9 ACKNOWLEDGEMENT Doing a thesis requires investment of time, rebounding from failure, selfmotivation, and of course to somehow financial resources However, it is not a solo act There are many who have sacrificed much and have been an ongoing source of inspiration and support First and foremost, I would take this opportunity to express my profound gratitude and deep regards to my guide Dr Nguyen Hai Ninh for his exemplary guidance, monitoring and constant encouragement throughout the course of this thesis To me, he is not only the advisor for this thesis but also a mentor who has opened my mind set in many aspects of life through warm sharing and brain storming moments I must also thank all the participants of my group, without their enthusiastic and constructive contribution, my thesis could not be accomplished Last but not least, to my dearest family and friends, especially my mom, for their incredible support throughout the difficult time I have been most fortunate in having the support from all of you and it has allowed me to reach my destination and happy to have made the journey Table of Contents LIST OF FIGURE Figure 1.1 Figure 1.2 Figure 1.3 Typical hybrid of social enterprise The difference between traditional enterprise and social enterprise The ILM concept is about keeping the labor market “ active” LIST OF ABBREVIATIONS SEs CSIP SEA OECD CIEM ILMCs NGO Social Enterprises Center for Social Initiatives Promotion Social Enterprise Alliance Organization for Economic Co-operation and Development Central Institute for Economic Management Intermediate Labor Market Companies Non-governmental organization INTRODUCTION The social enterprise phenomenon can trace its roots back to the eighteenth century and the concept as such has evolved to become is a global phenomenon Social Enterprises (SEs) have been formed from social initiatives, based on a demand of solving a concrete social problem of the community and led by entrepreneurial spirit of the founders It is concerned with bringing about the social impacts and social changes through innovative thinking The deep objective of social enterprise is to bring a more sustainable economy Unlike the usual traditional enterprise, it does not focus on profit maximization but to use surplus as a means to solve social issues Furthermore, it advances nonprofit in the ability to financially self-sustain In the context of Vietnam, since Doi Moi, the most popular organization form associated with social mission is Non- government organization (NGO) funded from foreign NGOs and donation These organizations have been significantly contributing to the social and economic development of our nation However, recently, when the state of the world economy as well as our economy struggle in difficulties due to the crisis, as well as restructuring trends, fiscal tightening, reduce public debt and the environment increasingly polluted by excessive economic activity, a new business model, has been conceived and developed as a new trend in our country, namely: Social Enterprise Inevitably, social enterprise model which can bring profound social benefits and sustain themselves by creative business models is a possible choice as a long term solutions for our social welfare career Because of the necessity of Social Enterprise in building a sustainable economy, I would like to suggest the topic of my thesis “The concept of social enterprise: Reality and solutions for the case of Vietnam” Thesis objectives: The purpose of the thesis is to clarify the fundamental characteristics of social enterprise The study will guide through the historical context and concept of social enterprise phenomenon in Vietnam In my thesis, there will be recommendations in order to improve the development of social enterprises in Vietnam Research Questions What is the concept of social enterprise? − What is the biggest issue in the development of social enterprises in Vietnam − What are recommendations for it? − Thesis methodology: In this study, both deductive and inductive research approach are used, together with qualitative method, collection of data and comparison with empirical research methods Thesis Structure: Chapter 1: Literature review about the concept of Social Enterprise Chapter 2: The research about the reality of Vietnamese social enterprises Chapter 3: Recommendation for the case of Vietnam CHAPTER 1: LITERATURE REVIEW 1.1 The evolution and development of Social Enterprises (SE) Social Entrepreneurs and social enterprises have been in existence for many centuries however, it was first appeared in the United Kingdom in the 17 th century and have been the country where Social Enterprises most developed According to MacDonald & Howarth’s research (2008), the first social enterprise model appeared as a result of the plague (Black Death) epidemic in 1665 1The epidemic has left a disastrous consequence that many poor people became unemployed In this situation, Thomas Firmin established a manufactory using his own money to supply materials for the operation and provided employments for 1700 people At the time of establishment, Firmin clearly stated that he will not pursuit optimization of profit but to transfer the profit to charitable funds Since then, models of cooperatives, social housing, micro finance, etc have been established and replicated in North America and East Europe as a result of the Great Depression (1929-1933), social enterprise’s activities experienced some decreases when the Keynes’s economic model become popular But Social Enterprises have not been internationally recognized and developed as a trend to sustainably solve social problems until 1980, when Governments innovatively shared and transferred part of social welfare delivery responsibility to the third sector which is later being known as Social Enterprises in many countries In United States, the social enterprise became more prominent during the late 1970s and 1980s in response to the economic downturn and major cutbacks in