Case Notes/Answers
IBAKERY HOW A HONG KONG NGO VENTURES INTO
SOCIAL ENTERPRISE by Sammy Fung Floerence Chan Lo
Discussion Questions:
1. What are the key features and characteristics of SEs? What are their implications?
2. Discuss the different approaches used to categorise SEs. What is the relevance of each
approach to iBakery?
3. Use iBakery as an example to discuss the components and elements of SEs.
4. Describe and evaluate SEs’ methods of performance measurement and performance
reporting.
5. Consider and discuss the factors affecting the success of an SE. What are the critical
success factors for iBakery to achieve self-sustainability?
, HKU996
SAMMY FUNG
IBAKERY: HOW A HONG KONG NGO
VENTURES INTO SOCIAL ENTERPRISE
Teaching Note
Synopsis
iBakery is the name of two social enterprises (“SEs”)—a bakery shop and a café—established
by Tung Wah Group of Hospitals (“TWGHs”) of Hong Kong with a social mission to train
and employ people with disabilities through the production and retailing of bakery products
and the operation of a café.1 The SEs originated from a bakery workshop that trained people
with disabilities. In running the SEs, more business elements have been introduced to try to
fulfil both social and economic goals. iBakery is unique among SEs operated by Hong Kong’s
non-governmental organisations (“NGOs”) in that it has a group of business professionals,
called “iBakery Angels”, forming an advisory board. With TWGHs as their strong backup,
the iBakery SEs are striving to meet the double bottom line. The SEs’ performance in meeting
the economic goal is far from satisfactory, as they are presently loss-making operations;
however, they are achieving good performance in meeting the social mission when measured
in terms of the Social Impact Assessment Tool. This case sheds light on the operations of SEs,
how they attempt to strike a balance on both economic and social goals, and how performance
measurement of social enterprises may be conducted. It also allows students to examine what
the SEs should do to achieve sustainability in the future.
1
Tung Wah Group of Hospitals is a renowned charitable organisation in Hong Kong. Hong Kong is the Hong Kong Special
Administrative Region, a city in the southern part of the People’s Republic of China. According to its official website, TWGHs
is the largest charitable organisation in Hong Kong. For over a hundred years, TWGHs’ medical and health, education, and
community services have developed rapidly to fulfil the needs of the society and to provide high-quality services at low rates.
At present, TWGHs operates over 230 service centres with a staff strength of over 10,000 members, and a total recurrent
expenditure close to HK$5.2 billion. Tung Wah Group of Hospitals (n.d.) “About Us”,
http://www.tungwah.org.hk/?content=314 (accessed 23 April 2012).
1
, 12/522TN iBakery: How a Hong Kong NGO Ventures into Social Enterprise
Conceptual Foundation and Teaching Objectives
This case deals with how an NGO ventures into running SEs. iBakery is an example of an
NGO-supported SE, one type of SE in Hong Kong. Its achievement with regard to social
impact is evaluated using the Social Impact Assessment Tool. The case provides an
opportunity for students to understand not only the concept of SEs but also the operations of
their key elements and components. In addition, it facilitates discussions on how SEs’
performance can be measured. Students may also analyse possible ways for SEs to compete
on the market and achieve self-sustainability.
The teaching objectives of the case are:
1. To provide students with a basic understanding of the concept of SEs.
2. To understand performance measurement of SEs.
3. To evaluate the strengths and weaknesses of SEs in the areas of corporate governance,
human resources management, and partnership with internal and external parties.
4. To examine possible ways for SEs to compete on the market and achieve self-
sustainability.
Suggested Student Assignments
1. What are the key features and characteristics of SEs? What are their implications?
2. Discuss the different approaches used to categorise SEs. What is the relevance of each
approach to iBakery?
3. Use iBakery as an example to discuss the components and elements of SEs.
4. Describe and evaluate SEs’ methods of performance measurement and performance
reporting.
5. Consider and discuss the factors affecting the success of an SE. What are the critical
success factors for iBakery to achieve self-sustainability?
Analysis
1. What are the key features and characteristics of SEs? What are their
implications?
In reviewing the literature on the definition of an SE, the only consistent point is the common
acknowledgement of a lack of an agreed-upon definition. 2 Though “it is unlikely that a
definitive set of characteristics applies to all kinds of social entrepreneurial activity across all
contexts”, it is nonetheless a less confusing and easier angle to begin understanding the
concept by examining the features and characteristics of SEs. 3 And even from this angle,
2
Dacin, P., Dacin, M. T. and Matear, M. (2010) “Social Entrepreneurship: Why We Don’t Need a New Theory and How We
Move Forward From Here”, Academy of Management Perspectives, 24 (3), pp. 37–57. In this article, Dacin et al. report that a
“lack of agreement on the domain, boundaries, forms, and meanings of social entrepreneurship (Peredo & McLean, 2006;
Perrini, 2006) results in a field of study characterized by no unified definition (Short et al., 2009), imprecision, and largely
idiosyncratic approaches” (p. 38).
3
Ibid., p. 42. Students who desire to have a more comprehensive view on the subject matter are recommended to read the
following: (1) for a summary of SE definitions and their implications: Dacin, P., Dacin, M. T. and Matear, M. (2010) “Social
Entrepreneurship: Why We Don’t Need a New Theory and How We Move Forward From Here”, Academy of Management
Perspectives, 24 (3), pp. 37–57; and (2) for a textbook written on the subject matter: Ridley-Duff, R. and Bull, M. (2011)
Understanding Social Enterprise: Theory and Practice, Sage Publications: Thousand Oaks, CA.
