文更加完整,在定期的會議中,不僅讓我欽 佩教授們嚴謹的學術研究態度,也對研究主題更加了解。感謝口試委員莊寶雕、劉佳玲 教授,精闢的建議補正論文的缺失,也感謝學弟妹們辛苦地大力協助張羅會議和口試事 宜,也謝謝同學蔡秉宜,一路陪伴切磋學習,讓我能充實研究內容。以及感謝每一位受 訪對象的幫忙,使本論文能夠圓滿完成。再來,感謝班上所有同學的加油與打氣,能夠 遇到志同道合的你們,一起做學問,一起出遊,歡度兩年的快樂時光,都是珍貴的回憶。 最後,僅將論文獻給我太太,感謝她默默一路支持、鼓勵,給我最大的關懷和包容, 當我無法陪小孩玩和陪伴他們睡覺時,都能從旁協助,讓我無後顧之憂,放心追求自己 的理想,感謝我的兩個小寶貝,當老爸要去上課時,甜甜的笑容像小天使,疲憊都拋在 腦後了。最後,感謝在這個過程中給予我支持,並給予我動力繼續堅持下去的人,有了 你們才能專心完成論文。. 廖丹瑋 謹誌 中華民國一百零五年一月.

(3) 社會企業之商業模式分析: 以東南亞個案為例. 指導教授:李亭林 博士 楊詠凱 博士 國立高雄大學亞太工商管理學系. 學生:廖丹瑋 國立高雄大學亞太工商管理學系碩士在職專班. 摘要. 隨著不斷地全球化,我們正住在一個沒有國界的世界,今天,每一個發生在其他國 家的社會議題,都有可能隨著媒體傳播去影響其他社會,但是傳統的公、私、非營利部 門,卻無法像以往一樣有效的解決這些議題,有許多人現在開始嘗試以新的概念-- “社 會企業” 來解決社會問題。相較於傳統企業,社會企業迄今還是一個令人感到困惑的想 法,因為它是使用商業手段來達到社會目的,而這個手段往往需要透過營運模式的創新 才能來進行,目前台灣相關的實務跟學術研究相對來說很少,而且主要的研究也是針對 少數幾家成功的案例,無法累積足夠的知識,這種學術無法輔助實務的情況,對於急需 創新方法的社會企業人士來說,少了其他經驗的參考,就只能從做中摸索,無法從累積 的知識中避免錯誤,創業更為困難,因此為了讓有志經營社會企業的人能夠有更多的知 識及經驗在創業時參考,本篇研究將會探討東南亞國家中的社會企業如何解決社會問題、 以及在其商業模式上所面臨的困難和最後如何去解決這些問題 為了更深入的解答上述的疑問,這篇研究將採取質性研究中的個案研究法及深度訪 談法,選擇了三個國家共 9 間在東南亞的社會企業作為研究對象,再以學者楊銘賢 (2009) 所提出的社會企業商業模式架構來做進一步分析。這篇研究發現,東南亞的社會企業主 要面臨了六種困境,含了資金、人力資源、服務或產品品質、政府角色、責信、經營者 心態。對於組織來說,在處理這些問題時,建議組織除了不斷檢驗自身是否有使命偏移 的情況外,也需要確實了解到利害關係人的需求與想法而達到社會與經濟使命的平衡。 關鍵字:社會企業、商業模式、公平貿易、非營利組織.

(4) The analysis of business model for social enterprise: Case study in Southeast Asia Advisor(s): Dr. Ting-Lin Lee Dr. Yung-Kai Yang Department of Asia-Pacific Industrial and Business Management National University of Kaohsiung Student: Tan-Wei, Liao Department of Asia-Pacific Industrial and Business Management National University of Kaohsiung ABSTRACT With the globalization advancing continually, we are living in a bondless world. And through media every social issue occurs in countries would influence other societies in the world. However, because of the conventional sectors cannot solve these problems effectively as before, more and more people are trying to solve these problems with emerging idea “Social Enterprise”. Due to this idea tries to solve social issue by innovative business way, it gets an easy-confused idea in Taiwan compare with common enterprise. For social enterprise the relevant practice or research now is relatively rare in Taiwan, and most of them focus on few successful cases. It causes the people who would like to initiative one lack experience referred and they cannot learn from mistakes. Therefore this study will try to understand how the obstacles which social enterprises in Southeast Asia are confronting and solution for them. This research is conducted with qualitative research and there are 9 social enterprises selected as research cases. Related information are generated and collected through Case study and In-depth method. After that, these information will be analyzed based on the business model theory of social enterprise proposed by Yang (2009). Overall, this study finds there are 6 kinds of obstacles that the social enterprise in this area is confronting, includes funding, human resource, quality of service or product, role of government, accountability and mindset. It is suggested that a social enterprise shall often examine if they have mission drift and to understand the thought from beneficiary. For balancing social and economic goal, it would be helpful to turn the weakness of organization to strength when entrepreneur dealing with these issues. Keywords: Social Enterprise、Business Model、Fair Trade、Nonprofit Organization.

(5) Table of Content Chapter 1 Introduction............................................................................................................1 1.1 Research Background……………………………………………………….…….…….1 1.2 Research Motivation……………………………………………………………….……2 1.3 Research Objective and Questions………………………………………………...…….3 1.4 Research Procedure ………………………………………………...……........................4 Chapter 2 Literature Review ………………………………………………………………..5 2.1 Social Enterprise ………………………………………..……………………………….5 2.1.1 Meaning of Social Enterprise……………………...………………….………… 5 2.1.2 Origins of Social Enterprise………………………………………………………8 2.1.3 Type of Social Enterprise……………………………………..…………………12 2.1.4 Business Model of Social Enterprise……………………………….……………14 2.1.5 Legal Development of Social Enterprise……………………………………...…17 2.2 Brief Summary ………………………………………………………………………...19 Chapter 3 Research Methodology……………………………………………………….…23 3.1 Research Framework…………….………………………………………..…...……..…23 3.2 Research Approach……………………………………………………………..……….25 3.3 Research Method……………..………………………………...………………...……..27 3.3.1 Case Study Method……………………………………………………………...27 3.3.2 In-Depth Interview………………………………………………………..……..28 Chapter 4 Analysis and Results.............................................................................................30 4.1 Laos……………………………………………………………………..………………31 4.1.1 Country Profile…………………………………………………………………….31 4.1.2 Case Introduction………………………………………………………...………..31 4.1.2.1 Lao Disabled Women’s Development Centre………………………….….….31 4.1.2.2 FairTrade Laos………………………………………………………….…….33 4.1.2.3 Fruitfriends…………………………………………………………….……..35 4.1.2.4 Ma Té Sai…………………………………………………………….………37 4.2 Cambodia……………………………………………………………………….....……39 4.2.1 Country Profile…………………………………………………………….………39 4.2.2 Case Introduction………………………………………………………….………40 4.2.2.1 Concert……………………………………………………………….………40 4.2.2.2 Angkor Butterfly Centre………………………………………………..……42 I.

