Social Enterprise Development in Taiwan

1
Social Enterprise Development in Taiwan

• Yu-yuan Kuan
• Department of Social Welfare
• Chung-Cheng University, Chiayi, Taiwan
• April 6, 2006

2
Introduction

• The topic of this paper is the development of
  social entrepreneurship in Taiwan since the late
  1980s.
• A variety of nonprofit organizations (NPO)
  emerged and developed during this period.
• The concept of social entrepreneurship has found
  an echo in Taiwan and concrete examples of social
  enterprises can be found.

3
Social Enterprises in Taiwan-the Broad Context

• 1. The definition of SE in Taiwan
• 2. The main factors behind the emergence of SE in
  Taiwan
• ? Social needs to be answered
• ? Achieving financial stability anticipated by
  NPOs
• ? The privatization of social welfare and the
  purchase of services contracting
• ? Government policies and subsidies
• ? Companies paying attention to corporate social
  responsibility.

4
Categories of Social Enterprises

• 1. work integration or affirmative businesses
• 2. local community development organizations
• 3. social enterprises providing social services
  and products
• 4. venture capital business created for the
  benefits of NPOs
• 5. social cooperatives.

5
Five types of SE with Special characteristics and
service specific groups

• 1. Type 2 helps the cultural and economic
  development of regional communities.
• 2. Type 1 addresses the employment problem of
  disadvantaged groups.
• 3. Type 4 emphasizes the generation of surpluses
  by a for-profit company to benefit the charitable
  activities of a NPO.

6

• 4. These five types of social enterprises are not
  mutually exclusive.
• 5. Venture capital businesses and social
  cooperatives in Taiwan are at an initial stage.
• 6. Social enterprises set up by local community
  development organizations play an important role
  in developing the civil society spirit and in
  integrating the local forces.

7

• 7. Work integration or affirmative businesses and
  enterprises providing social services and
  products are the most visible forms of social
  enterprises in Taiwan.
• 8. Some of these NPOs have achieved notable
  results in terms of vocational training,
  counseling and job placement for their
  beneficiaries.
• 9. Most of these enterprises are small in size,
  and the beneficiaries they employ can only
  receive a small salary.

8
The Role Played by Government

• In Taiwan, the government offers advantages to
  social enterprises of NPOs
• 1. provide human resource support
• 2. offer material assistance and service sale
  assistance
• 3. provide leases on land and special rights on
  buildings
• 4. political figures help promote the products
  and services of social enterprises.

9

• The subsidies for personnel and the special
  rights to land and building offered by Govt.
• 1. Helping NPOs avoid the competition of
  for-profit businesses
• 2. Allowing NPOs to benefit from protection and
  enjoy beneficial terms in certain business areas.
  

10
(No Transcript)
11

• On the contrary, the government has also obtained
  the support of NPOs in addressing numerous social
  problems, such as
• 1.unemployment of middle-aged workers,
• 2.home based community care for elderly people,
• 3.the rehabilitation, training and employment of
  people with disabilities

12
Government brings certain disadvantages to SE NPOs

• 1. NPO over reliance on government funding
• 2. financial burden of NPOs that must pay certain
  fees to the government
• 3. unclear regulations for the status of
  sheltered workshops.

13
(No Transcript)
14

• If NPOs running social enterprises rent the
  lands, buildings and facilities owned by the
  public sector, they must pay rent fees, gift
  funds in return, and other related tax fees.
• Case the Sunshine Social Welfare Foundation runs
  a gas station in Taipei. Pay annual fees to
  Taipei City Government totally 17 - 20 of its
  annual running business expenditures.

15
Conclusion

• Although government policies and subsidies
  encourage the development of social enterprises,
  they also represent an obstacle.
• Financial resources are not enough for NPOs
  operating social enterprises.
• The current development trends most NPOs still
  hope to obtain government subsidies for their
  social enterprises.