government spending Many charities at this time felt the need to increase their revenue from sources other than grants and donations Several of these charities began to rely increasingly on commercial activities for revenue, greatly expanding this type of American social enterprise As a result, the portion of income these charities received from commercial activity increased by 20% between 1982 and 2002.2 In Europe, social enterprise appeared popularly for the same reason as the United States however, in the case of Europe, 40% 3of the European’s unemployed were considered “long-term unemployed” The downturn significantly cut CSIP, British Council & CIEM 2012 These figures are based on a 2002 study of nonprofits with annual revenue of over $25,000 Commercial activity, defined as income from special events, sales of goods, and dues and payments where members received comparable benefits, grew as percentage of income for these groups from 48.1% in 1982 to 57.6% in 2002 Kerlin, supra note 11, at page 252 Tackling social exclusion in Europe: The contribution of the social economy (Roger Spear et al eds., 2001) government budgets across the continent, reducing states’ ability to provide unemployment assistance and job re-integration, further compounding the unemployment problem To solve these problems, several charities chose to focus their efforts on battling structural unemployment Many charities started job-training and work-integration programs— programs which often had commercial activities From then, the understanding of social enterprise in Europe was shaped and in turn guided the development of social-enterprise policy across the continent 1.2 Different viewpoints on social enterprises concept Social entrepreneurship has gained increasing popularity and attracted attention during the recent years The basic idea of social entrepreneurship is the combination of a social mission with a business-like operation of the organization However, the specific meaning of social enterprise has not been officially defined yet Depending the point of view, vision, mission, and goal, the term ‘social enterprise’ is increasingly recognized with some organizations describing themselves in this way According to Department of Trade and Industry (DTI) in 2002, the definition currently is expressed: “A social enterprise is a business with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, rather than being driven by the need to maximize profit for shareholders and owners” This definition is very comprehensive, stick to the basic characteristics of social enterprise First, doing business, should be understood as a model, a pro-active approach and solutions that the organization has adopted in its operation rather than bind it tightly to the form of a company such as : a joint stock company or a limited Department of Trade and Industry, A Strategy for Success: Social Enterprise Explained, p13 liability company….However, it also performs the economic function as a commercial trade company Secondly, the social objectives are set out as a primary mission of SEs It is the most important goal in shaping the SEs Social goals can be a hunger eradication, poverty alleviation, environmental protection, protection of human rights… Social enterprise must be established to pursuit social goals Thirdly, profits are not for individuals but redistributed back to the organization, society or community However, according to Social Enterprise Alliance (SEA) 5, the champion for social enterprise in the United States “Social enterprises are businesses whose primary purpose is the common good They use the methods and disciplines of business and the power of the marketplace to advance their social, environmental and human justice agendas.” Three characteristics distinguish a social enterprise from other types of businesses, nonprofits and government agencies:  It directly addresses an intractable social need and serves the common good, either through its products and services or through the number of disadvantaged people it employs  Its commercial activity is a strong revenue driver, whether a significant earned income stream within a nonprofit’s mixed revenue portfolio, or a for profit enterprise  The common good is its primary purpose, literally “baked into” the organization’s DNA, and trumping all others 5Se-alliance.org (2014), What is Social Enterprise, Available at: https://www.se-alliance.org/what-is-socialenterprise [Accessed 14 Jul 2014] The Organization for Economic Cooperation and Development (OECD) definition of social enterprise is: “Social enterprises are organizations that take different legal forms across OECD countries to pursue both social and economic goals with an entrepreneurial spirit Social enterprises typically engage in delivery of social services and work integration services for disadvantaged groups and communities, whether in urban or rural area In addition, social enterprises are also emerging in the provision of community services, including in the educational, cultural and environmental fields” Social Enterprise London: summarize the term “social enterprise” in characteristics: enterprise orientation; social goals; social ownership  Enterprise orientation: They are directly involved in producing goods or providing services to a market They seek to be viable trading organizations, with an operating surplus  Social Aims: They have explicit social aims such as job creation, training or the provision of local services They have ethical values including a commitment to local capacity building, and they are accountable to their members and the wider community for their social environmental and economic impact  Social ownership: They are autonomous organizations with governance and ownership structures based on participation by stakeholder groups (users or clients, local community groups etc.) or by trustees Profits are distributed as profit sharing to stakeholders or used for the benefit of the community In Australia, the