(6) 4.2.2.3 AngkorWall …………………………………………………………….……43 4.3 Vietnam…………………………………………………………..……………….…….44 4.3.1 Country Profile………………………………………………………………….…44 4.3.2 Case Introduction………………………………………………………………….45 4.3.2.1 Tea Talk Café…………………………………………………………………45 4.3.2.2 Zo Paper……………………………………………………………………...46 4.4 Remarks………………………………………………………………………………..47 Chapter 5 Conclusion and Suggestions……………............................................................54 5.1 Results and Findings ……………………………………………….……...........……...54 5.2 Managerial Implication……………………………………………….….……………..60 5.3 Limitations…………………………………………………………….….……….……61 5.4 Future Research Suggestions……………………………………………..…………….62 Reference……………………………………………………………………….…………....63. II.

(7) List of Tables. Table 2-1 Comparative overview of social enterprise in the United States and Europe……..10 Table 2-2 Relevant Research on Social Enterprise………………………………………..…21 Table 3-1 Research structure and Interview Outline……………………………….………...26 Table 3-2 Interviewees Information………………………………………………….………29 Table 4-1: Comparison Table of Countries…………………………………………….…….30 Table 4-2 Business Model of Case Selected………………………………………….……...51. III.

(8) List of Figures. Figure 1-1: Research Flow Chart……………………………………………………….4 Figure 2-1: Alter’s Spectrum…………………………………………..........................13 Figure 3-1 Research Framework……………………………………………………....24. IV.

(9) CHAPTER ONE INTRODUCTION. 1.1. Research Background. With the globalization advancing continually, we are living in a bondless world. Every social issue occurs in countries would influence other societies in the world. Such like the phenomenon of the uneven distribution of resource, poverty, agriculture, environment, and so on, they are all increasing continually. However, the conventional sectors of a nation, includes public, private and the third sector cannot deal with these issues as well as before. Because public sector lacks flexibility when confronting social issues, as for the private sector they have efficiency but what they focus is to profit. Finally, due to financial limitation, the 3rd sector they would be not capable to make a long term arrangement for social issues concerned, especially after economic crisis since 2008. But with the idea of social enterprise emerging, there are some people with entrepreneurship and different value like Yunus who found Grameen Bank in Bangladesh for solving poverty by microcredit. According to Social Enterprise Alliance of the United States (SEA) (2015), they define a "social enterprise" as "an organization or venture that advances its primary social or environmental mission using business methods." Now there are many organizations like this in the world is dedicated to balance profit and their social mission with an innovative business model. Some social enterprises in Taiwan now can start to profit and fulfill social mission successfully at the same time. Like there is a FamilyMart inside InnoLux, which is considered as a social enterprise type cooperated by InnoLux, FamilyMart, and Taiwan Found for Children 1.

(10) and Families. The purpose of its setup is to help parents, youth and children in vulnerable family to have opportunity to have a stable live by working there. With the amount of social enterprise reported is getting more and more, and many cases has been studied and published in the paper and journal. We can find there is a trend which is more and more people are willing to tempt to change current social status by different way.. 1.2. Motivation. The motivation for this research is try to study the examples of social enterprise overseas, because of the study regarding this issue in Taiwan is still relatively rare. Social enterprises, considered as a form of organization that differs from traditional for-profit and nonfor-profit organizations, has been broadly discussed and systematically encouraged among academic communities and practitioners since the 1990s (Perrini, 2006). With the idea of social enterprise is conveying gradually in Taiwan, there are more social enterprises initiated by entrepreneurs but conventional non-profit organization. But in practice there are many social enterprise entrepreneurs need to overcome obstacles from trying to achieve both social and financial goals without resource. As Boschee and McClurg (2003) mentioned, the social enterprises are different from traditional nonprofit organizations because social enterprises’ earned income strategies are directly tied to their social mission. Some of these enterprises even need to compete with for-profit enterprises. According to Alter (2006), social enterprises are driven by two forces: “first, the nature of the desired social change often benefits from an innovative, entrepreneurial, or enterprisebased solution. Second, the sustainability of the organization and its services requires diversification of its funding stream, often including the creation of earned income 2.

(11) opportunities. Besides, the environment where social enterprise being is also matter. Like Kerlin (2006) mentioned, the differences of social enterprises between U.S and Europe Union stem from contrasting forces shaping and reinforcing the movement in each region. Generally speaking, the social enterprise is still an emerging idea in Taiwan, there are about 200 relevant thesis could be searched in the national digital library of theses and dissertations in Taiwan if used social enterprise as a key word. Most of these studies focus on single and domestic cases. In fact, the related information in Taiwan remains clearly underresearched compared with conventional business, not to mention the cases from different countries.In summary, we can get more experience by studying social enterprise from different areas, and our entrepreneurs could have more opportunities to learn when they would like to initiate one. For emerging social enterprise in Taiwan, it is quite worth to refer to the business model of social enterprise oversea by researching and comparing them.. 1.3. Research Objective and Questions. Based on the research motivation mentioned above, the objective of this research is to understand the current development of social enterprise, business model and the obstacles they face in Southeast Asia area. The following research questions will be studied in this paper. 1). Why did these entrepreneurs initiate a social enterprise?. 2). What kind of business models do these social enterprises adopt in Southeast Asia?. 3). What obstacles did these social enterprises confront in the operation? How to solve these obstacles?. 3.

(12) 1.4. Research Procedure. The Research Procedure will follow below steps and it is shown in Figure 1-1. : 1). Setting the research topic that can represent research objectives adequately.. 2). Reviewing and selecting the previous literature about social enterprise and business model.. 3). Build up a research structure, includes how to analyze the acquired information from interviews by previous literature selected.. 4). The representative social enterprise will be selected as an interviewed objective by purposive sampling base on their core mission, country and type.. 5). For acquiring the experience from social enterprise selected, the people who is actually responsible for the enterprise operation will be inquired for interview. And seeking more understanding about social enterprise selected by contacting interviews and case study will be conducted.. 6). Based on the information from interview and case study, the relevant information will be collected and analyzed under the literature structure for offering analysis result and suggestion.. Research motivation and objective. Literature review and theory analysis. Collect data by research method selected. Build up research structure. Figure 1-1 Research Flow. 4. Data compilation and analysis. Conclusion and suggestion.

