HONG KONG ADOPTS IMPACT INVESTING TO CURB SOCIAL PROBLEMS
Hong Kong is home to diverse parties willing to invest financial, intellectual and human capital in innovative ways to achieve social impact. “No one will deny that Hong Kong has crowds of enthusiastic businessmen, corporations and people who want to give a helping hand to society,” says Francis Ngai, founder and CEO of Social Ventures Hong Kong. Why does social enterprise play a critical role in Hong Kong and China?
Hong Kong is becoming a hot spot for impact investing and venture philanthropy, with networks like Social Ventures Hong Kong (SVHK) leading the way.
“No one will deny that Hong Kong has crowds of enthusiastic businessmen, corporations and people coming from different backgrounds who want to give a helping hand to society,” says SVHK founder and CEO Francis Ngai.
SVHK, a subsidiary of the 30S Group, was established in 2007 and aims to support social purpose organizations or SEs in Hong Kong. According to SVHK, Hong Kong is home to diverse parties willing to invest financial, intellectual and human capital in new approaches to achieving social impact. The expert knowledge and business networks in Hong Kong can help social enterprises (SEs) develop top-quality business proposals and extensive networks.
Social enterprise has the potential to play a critical role in Hong Kong and China. SVHK cites four main areas in which SE can make a difference: 1. Services for the elderly in response to the one-child policy, 2. Services for the poor in response to severe income disparity in major Chinese cities, 3. Social inclusiveness of disabled and minority populations, and 4. Innovative solutions for environmental pollution.
“China is choking with all types of pollution: air, water, sound, light, and our landfills are full.” Ngai says China is longing for innovative ideas to implement sustainable solutions.
Hong Kong has traditionally relied on government welfare and philanthropic funds to support those “within the safety net.” But as urban social problems complicate further, impact investing must step up build a bridge between mainstream investment money and social good.