Review on

“Enhancing Employment of People with Disabilities through

Small Enterprise” Project (3E’s Project)

26 July 2006

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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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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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Evaluation on Implementation

Applications Received

87

Supported Businesses

38 Businesses from 20 NGOs (9 Subsidiaries)

No. of Applications under Processing

1

Approved Funding $19.9 MnEstimated No. of Jobs Created

496 (357 for PWDs)

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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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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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Evaluation on Implementation Cleaning Service

General Cleaning

Pest Control

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Evaluation on Implementation

Laundry Service

Car Beauty Service

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Evaluation on Implementation Retail

Direct sales Family store

Healthy Living Specialty Shops (Open soon)

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Evaluation on Implementation

Cultural kiosks in park

7-11 convenience store Rehab Shop

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Evaluation on Implementation

Floral Design & Sales

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Evaluation on Implementation Catering

Catering service

Restaurant at private housing estate

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Evaluation on ImplementationVegetable & Fruit Processing & Supplying

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Evaluation on Implementation Travel Service

Eco-tourism

Travel & Conference Organizing Service

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Evaluation on Implementation Others

Telemarketing Service

One-Stop Household Service

16

Evaluation on Implementation

Barrier Free Access Technology Service

Mobile Massage Service

17

Evaluation on Implementation

Perfection Transport

Repair & Maintenance Service

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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 / SpeechImpairment (1%)

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Evaluation on Implementation

Source of Disabled Employees (as at May 2006)

Total: 328 PWDsSupported Employment (55%)

IVRSC (17%)

Open Recruitment (9%)

On-the-Job Training (6%)

Sheltered Workshop (4%) IVTC/Skills Centre (4%)

Others (4%)

SpecialSchools (1%)

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Evaluation on Implementation

Income of Employees (as at May 2006)

Employees Disabled Staff(HK$)

Able-bodied Staff(HK$)

Full-time Part-time Full-time Part-time

Average Income

$3,902 $1,960 $8,541 $2,577

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Evaluation on Implementation

Change of Financial Status (as at May 2006)

Able-bodied Staff

Disabled Staff

Total

From Unemployed CSSA to Low Income CSSA

58 221 279

From CSSA to Non-CSSA

4 21 25

Total 62 242 304

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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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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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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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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 providin

g vocational training Promoting NGOs’ cooperation with private enter

prises and public/government departments Facilitating the setting up of social enterprises

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Challenges

Decreasing number of applications

2001-02 2003-04 2004 -05 2006-07(as at

6/2006)

No. of Applications 33 37 13 4

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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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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

Thank You