(13) CHAPTER TWO SOCIAL ENTERPRISE. 2.1. Social Enterprise. With more and more people are trying to solve social problem in a way different from previous, nowadays, social enterprise has become an emerging concept. The reasons for it includes an awareness of active citizenship, advancing information technology and rising literacy levels. Some people, however, are still confused with its meaning in practice, especially to differentiate it with nonprofit organization and meaning of corporate social responsibility. Therefore, the relevant concept of social enterprise will be elaborated in the beginning of this chapter, includes its meaning, origins, types, differences among US, Europe and countries in Asia, and legal structure. Afterward, the theory of business model of social enterprise will be discussed.. 2.1.1 Meaning of Social Enterprise. As mentioned above, the mission of social enterprise is tending to more social-change orientation in the process of their dynamic development like nonprofit organization. But the business model social enterprise used or the form of organization is usually overlapped with the existing organizations we already know, like common enterprise. People are easy to be confused with social enterprise and other common organization. With the emergence of such this organization, our society needs to know the risk and opportunity of social enterprise by 5.

(14) understanding its concept Before starting to address the meaning of social enterprise, there is one thing needed to understand first, which is there is no certain definition for social enterprise so far because of its characteristics. And the discussion for the notion of social enterprise has been continual no matter in Europe or U.S. According to Bull and Crompton (2006), this is due to the lack of an agreed definition. However, it is convinced that a social enterprise must contain both social and economic goal when it operates. As Alter (2006) described that the relationship between social and economic goals are intertwined like DNA in social enterprises: “The crux of the individual social enterprise lies in the specifics of its dual objectives – depth and breadth of social impact to be realized, and amount of money to be earned. Mission drives social value creation, which is generated through not-for-profit programs. Financial need and market opportunities drive economic values creation, which is delivered through business models. As a result, money and mission are intertwined like DNA in the social enterprise…” (p. 206). Dees (1998) also identified social enterprises are hybrid organizations having characteristics of both nonprofit and for-profit form organizations. While Dees (1998) identified social enterprises are hybrid organizations having characteristics of both nonprofit and for-profit form organizations, other scholars limit their discussions of social enterprise to the field of nonprofit management (Alter, 2004, 2006; Dart, 2004; Young & Salamon, 2002). In summary, based on the characteristics social enterprises present variously in practical terms. For the practical definition, Social Enterprise UK defined ‘A social enterprise is a business that trades for a social and/or environmental purpose.’ Social Enterprise Alliance in U.S. defines ‘Social enterprises are businesses whose primary purpose is the common good. They use the methods and disciplines of business and the power of the marketplace to advance their social, environmental and human justice agendas.’ In addition to the above meanings, Organization for Economic Co-operation and Development (OECD, 1998, p. 12) also have 6.

(15) similar definition for social enterprise, which is “any private activity conducted in the public interest, organized with entrepreneurial strategy, but whose main purpose is not the maximization of profit but the attainment of certain economic and social goals, and which has the capacity for bringing innovative solutions to the problems of social exclusion and unemployment” (OECD, 1998, p. 12). Besides, OECD tried to identify a set of key economic and social elements in the document the social enterprise sector: a conceptual framework of Local Economic and Employment Development Programme (2006).. Economic Criteria:. 1) Unlike traditional non-profit organizations, social enterprises are directly engaged in the production and/or sale of goods and services (rather than predominantly advisory or grantgiving functions) 2) Social enterprises are voluntarily created and managed by groups of citizens. As a result, while they may receive grants and donations from public authorities or private companies, social enterprises enjoy a high degree of autonomy and shareholders have the right to participate (‘voice’) and to leave the organization (‘exit’) 3) The financial viability of social enterprises depends on the efforts of their members, who are responsible for ensuring adequate financial resources, unlike most public institutions. Social enterprises therefore involve a significant level of economic risk 4) Activities carried out by social enterprises require a minimum number of paid workers, even if they may combine voluntary and paid workers.. 7.

(16) Social criteria:. 1) Social enterprises are the result of an initiative by citizens involving people belonging to a community or to a group that shares a certain need or aim. They must maintain this dimension in one form or another 2) Decision making rights are shared by stakeholders, generally through the principle of ‘one member, one vote’. Although capital owners in social enterprises play an important role, decision-making power is not based on capital ownership; 3) Social enterprises are participatory in nature, insofar as those affected by the activities (the users of social enterprises’ services) are represented and participate in the management of activities. In many cases one of the objectives is to strengthen democracy at local level through economic activity. 4) Social enterprises include organizations that totally prohibit the distribution of profits and organizations such as co-operatives, which may distribute their profit only to a limited degree. Social enterprises therefore avoid profit maximizing behavior, as they involve a limited distribution of profit. 5) Social enterprises pursue an explicit aim to benefit the community or a specific group of people. By doing so, they directly and indirectly promote a sense of social responsibility at local level.. 2.1.2 Origins and History of Social Enterprise. Since the 1980s both the United States and Europe have experienced a simultaneous expansion in social enterprise. As a result, the emergence of social enterprises has reflected the 8.

(17) two increased desire for social change from the public, as well the need for non-profits to diversify financially. So there are lots of researches regarding the development of U.S and Europe. Due to social issues, background, structure and so on various, the social enterprise in the sides of the Atlantic also has different origins (Doherty et al., 2009). In general, the social enterprise in Europe can be traced its origins back to medieval guilds. As for the modern trends, Kerlin (2006) pointed out, “In Western Europe the modern trend towards social enterprise emerged somewhat later than in the United States and was focused on the simultaneous development of services and diversification of revenue generation in the third sector. With a fall in economic growth and increased unemployment that began at the end of the 1970s and continued into the 1990s, many European welfare states came into crisis.” It is the Rochdale Pioneers, founded in 1844 in U.K, who are normally seen as a symbol of the start of the growth in social enterprises (Pearce, 2003). It has been 171 years since the Rochdale Society founded in December 1844 in the United Kingdom. So U.K is generally recognized that one of the countries with first successful social enterprises. Rochdale Society is a co-operative society, its members worked together to help each other to meet their financial needs and aspirations. Using a set of seven guiding rules known as the ‘Rochdale Principles’, the society supplied good quality products such as butter, candles, soap, flour and blankets to its members cheaply, and then re-distributed the profits back tom the members. The Rochdale principles include open membership, democratic control, political neutrality, and are credited with providing the basis for the development and growth of the modern co-operative movement. In the U.S, the term social enterprise remains a very broad concept, referring mainly to market-focused economic activities serving a social goal (Defourney & Nyssens, 2006). And in some cases social enterprises are seen as an innovative response to the funding problems of non-profitmaking organizations (Dees, 1998). 9.