Australian Department of Education, Employment and Workplace Relations define social enterprises: “A social enterprise is an organization or venture that achieves its primary social or environmental mission using business methods The social needs addressed by social enterprises and the business models www.oecd.org/gov/budgeting/47814764.pdf 10 enterprises always tight closely to social initiatives, because their business solutions must be 'social innovation’ so it can bring about social objectives using business approach Therefore, with social goals and wise strategy, SE can gain profitability as well as sustainability for development Figure 1.1: Typical hybrid of social enterprise Business Activity Social objectives Social enterprise Source: CIEM 1.3.2 Have a clear social mission The social enterprise community agrees that the primary aim of all social enterprises must be a social or environmental one In another word, the social objectives must be put as the core mission Because the priority objective of SEs is aim at the society, the business strategy is different from traditional business The difference is that traditional enterprises meeting customer needs or finding social solutions to maximize profit for enterprise owners In contrast, social enterprises use business model as a tool to achieve their social objectives In summary, social objectives are considered to be the most basic, the first and foremost and the guideline for business activities of SEs Figure 1.2: The difference between traditional enterprise and social enterprise 12 Traditional enterprise Social enterprise identify market design products identify social design business issues plan gain profit solve social issues Source: CSIP, British Council & CIEM 2012 1.3.3 Reinvest the majority of their profits What a social enterprise does with its profits is a critical way in which social enterprise is distinct from standard businesses The basic principle of SEs is use the profit or surplus to redistribute back to the activities of the organization or the community, not to distribute profit to individuals The way of distribution of profits of each business is different, depending on the set-out social objectives There are some popular social entrepreneurs to reinvest their profits for social purposes:  Recruit workers who often not attract other employers: disabled,  Operate in places which are less attractive other investors:  Investing in area which has low profit 1.3.4 Social ownership Social enterprises are autonomous organizations that are independent of the state Social enterprises are voluntarily created by a group of people who share certain needs and aims Therefore, they execute a democratic decision making process The decision-making does not rely on the percentage of capital control People and labor have primacy over capital in the distribution of 1.3.5 Undertake different legal forms A social enterprise can exist in various forms of business as follow:  An independent company with social objectives: It may be a private company or a joint stock company… 13  A charitable organization, which is responsible for providing goods and services However, this organization does not depend entirely on funding or charitable contribution  A commercial branch of a charity  A mutual fund which is owned by the members or customers 1.4 Types of Social Enterprise According to Social Enterprise London, SEs can be divided into types as below: 1.4.1 Co-operatives: “are associations of persons united to meet common economic and social needs through jointly owned enterprises” They voluntarily cooperate for their mutual social, economic, and cultural benefit by contributing their money and effort and establish “Co– operatives” (Co-op) In that Co-operative, they provide goods and services to members and under certain conditions, to the community at large over market activities Surplus is partially distributed to members, it can also serve as a reserve fund to improve the offered services or the further develop the organization A cooperative is a type of enterprise, which has legal entity owned and democratically controlled by its members, autonomy, and is responsible for the financial obligations within the scope of the chartered capital, capital accumulation 1.4.2 and other sources of cooperatives prescribed by law Employee-owned businesses: is “ a form of co-operative, create or preserve jobs that help to keep businesses running and protect profits from being lost to remote shareholders” Simply understand, it is owned and controlled by people who work for it This type of social enterprise can potentially develop and flourish in the knowledge economy, where employee participation is the key to tapping into workers’ know- how and to building loyalty Employee-owned businesses can benefit from the following characteristics:  Organizational efficiency –employee ownership increases productivity particularly when combined with participation Studies of employee ownership show that these firms are more productive, more profitable and grow faster than other firms  Personal development –studies show that workers in employee-owned firms have higher job satisfaction; ownership enhances personal dignity, contributes to 14 motivation and identification, and supports personal growth Employees also receive a financial reward through profit sharing  Social value –employee ownership has been an effective tool both for job creation and for job retention through the buyout and rescue of firms As such, employee 1.4.3 ownership contributes to a community’s economic development Social Firms: are “small businesses created to provide integrated employment and training to people with disabilities and disadvantages in the labor market” A Social Firm' is an enterprise that must has these following conditions  At least 50% of the firm’s turnover is earned through sales of goods and/or services  Their specific social purpose is to create sustainable paid employment for either disabled or