2
IBAKERY HOW A HONG KONG NGO VENTURES INTO
SOCIAL ENTERPRISE by Sammy Fung Floerence Chan Lo
Discussion Questions:
1. What are the key features and characteristics of SEs? What are their implications?
2. Discuss the different approaches used to categorise SEs. What is the relevance of each
approach to iBakery?
3. Use iBakery as an example to discuss the components and elements of SEs.
4. Describe and evaluate SEs’ methods of performance measurement and performance
reporting.
5. Consider and discuss the factors affecting the success of an SE. What are the critical
success factors for iBakery to achieve self-sustainability?
, HKU996
SAMMY FUNG
IBAKERY: HOW A HONG KONG NGO
VENTURES INTO SOCIAL ENTERPRISE
Teaching Note
Synopsis
iBakery is the name of two social enterprises (“SEs”)—a bakery shop and a café—established
by Tung Wah Group of Hospitals (“TWGHs”) of Hong Kong with a social mission to train
and employ people with disabilities through the production and retailing of bakery products
and the operation of a café.1 The SEs originated from a bakery workshop that trained people
with disabilities. In running the SEs, more business elements have been introduced to try to
fulfil both social and economic goals. iBakery is unique among SEs operated by Hong Kong’s
non-governmental organisations (“NGOs”) in that it has a group of business professionals,
called “iBakery Angels”, forming an advisory board. With TWGHs as their strong backup,
the iBakery SEs are striving to meet the double bottom line. The SEs’ performance in meeting
the economic goal is far from satisfactory, as they are presently loss-making operations;
however, they are achieving good performance in meeting the social mission when measured
in terms of the Social Impact Assessment Tool. This case sheds light on the operations of SEs,
how they attempt to strike a balance on both economic and social goals, and how performance
measurement of social enterprises may be conducted. It also allows students to examine what
the SEs should do to achieve sustainability in the future.
1
Tung Wah Group of Hospitals is a renowned charitable organisation in Hong Kong. Hong Kong is the Hong Kong Special
Administrative Region, a city in the southern part of the People’s Republic of China. According to its official website, TWGHs
is the largest charitable organisation in Hong Kong. For over a hundred years, TWGHs’ medical and health, education, and
community services have developed rapidly to fulfil the needs of the society and to provide high-quality services at low rates.
At present, TWGHs operates over 230 service centres with a staff strength of over 10,000 members, and a total recurrent
expenditure close to HK$5.2 billion. Tung Wah Group of Hospitals (n.d.) “About Us”,
http://www.tungwah.org.hk/?content=314 (accessed 23 April 2012).
1
, 12/522TN iBakery: How a Hong Kong NGO Ventures into Social Enterprise
Conceptual Foundation and Teaching Objectives
This case deals with how an NGO ventures into running SEs. iBakery is an example of an
NGO-supported SE, one type of SE in Hong Kong. Its achievement with regard to social
impact is evaluated using the Social Impact Assessment Tool. The case provides an
opportunity for students to understand not only the concept of SEs but also the operations of
their key elements and components. In addition, it facilitates discussions on how SEs’
performance can be measured. Students may also analyse possible ways for SEs to compete
on the market and achieve self-sustainability.
The teaching objectives of the case are:
1. To provide students with a basic understanding of the concept of SEs.
2. To understand performance measurement of SEs.
3. To evaluate the strengths and weaknesses of SEs in the areas of corporate governance,
human resources management, and partnership with internal and external parties.
4. To examine possible ways for SEs to compete on the market and achieve self-
sustainability.
Suggested Student Assignments
1. What are the key features and characteristics of SEs? What are their implications?
2. Discuss the different approaches used to categorise SEs. What is the relevance of each
approach to iBakery?
3. Use iBakery as an example to discuss the components and elements of SEs.
4. Describe and evaluate SEs’ methods of performance measurement and performance
reporting.
5. Consider and discuss the factors affecting the success of an SE. What are the critical
success factors for iBakery to achieve self-sustainability?
Analysis
1. What are the key features and characteristics of SEs? What are their
implications?
In reviewing the literature on the definition of an SE, the only consistent point is the common
acknowledgement of a lack of an agreed-upon definition. 2 Though “it is unlikely that a
definitive set of characteristics applies to all kinds of social entrepreneurial activity across all
contexts”, it is nonetheless a less confusing and easier angle to begin understanding the
concept by examining the features and characteristics of SEs. 3 And even from this angle,
2
Dacin, P., Dacin, M. T. and Matear, M. (2010) “Social Entrepreneurship: Why We Don’t Need a New Theory and How We
Move Forward From Here”, Academy of Management Perspectives, 24 (3), pp. 37–57. In this article, Dacin et al. report that a
“lack of agreement on the domain, boundaries, forms, and meanings of social entrepreneurship (Peredo & McLean, 2006;
Perrini, 2006) results in a field of study characterized by no unified definition (Short et al., 2009), imprecision, and largely
idiosyncratic approaches” (p. 38).
3
Ibid., p. 42. Students who desire to have a more comprehensive view on the subject matter are recommended to read the
following: (1) for a summary of SE definitions and their implications: Dacin, P., Dacin, M. T. and Matear, M. (2010) “Social
Entrepreneurship: Why We Don’t Need a New Theory and How We Move Forward From Here”, Academy of Management
Perspectives, 24 (3), pp. 37–57; and (2) for a textbook written on the subject matter: Ridley-Duff, R. and Bull, M. (2011)
Understanding Social Enterprise: Theory and Practice, Sage Publications: Thousand Oaks, CA.
2