(18) For the origins of social enterprise in the United States, it can be taking root at around 1889, Jane Addams and Ellen Starr started running a center for higher civic and social life called Hull House in Chicago, which instituted and maintained educational and philanthropic enterprises as part of its mandate. But the term social enterprise was first developed in the 1970s to define business activities nonprofits were starting as a way to create job opportunities for disadvantaged groups (Alter, 2002). Furthermore, it is believed that the emergence of social enterprises in the United States is rooted in six historical forces (Boschee, 2006): 1). Depleted reserves caused by the recession in the late 1970s;. 2). Diminished support from the public sector.. 3). Reduced giving by individuals and corporations.. 4). Increased competition for grants and contributions.. 5). Increased people in need.. 6). A dangerously frayed reputation of the nonprofit sector. Following is the comparative table based on these differences in the origins and. development of social enterprise in U.S and in Europe.. Table 2-1 Comparative Overview of Social Enterprise in the United States and Europe United States. Europe. Emphasis. Revenue Generation. Social Benefit. Common Organizational Type. Nonprofit. Association/Cooperative. Focus. All Nonprofit Activities. Human Services. Types of Social Enterprise. Many. Recipient Involvement. Limited. Common. Strategic Development. Foundations. Government/EU. University Research. Business and Social Science Social Science. Context. Market Economy. Legal Framework. Few. Lacking. Social Economy Underdeveloped but Improving. Source: Kerlin, 2006 10.

(19) Based on different context or focus on different interest, many sectors in Asia started to move their eyes on the promotion of social enterprise. One of the best well-known Asian social enterprises is the Grameen Bank, a microfinance institution started by Professor Muhammad Yunus in Bangladesh in 1983. The Bank makes small loans to the poor to enable them to build their businesses and pull themselves out of poverty. In just 20 years, the Grameen Bank has expanded its reach to over 2,500 branches across Bangladesh. In 2006, Professor Yunus and the Bank were jointly awarded the Nobel Peace Prize. For the other countries in Asia, Korea government issued Social Enterprises Development Law in 2007 and set up the Social Enterprises Support Committee under the Ministry of Labor to coordinate the promotion and support of social enterprise. From this positioning, the main purpose of social enterprises in South Korea is more focus on creating jobs. Thailand government also established the Social Enterprises Promotion Committee under the Prime Minister's Office since 2009, the Thai Social Enterprises Office directly undertakes research and development of social enterprises policy from 2010. A development strategy, social enterprises ordinance was issued in 2010-2011, and at present, a new legal document is being drafted. As for Singapore government established a social enterprises Office located in the Community Development, Youth and Sports from 2006, also emphasized the role of social enterprises in helping government to create jobs for disadvantaged community groups. As for the development of social enterprises in Taiwan, according to Kuan (2007), nonprofit organization with a commercial approach or for-profit business units began to emerge as early as at the beginning of the 1990s, with examples like the bakery-restaurant of Children Are Us Foundation, Wheelchair business of Eden Social Welfare Foundation, Car wash centers and gas stations of the Sunshine Social Welfare Foundation, or the sale of books, cards and eco-tours of the Society of Wilderness. Also, from end of the 1990s till now, Taiwan’s public sector, in an effort to alleviate the social impacts of rising unemployment rates, began to roll 11.

(20) out relevant policies like the Social Welfare Industrialization Policy, the Multi-channel Employment Service Program launched by the Council of Labor Affairs, and the Industrialization of Care Services jointly launched by the Council for Economic Development, Health Department and Social Affair authority. As a result, many nonprofit organizations started to incorporate for-profit, commercial activities into their regular operating plans. This approach in essential is similar to the Social Economy and Social Enterprise policies launched in continental Europe.. 2.1.3 Types of Social Enterprise. In view of the existing discussion, although social enterprise does not exist in any certain type and it makes people confused, people now could start to understand the concept of social enterprise as hybrid organizations or a spectrum which proposed by Alter (2006). He developed the hybrid spectrum to identify social enterprises. His hybrid spectrum clearly identifies social enterprises as a form of non-for-profit organizations that differ from the nonprofits that engage in income generating activity. On the spectrum, hybrid organizations are organized by degree of activity as it relates to: motive, accountability, and use of income. This enables the spectrum to be organized into four categories of hybrid organizations: 1). Nonprofits with income-generating activities.. 2). Social enterprises.. 3). Socially responsible businesses.. 4). Corporations practicing social responsibility (see Figure 2-1).. 12.

(21) Figure 2-1 Alter’s Spectrum. Figure 2-1 Alter’s Spectrum. And based on the hybrid organization spectrum proposed by Alter, Haughton (2008) classified social enterprise to 3 modes by operation model of as below. 1). The leveraged non-profit venture: Because the public wealth government provides is not sufficient for the need of society. The NPO is re-invested with return.. 2). The hybrid non-profit venture: This type of organization tends to create lots of innovative idea, and because of trying not to in favor of profit or non-profit organization. 3). The social business venture: That enterprise adapts this kind of operation model prefers to think of profit, but still hopes to differentiate from main stream business and to achieve particular goal. In addition to the types mentioned above, accordance with Taiwan scholar Cheng. (2003), who classify social enterprise to the following 4 types by operation model: 1). The corporation invested by NPO.. 2). Organization affiliated by NPO, charge as market.. 3). Cooperative organization.. 4). Micro enterprise in Europe. For the classification from Kuan (2013), social enterprise was classified to 5 types as. following by the purpose of setting up social enterprise. 13.

(22) 1). Work Cooperative: The social enterprise from this type operates by business model, but the source of fund is still need to be supported by government and donation from the public.. 2). Urban Community Development: NPO for community development.. 3). Offering Products and Service: The service or products must be associated with the mission of social enterprise.. 4). Venture Philanthropy: Distribute profit to multiple NPOs.. 5). Social Corporation: Encourage the stakeholder inside the social enterprise to participate organization faire.. 2.1.4 Business Model of Social Enterprise. For survival, every organization develops a set of activities for particular environment, which is called business model. Hamel (2000) thinks business model is the way which enterprise creates value, comprising core strategy, strategy resource, customer and value chain. Besides, business model is also can be considered as the value position of industry, value creating and the way to obtain surviving resource. So it will be helpful if people understand social enterprise through their business model. However, the difficult part is every enterprise has its own goal and different enterprise tend to adopt the most suitable way they think to operate. Not mention for social enterprise, it has both social and economic goal. These characteristics make the business model of social enterprise different from common enterprise or nonprofit organization. Business Model Canvas is a familiar analytical framework for business model. This idea was proposed by Osterwalder (2005) and his team, explains how an enterprise to profit by 14.

