Describing social enterprises as an “important part of Taiwan’s soft power,” Audrey Tang, Taiwan’s Digital Minister, hailed their ability to meld the pursuit of social interests and business profits – forces usually thought of as being in conflict – to facilitate the search for common shared values and solutions. She made her remarks as the keynote speaker at the 2018 edition of AmCham Taipei’s annual CSR Forum, held at the Grand Hyatt Taipei.
Social enterprises are defined as organizations that apply business solutions to social problems.
“Treat social issues as opportunities, not roadblocks,” advised Tang. “And no matter what you do, seek to build off of the energy of those around you.”
Other speakers at the forum were Sabrina Chen, CEO of Flow Inc., the first Taiwanese social enterprise; Stephanie Chan, CEO of Blueseeds, producer of 100% environmentally friendly household products; and Jianjia “Ajia” Gong, founder and Veterinary Officer of Pure Milk Ltd., a platform that connects dairy farmers and consumers.
Chen introduced Flow’s efforts to assist the disabled after rounds of interviewing people with disabilities showed that unemployment levels in this segment of the population are much higher than government statistics indicate. She noted that the disabled fall into one of three categories:
“They’re either functional enough to get jobs, so dysfunctional they qualify for government support, or they’re in between and neglected.”
This third group became Flow’s target population. “They very much want to work, and they are able to,” said Chen. “But they’re being displaced in [the service] industry, where they are competing with other disadvantaged people – those with low income, the elderly, and young people with little education. We asked ourselves: ‘What kinds of tech won’t become obsolete? How can we create opportunities where the weak don’t displace the weak?’ You need something that is sustainable and scalable.”
After some investigation, she settled on offering services in Building Information Modeling (BIM) as Flow’s first effort to provide employment opportunities for the disabled. “It’s the process of building a digital representation of a physical structure before you start building the actual thing,” Chen explains. She notes that you “need a group of people to do it, it’s a skill that can be learned, and it’s something that will always be necessary.”
Stressing the need for social enterprises to be financially viable, Stephanie Chan discussed Blueseeds’ difficult first three years when it was rapidly burning cash. “Because we want to stick to both 100% natural products and production processes, we can’t rely on standard farming practices that involve pesticides and heavy machinery,” she explained. “So our work is labor intensive, and our product was being eaten up by the birds and insects in the ecosystem.”
Cautioning persistence, she notes that many organic farmers give up within the first three years. In Blueseeds’ case, it only became profitable after three years, and since then the return on investment has been high. The message: perseverance pays off.
The advice from Pure Milk’s Gong was that “growth will come organically if you find the right partners with similar values.” But you “have to take time to understand what potential partners value, since sometimes what people say they value is different from what they really do.” For Pure Milk the key values are taking proper care of the dairy cows, practicing eco-friendly farming, and producing milk of the highest quality.
Gong said the idea for starting Pure Milk came after he noticed the large disparity in how well dairy farms were managed in Taiwan, yet “milk from farms that pay attention to animal welfare and environmental protection was worth the same as milk from farms that don’t.” The enterprise is partnering with four farms that share its high standards, helping them market their product to ensure they receive the return they deserve.
“As it turns out,” says Gong, pampered animals produce better milk.”
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