Like any other businesses, social enterprises in Singapore have to sustain themselves. The self-sustaining social enterprise usually represent a successful social enterprise. However, 1 out of 5 small business usually shut down. We are talk about businesses, that are profit driven. What about social enterprises which has a double or even triple bottom line? Having to juggle both profits and their beneficiaries'welfare, one would assume that social enterprises have it tougher.
A social enterprise that perhaps we can look at in Laksania. They are in the F&B industry, serving up different type of Laksas. Their beneficiaries consist of patients from Institute of Mental Health (IMH) and also from Movement for the Intellectually Disabled, which consist of the mentally challenged. They had outlets at East Coast, Bugis Plus and JEM.
However, Laksania unexpected lost its tender at their central kitchen that was based in IMH. They had to quickly find a new kitchen. Alas, they had to squeeze at the East Coast outlet, and eventually incurred higher cost for the new central kitchen located at Kampong Apat. This was a huge blow to them as they were planning to expand. However, due to all these changes, they had to delay and may even not expand anymore.
The outlet at JEM did not help either, as JEM was closed for about 2 weeks after the many mishaps that happened in JEM. Right now, the founder is pouring all she can into Laksania, hoping to keep it up and running. However, things are not looking good for them and they are hoping to find investors.
Social enterprises in Singapore generally receives help from the government and the many different organisaitons. Generally, businesses that doesn't rely on organisations or even donations tend not be stuck in such situations, such as a sudden lost of the location will cause more than just inconvenience for the employees and the owners.
Perhaps a way social enterprises can help to be more sustainable in Singapore is for them to see themselves more as a business that has to take care of then things on their own, rather than thinking that they may ave someone to rely on
Article: Laksania's uphill struggle against rising costs - Nur Asyiqin Mohamad Salleh
http://news.asiaone.com/news/soshiok/laksanias-uphill-struggle-against-rising-costs
It is indeed tough for SEs. For example, Laksania you've mentioned about is on the verge of closure. It is often difficult to balance a sound business model as such.
ReplyDelete