(23) organizing below factors systematically: 1.. Infrastructure (a). Key Activities: The most important activities in executing a company's value proposition.. (b). Key Resources: The resources necessary to create value for the customer. They are considered an asset to a company, which are needed in order to sustain and support the business. These resources could be human, financial, physical and intellectual.. (c). Partner Network: In order to optimize operations and reduce risks of a business model, organization usually cultivate buyer-supplier relationships so they can focus on their core activity.. 2.. Offering (a). Value Propositions: The collection of products and services which a business offers to meet the needs of its customers. According to Osterwalder (2005), a company's value proposition is what distinguishes itself from its competitors.. 3.. Customers (a). Customer Segments: To build an effective business model, a company must identify which customers it tries to serve. Various sets of customers can be segmented based on the different needs and attributes to ensure appropriate implementation of corporate strategy meets the characteristics of selected group of clients. The different types of customer segments include:. (b). Channels: A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective.. (c). Customer Relationships: To ensure the survival and success of any businesses, 15.

(24) companies must identify the type of relationship they want to create with their customer segments. 4.. Finances (a). Cost Structure: This describes the most important monetary consequences while operating under different business models.. (b). Revenue Streams: The way a company makes income from each customer segment.. As mentioned above, the business model of social enterprise is usually different from other common organizations accordance with its mission. So there are some scholars have proposed different framework for analysis. Domestic researcher Yang (2009) proposed a theory model of social enterprise different from the classification of western scholar’s theory after studying and analysis domestic corporation enterprise, which includes 6 sectors. 1). Value claim: The value claim of social enterprise shall comprise social mission, value transmit.. 2). Business strategy: Business strategy means the direction and position of social enterprise in the future.. 3). Revenue organism: Social enterprise shall combine the value of social and economic and turn them to competence. It is necessary to conduct market segment, define target market and predict consumer demand.. 4). Deploy resource: Social enterprise cannot distribute surplus wantonly, so it needs to combine different resource more to implement its strategy.. 5). Value chain: Value chain means the organism that to create value for customer and the partners in this organism. Organization plays an important role for value creation. Therefore, organization needs to coordinate with suppliers and customers.. 6). Sustainability: Weerawardena and Mort (2006) proposed the sustainability is a core value 16.

(25) of an organization and efforts on the ability for innovation and risk management.. 2.1.5 Legal d Development of Social Enterprise. After economic crisis and with the emerging of social enterprise, many governments start to realize that there may be a different way to solve social issues no matter they are conventional or emerging one, especially when governments are in financial difficulty. At the same time, when governments try to place hopes on social enterprise to solve the problems such like education, poverty, unemployment and so on. They found it would be better to regulate it based on its hybrid organization type, functions or relative weakness. In accordance with Teng (2014), the current legislation condition or the process to regulate social enterprise can be classified 3 ways. 1). Regulated in a specialized law: In this case, countries passed the specialized law for social enterprise. For examples, based on employment promotion Korea government passed social enterprise promotion act in 2006. And in this act, social enterprise is clearly defined and government has obligation to promote social enterprise.. 2). Regulated in different laws: For United Kingdom, in 2004 government passed the Companies (Audit, Investigations and Community Enterprise) Act 2004. In this act, a new company was formed which named Community Interest Company. This type was designed for social enterprises to use their profits and assets for the public good. Besides, on 19 March 2014, the U.K. government announced the introduction of the Social Investment Tax Relief to encourage financial investment in social enterprises. Effective 6 April 2014, this provides 30 percent tax relief to those who qualify. The tax relief is specifically targeted at regulated social enterprises namely: 17.

(26) (a) Community interest company (b) Community benefits society that is not a charity (c) Charity (d) Any other body prescribed, or of a description prescribed, by an order made by the U.K. Treasury. Like United Kingdom, the promotion for social enterprise in United States is basically adopt tax-relief way and is included in General Internal Revenue Code, which is a federal statutory tax law. And it defines social enterprise and grant tax relief if organization qualified. In addition, some states in U.S even started to create a new legal form named low-profit limited liability Company, for solving the problem positioning social enterprise. 3). Setting up an official mission but legislation: According to Teng (2014), unlike the countries mentioned above, Singapore government adopted a different approach to develop social enterprise. They set up Ministry of Social and Family Development (MSF) for handling all issues related with social enterprise. And built up Social Enterprise association for assist new-established social enterprise with knowledge, fund, or advisory. Unlike Korea government, presently there is no specific law for social enterprise in. Taiwan, and the related terms were based on other laws, such like civil law, tax law or laws which regulate NPO. Besides, a lot of relevant administrations also have not been integrated in different government departments in Taiwan. But the amount of registered corporation with the name of social enterprise now is about 47. According to the statistics from Fu Jen University, there are 200~1000 enterprises take social problem-solving as their main purpose or one of purposes. Therefore, it would be better to consider to regulate it for promotion or balancing the elements among share holder or character of public benefit.. 18.

(27) 2.2. Brief Summary. If social enterprise was adopted as a key word for searching relevant study in National Digital Library of Theses and Dissertations in Taiwan, there were nearly 200 papers can be found. Those relevant researches on social enterprise emphasize some certain points and could be summed up to several types as arranged Table 2-2 below. 1). In previous studies, many researchers focus on single social enterprise. And the analysis framework used is usually business model canvas or business model theory proposed by Yang (2009). Chang’s (2013) “The Innovation Business Model of Social Enterprise- The Leezn Company Ltd. Case Study” could be the model of these kind of research. However, whatever analysis framework was adopted this kind of research is not easy to exam different social enterprises under the same research background at the same time. In addition to the single social enterprise, famous and more successful cases are tend to be selected due to social enterprise is an emerging idea in Taiwan. Most of them are in the phase of exploration, even their leader cannot be sure if their business model would be successful or not.. 2). The study about how a nonprofit organization evaluates to transform or operate a social enterprise. Like Chen’s (2013) “The Evolution of Business Model for Social Enterprise: A Case Study of Non-Profit Organizations in Taiwan”. These researches tend to put the points on the obstacles when transformation or which business models they should use.. 3). Thirdly, the associativity between each factor influence in single social enterprise.. 4). And the last castigatory is the common enterprise who intended to access the area of social enterprise and the discussion for CSR. In these studies, there is only one research discuss the development of social enterprise overseas. For the type of socially responsible businesses which the types proposed by Alter (2006), it also needs more innovative way 19.

(28) to achieve their mission. But, this kind of research tend to focus on what kind of benefit bring to common enterprise. For the characteristics mentioned above, the current social enterprise research have the following obstacles, which includes the cases selected are limited in a single geography area which is Taiwan. It means it is not easy for the people to refer to the development oversea, it is difficult to detachment social enterprises from bigger structure like economic or culture at all and exam it isolate. For innovation it would be also helpful to refer to the case overseas. Yeh’s (2009) “A Study of America, India, Hong Kong Social Enterprises: Its Business Strategy to Success” is the only research discussed foreign social enterprise so far. The second obstacles here is most researches are focus on single case, so it is hard to conclude or classify them by business model theory despite the related research is getting more. So people could not know if there is any pattern or model exist even using the same business model theory in different researches. The last issue is the current study in Taiwan is focus on the establishment and the problem they are trying to solve in single case. However, there are several successful cases have been mentioned repeatedly. It would be helpful to refer to the case overseas for innovation.. 20.

(29) Table 2-2 Relevant Research on Social Enterprise Item. Author. 1. Wu, ChihChieh / 2014. An Explorative Study on the Business Models of Social Enterprises. Hua, Jia-Yu / 2014. The analysis of Business Model for Social Enterprise : A Case Study of Vulnerable employment-based social enterprise in Taiwan. 2. 3. Title. Huang, Cheng- Business model of Homemaker's Union Yu Consumer Cooperative - in the view of / 2013 social enterprise. 4. Chen, ShwuChuan / 2013. The Evolution of Business Model for Social Enterprise : A Case Study of NonProfit Organizations in Taiwan. 5. Chang, TzuChun / 2013. The Innovation Business Model of Social Enterprise| The Leezn Company Ltd. Case Study. 6. Liao, Pei-Chun The study on business model of social / 2013 enterprise in Taiwan. Focus The purpose of this research is trying to search the potential business model in healthcare and microfinance as a reference for future social entrepreneurs. This study used business model Canvas to study the business model the vulnerable employment-based social enterprise selected. Through the application of this concept instrument to learn their operating status and make a comparative analysis, thus providing other social business planning and development of reference. To study the business model, organization and their association of Homemaker's Union Consumer Cooperative This study is to establish dynamic business model for social enterprise. Continued for previous research in business model and social enterprise business model, we expect to find out the evolution for business model in social enterprise, and offer what contributes to business model. Trying to find a common intersection between the general business or social enterprise, either theoretical models or concepts. Allows enterprise operations are owned reference to the successful model of the ultimate purpose of this paper. To explore the current development of social enterprise in Taiwan by 9 cases in Taiwan.. 21.

(30) 7. Shih, ChunChi / 2013. The Entrepreneurial Process and Business Model of Autonomous Social Enterprise in Taiwan. To understand the entrepreneurial motivation from selected case, and inquire how they found social gap and made their own resources to build a combination of social and commercial purposes of the social enterprise.. 8. Wu, Yi-Jung / 2013. The business model of social enterprisesCase study of Lee-Zen company. This study aims to summarize and analyze the business model and key success factors. Wang, Ju-Lan / 2013. A Fair Trade and Sustainability Agricultural production and distribution System-The Business Model Canvas of Social Enterprise Developed From Locavore Movement. To study the business model of social enterprise whose value proposition is locavore movement from the aspects of sustainable environment protection and fair trade, And advice the people who would like to build a sustainable agriculture production-marketing system. This study of social enterprises and business models to explore in greater depth at the same time, and continue Yang Ming Yin et al (2009) constructed the business model, the use of case studies on social business case companies explore in more depth and analysis, and propositions to put forward social enterprise business model.. 9. 10. 11. Ou, GuanLiang / 2011. A Case Study on Business Model of Social Enterprise. Yeh, Chu-Li / 2009. A Study of America, India, Hong Kong Social Enterprises: Its Business Strategy to Success. Through analyzing the official websites and related secondary data, inducting the strategy of these three social enterprises.. Arranged by Author. 22.

(31) CHAPTER THREE RESEARCH METHODOLOGY. The purposes of this research is try to understand the practical operation from social enterprise in Southeast Asia by analyzing their business model, and bring different aspect to Taiwan’s initiatives. For deeper understanding, qualitative research method will be adopted in this research. There are 9 cases will be selected as study objects, and related literature, cases and information from interview will be analyzed under the theory of business model proposed by Yang (2009). These selected cases will be examined with its six dimensions of business model, include value claim, business strategy, revenue organism, deploy resource, value chain, sustainability streams for current status.. 3.1. Research Framework. Because there will 9 cases will be selected as research object for trying to know the current development of social enterprise in Southeast Asia area, the research framework will be set up with literature and cases interviewed. In the beginning, to understand the selected cases belong to which classification proposed by Alter, and analyzing them by the theory of business model proposed by Yang (2009). The reason for choosing Alter’s theory for social enterprise as framework is as mentioned in the prior sector, there are lots of characteristics of social enterprise are overlapped with many concepts which already existed. The spectrum 23.

(32) theory proposed by Alter is a concept which accepted widely in academic circles and it also allows researcher to have widest flexibility to select cases. As for Yang’s business model theory, despite there are also different business model such like Business Model Canvas. However, as motivation mentioned in the beginning, the related studies for social enterprise is relatively rare in Taiwan no matter compared to the subject common enterprise or non-profit organization. In the other word, one of the major practical problem now is there is not enough cases, but use the different business model or dimension to exam. Yang’s business model theory has been adopted in several studies for social enterprise. One of the benefits for adopting his theory is it is easier to compare difference cases even they are not in the same study, because they are analyzed under the same framework. Besides, for the object with greater scope like social enterprise, Yang’s theory seems easier or lean to exam. Based on Yang’s theory, the cases interviewed will be measured by 6 dimensions - Value claim, Business strategy, Revenue organism, Deploy resource, Value chain, Sustainability. These dimensions can help to exam the research current development of the research. The below is research framework. (Figure 3-1). Figure 3-1 Research Framework 24.

(33) 3.2 Research Approach. The main purpose of this research is try to understand the development in other countries for reference. Compared to the countries in Southeast Asia, East Asia countries hold resemble culture and face similar problem, and social enterprise issue may be associated with sensitive political problem in certain country. Besides, due to historic origins this area have been receiving lots of foreign aid and use these funds for making social change. For sustainable operation many of them are arranged as a type of social enterprise. Therefore, after evaluating diversity and convenience for interview Southeast Asia has been selected as considerable target area. But there are huge divergences on the progress of economic development in these countries. For letting this research can be analyzed under a similar background, Vietnam, Laos, and Cambodia were be selected as the countries where to seek to social enterprise. They and Myanmar are classified as late-developing countries in ASEAN 1 , and they have resembled experience in modern history. Some related social enterprises have been contacted and asked for interview before departure to Southeast Asia. However, there were some people not available then, so some case sources were recommended by case interviewed there. It took around 1~2 hours for each interview and if there is anything interviewee would like to replenish. They would send relevant data or information by mail to me. Below (Table 3-1) is the information for interviewees.. 1. ASEAN : Association of Southeast Asian Nations 25.

(34) Table 3-1 Interviewees Information Country. Laos. Cambodia. Name of Social Enterprise. Legal Form. Location. Founder. Interviewee. Interviewee’ Title. 2002. The year of Established. Lao Disabled Women's Development Centre. NPO. Vientiane. Chanhpheng Sivila. Kinnalone Nueaneviengkham & Emi Weir. Deputy Director of Social Development Manager and Marketing Manager. Fair Trade Laos. Enterprise and NPO. Vientiane. Uncovered. Anousone Phimmachanh. Project manager. 2008. FruitFriends. Enterprise. Ward Reekmans. General Coordinator & Advisor. 2011. Ma Té Sai. Enterprise. Concert. Enterprise. Vang Vieng Ket Vannatham. Luang Prabang. Creating practical opportunities for people with disabilities through vocational training and life skills training and advocating for the rights, recognition and equal opportunity of disabled women by promoting awareness and raising the profile of disabled women. To promote the ideas and concept of Fair Trade in Laos and empower small scale producers on their efforts to combat poverty, strengthening their economic position with Fair Trade product distribution both inside and outside Laos. Profits from agriculture are used to establish local community projects based on education. Creating a larger market for gift and household items made by people all over Laos and offering a higher and more sustainable income back to poor and vulnerable Lao artisans. To turn people's good intentions into the best possible help for the most vulnerable people in Cambodia. Increase income of rural farmer by butterfly breeding. Increase education opportunity by running guesthouse.. Emi Weir. Manager. 2011. Siem Reap Michael Horton. Lanh Sokha. Programme Support Officer. 2008. Enterprise. Siem Reap Benjamin Hayes. Unknown. Operation manager. 2009. Enterprise. Siem Reap. Hank Hsu. Hank Hsu. Funder. 2008. ZÓ PROJECT. Enterprise. Hanoi. Trần Hồng Nhung. Nguyen Le. Financial manager. 2013. To preserve traditional Vietnam Do paper by selling craft and art product produced by ethnic minorities and rural women.. Tea Talk Café. Enterprise. Hanoi. Michael Ong. Pham Thi Phuong Luong. Consulting Supervosor. 2012. Tea Talk Café creates employment opportunities for young social workers in Hanoi.. Angkor Butterfly Centre AngkorWall-Coffee Hostel Gallery. Emi Weir. Main activity. Vietnam. Arranged by Author 26.

(35) 3.3 Research Method. The research method refer to a way comprising collect, analysis, summarize, and technique for study, such like case study method, in-depth interview, and so on. It could adopt different method in a research. Compare with U.S. and Europe, social enterprise is still an emerging idea in Asia, plenty of them are just in the beginning phase. The major characteristics of this kind of enterprise are small size, non-public-traded company, and with special mission different form common enterprise. In addition to, each organization has its unique way for operation, it is difficult to understand its operation by questionnaire survey. For more details regarding operation of social enterprise and connection between factors and consequence of their success or failure, case study method will be adapted in the process for collecting related case information from texture. Then, to interview the founder or manager of the selected social enterprise accordance with the information obtained from case study.. 3.3.1 Case Study Method. If people try to find a common definition case study, there would be lots of ideas about what a case study is. The idea of case study usually refer to a statement of incident, includes description of facts and lots of unprocessed information. According to Thomas (2011), case study is an analysis of persons, events, decisions, periods, projects, policies, institutions, or other systems that are studied holistically by one or more method. The case that is the subject of the inquiry will be an instance of a class of phenomena that provides an analytical frame — an object — within which the study is conducted and which the case illuminates and explicates. Besides, Yin (2003) points out a case study design should be considered when: 27.

(36) 1). The focus of the study is to answer “how” and “why” questions.. 2). The behavior of those involved in the study cannot be manipulated.. 3). People want to cover contextual conditions because they are relevant to the phenomenon under study.. 4). The boundaries are not clear between the phenomenon and context. Therefore, researcher need to figure out what the actual situation is by finding out. potential question in the study, then develop a possible solution for solving problem. So case can be seen as a tool case thinking and action. Due to one of the purpose of this study is to understand the business model in the selected Southeast Asia area, and after considering the convenience and the possibility to accomplish this research. The cases will be selected from the countries, includes Laos, Cambodia, and Vietnam.. 3.3.2 In-Depth Interview. Based on the study of Boyce & Neale (2006), In-depth interviewing is a qualitative research technique that involves conducting intensive individual interviews with a small number of respondents to explore their perspectives on a particular idea, program, or situation. For example, we might ask participants, staff, and others associated with a program about their experiences and expectations related to the program, the thoughts they have concerning program operations, processes, and outcomes, and about any changes they perceive in themselves as a result of their involvement in the program. In addition, In-depth interview is not only a way of collecting information, but also can contact with interviewee directly for collecting information. Especially, interview can continually find out the question occurred during interview by interviewee’s direct reaction. 28.

(37) For understanding the current status more and related issues, interview will be semi-structured. Which means the interviewees will be asked for the same questions prepared. The cases in this research are selected by judgmental sampling, and main interviewees in this research will be their manager or supervisor. Based on the business model theory which proposed by Yang (2009), social enterprise would be analyzed from six dimensions, which includes value claim, business strategy, revenue organism, deploy resource, value chain, sustainability. For understanding these six dimensions on practical operation of selected social enterprise, the questions in the Table 3-2 are prepared as interview outline. The other deeper or relevant questions will be explored depend on necessity.. Table 3-2 Interview Outline Item. Business Model Framework. 1. Value claim. 2. Business strategy. 3. Revenue organism. 4. Deploy resource. 5. Value chain. 6. Sustainability. Question Why did you set up this organization? What did you think which kind of value/benefit can offer to the client / target group? What kind or how many services or products do you offer? How do you choose your client? How do you make your revenue? Is revenue enough for organization self-sufficient? Where does your funding come from? Donation, revenue from trades? How did you distribute your profit? What do you think which advantage your organization possesses? What things make your organization unique? How do you find your suppliers? (who need your help most) How do you cooperate with these suppliers? How do you maintain the relationship with your customer? How do you manager risk? Which innovation are you developing for the future?. Source: Author. 29.

(38) CHAPTER FOUR ANALYSIS AND RESULTS. The cases studied in the research are come from Southeast Asia, and they have similar origins in modern history. All of them had been colony of French, encounter Vietnam War, and transformed their economic from a central-planned economy to market-oriented since 1980s, and based on economic performance these countries all belong to late-developing countries of ASEAN (Association of Southeast Asian Nations). On the contrary there are also differences, compare with the other two countries Laos is an inland state and it reflects their difficult position on economic. Besides, despite all of them are dictatorship state, Vietnam and Laos are communist country, Cambodia is a Kingdom. For these countries, each of them has their own language and alphabet. But due to similarity on culture and language, for people in Laos they could communicate with Thailander easily, it also causes many people work or move to Thailand, especially people who live near boarder. The below (Table 4-1) is a context comparison table of selected countries.. Table 4-1 Comparison Table of Countries. Lao PDR. Cambodia. Vietnam. Taiwan. 6.7. 15.14. 89.7. 23.32. Inflation. 6.40%. 3.90%. 4.10%. 0.80%. GDP Growth. 8.50%. 7.40%. 5.40%. 2.10%. 11.2. 15.24. 171.4. 511,293. 1660.7. 1006.8. 1910.5. 22598. Population. GDP GDP Per Capita. Resource: World Bank (2013), arranged by author 30.

(39) 4.1. Laos 4.1.1. Country Profile. Although economy of Lao People's Democratic Republic continued its robust expansion with growth around 7.5 percent in 2014, with domestic demand fueled by robust activity in construction, forestry and services. Laos used to be the poorest member of the ASEAN group, they still need foreign aid until now. Its GDP is roughly one-fifth of neighboring Myanmar. During the period that establishment of the Lao People's Democratic Republic to 1986, there were only three International NGOs (INGOs) allowed to operate in Lao People's Democratic Republic – Mennonite Central Committee, American Friends Service Committee and Save the Children Fund UK. These organizations provided humanitarian and development services in restricted geographical areas, and under other operational limitations including on hiring local staff. After the adoption of the New Economic Mechanism in 1986, gradually, more international NGOs gained permission to operate in Lao PDR, mostly working in community development and service delivery. But for government the work of the NGOs represents a threat, so the government is trying to deal with the threat by increasing its control. And that also make government hesitated to give social enterprise permission.. 4.1.2. Case Introduction 4.1.2.1. Lao Disabled Women’s Development Centre. Lao Disabled Women’s Development Centre was founded in 1990 as a sewing group 31.

(40) in the home of the director, Madam Chanhpheng Sivila. She is also a disable woman due to contracted Polio at age of 3. In 2002, for raising more awareness the Lao Women with Disabilities group became the Lao Disabled Women’ Development Centre officially. It is a nonprofit organization, and the centre believes that everyone has unique abilities because everyone is different. She is also a strong supporter for the fundament of this center. In this country it is easier to discuss with government if you have some kind of connection with them, and Chanhpheng’s family support this centre a lot. In the beginning, the land where the centre located now is offered by Laos government and funding was come from Japanese International Corporation Agency and Okinawa Colony. The mission of this centre is to empower women to engage their abilities through providing access to education and employment. For this mission the Center works with the government of Lao People's Democratic Republic and other partners (such as The overarching goal of Cooperative Orthotic and Prosthetic Enterprise or Association for Autism in Laos) In addition, for encouraging the understanding and acceptance of people with disability in mainstream society the Centre’s activities are divided into two separate yet equally important parts. The first part is to create practical opportunities for disabled people through vocational training and life skills training. The Centre empowers individuals by facilitating understanding of their abilities and supports them by creating a peer support. The second part is to be an active advocate for the rights, recognition and equal opportunity of disabled women by promoting awareness. Since 2002, the centre has delivered vocational training to more than 400 disabled women around Laos. It provides training in sewing, weaving, handicrafts, computers, healthcare, small business skill, and English. These offered training as part of a nine month comprehensive training program at the centre and as short courses run in different locations throughout Laos. Each year up to 30 new students undertake the comprehensive training program and live at the centre during this time. 32.

(41) Nowadays Lao Disabled Women’s Development Centre still receives funding from many INGOs and foreign governments. But for reducing the reliance on donation and getting more independent or sustainable, the program of social enterprise model has been developed. Revenue streams of the centre come from the several source below. 1). Handicrafts selling: Handicrafts and textiles produced in the centre open to the public. (basically foreign tourists). 2). Centre tours: To transform the centre to become a tourism factory and the employees can introduce the center for tourists for practicing their English ability.. 3). Project: With the demand for traditional Laos handicrafts getting increased and Vocational training as a main activity in the centre. Some of businessmen hope the centre can teach them more skilled artisans for fulfilling the market demand.. 4). Others (Mushroom cultivation, the skill donated from NPO in Canada. 4.1.2.2. FairTrade Laos. Fair Trade is a social movement initiative since 1960, and it has been trying to establish trading partnership, based on dialogue, transparency and respect, all these seek greater equity in international trade. It contributes to sustainable development by offering better trading conditions, and securing the rights, marginalized producers and workers, especially in the South. More important things are that consumers can use this powerful way to reduce poverty through their everyday shopping. Based on this idea, Fair Trade Laos was created in 2008 by a small group business people and NGOs, and they considered social and economic viability of Fair Trade can improve producers and farmers’ lives and concurrently offering high-quality products. 33.

(42) In the beginning, Fair Trade Laos has been trying to promote the ideas and concept of Fair Trade in Laos and empower small scale producers on their efforts to combat with poverty, strengthening their economic position with Fair Trade product distribution both inside and outside Laos. Over the years, Fair Trade Laos has gradually adjusted the proportion of revenue for trying to reduce the reliance from donation. For this goal, they have applied enterprise permission to replace temporary license of NPO issued in 2008. Because government forbidden NPO to sell service like certification or consultancy. However verification executed by government is very slow, due to the officials do not know what the social enterprise is and most important thing is they have been insisting that they do not bride officials. From early 2011, Fair Trade Laos has been evaluated the suitable methods for Lao certification body recognized by both local and international consumers and other national certification bodies as a first step for members to realize these potential advantages. So far they have developed two kinds of certification, one is Company based (Corporate Social Responsibility), and the other one is Product based (Fair Trade). Company certification will be approved for the internal management system of the company. After passing the evaluation process, company will be granted membership of Fair Trade Laos and authorized to use Fair Trade Laos Company logo on poster, brochures, website and retail shop displays, etc. Regarding the Product base (FT), it is for specific approved products. Members select products for submission and approval. For each selected product, the value-chain information will be provided to FTL. As mentioned above, for increasing the proportion of income Fair Trade Laos has launched a new service, which is to provide members consultancy service. Currently, the revenue created by offering service is account for 30%, the rest part is still come from donation. For solving this problem FairTrade Laos offers advanced membership, so the local businessman may obtain the business skill that lack in Laos. However, they do have trouble on the issue of human resource and it limits their development. Because most of their 34.

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