severely disadvantaged with a suitable job and vacancy  More than 25% of employees are disabled people (Please note that used here ‘disabled’ includes those who are disadvantaged by mental health problems)  These are businesses that use their market-orientated production of goods or services to achieve their social mission, with profits going back into the company to further its goals  A significant number of the employees of social firms will be people with a disability or disadvantage, including psychiatric disabilities  All disabled and disadvantaged employees are paid a market-rate wage or salary that is appropriate to the work  All employees should have the same employment opportunities, rights and obligations Development Trusts: are key actors in community-based regeneration Development trusts are community organizations which:7  Are owned and managed by local community, in another word it is a community 1.4.4 based  Operate with the aim to achieve sustainable regeneration of community from economic, social, environmental and cultural issues to training, property development and management  Are independent but seek to work in partnership with other private, public and third sector organizations Dtascot.org.uk (2014), What is a Development Trust? | DTAS | Development Trusts Association Scotland [online] Available at: http://www.dtascot.org.uk/content/what-is-a-development-trust [Accessed 18 Jul 2014] 15  Are self-sufficient or aiming for self-sufficiency, and not for private profit  All profit is generated through enterprise and the ownership of asset, and 1.4.5 surplus are principally reinvested in the organization or the community Intermediate Labor Market Companies: provide training and work experience for the long-term unemployed ILMC targets to the group of most disadvantaged jobless people, offers employment for participants with fixed term jobs (up to 12 months), with close supervision, guidance and support, and enabling participants to earn a wage rather than government income support ILMCs provide participants with fixed term jobs (typically 12 months) ILMCs provide place-based responses in regard to recruitment of employees and operation of business activities, with strong involvement by local government and non-government organizations Figure 1.3: The ILM concept is about keeping the labor market “active” Source: Bob Marshall and Richard Macfarlane, The Intermediate Labor Market: A tool for tackling long-term unemployment 1.4.6 Social and Ethical businesses: are organizations, which use trade to raise money for specific commitments and are set up by charities or non-governmental organizations, or simply ethically minded individuals In the past, social and ethical businesses have tended to be set up and owned by a charity or NGO as a way of raising money to supplement grants and donations However, in recent years a growing number of them have been set up by individuals or groups of social entrepreneurs whose personal ethics have led them to use their business expertise to something positive for their community or society in general 16 1.4.7 Community businesses: can be under any of the above but with a particularly strong geographical definition and focus on local markets or services A community business must have the following basic features:8  Operate with a specific aim in a certain geographical area  Are owned, managed and controlled by local community to develop this area  Aim to provide goods or services to benefit local communities in accordance with the objectives 1.5 The benefits of social enterprises Social enterprises tend to operate with a purpose of creating value for the society and also generate income (if not wealth).We cannot deny the positive impact of SEs on the society, not only in the social aspect but also the economy, and public service as well 1.5.1 Social impact The unique difference between SE and the traditional business is the social missions that it pursuits The social mission can be varied from the environmental purpose to social problems like human trafficking, illiteracy, poverty…The profits from trading are reinvested for social purpose to improve the people’s life, especially people in the Bottom of Pyramid Group They are the poorest and most disadvantaged people, making up billion with income of less than USD/day Social enterprise has the ability to stay sustainable while providing low products’ price, therefore, is able to tap on their needs Furthermore, social enterprises contribute to the improvement of socially and/or locally restricted markets, i.e they offer mainly goods and services which otherwise would not be available either because of a lack of profitability for private enterprises or because of restricted financial capacities within the public sector 1.5.2 Economic impact Social enterprise is a business model driven by social mission Like others traditional businesses, it also generates incomes through trading goods and services, Distinguishing between types of social enterprises (http://www.mutualadvantage.co.uk/CMS/uploads/Section5.pdf) 17 which is used to fulfill the social purpose The social enterprise can not only create more jobs, which in return boost the economy in the local , but also ensure the delivery of sustainable supply chains and create the “better” society Actually, social enterprises play a key role in restructuring local economies 1.5.3 Public services Social enterprises are seen as a source of innovation in the delivery of public services and as creators of new service opportunities… Since they deliver products at a lower price compared to other companies They still manage the same cost This has pushed social enterprises to innovate, to be more sustainable creative in the operation Social enterprises usually are the pioneers in finding new approaches, designing new services and models (Carbinetoffice 2006) 1.6 Typical and famous examples of 1.6.1 Grameen Bank – Bangladesh SEs A typical model of social enterprise in Bangladesh is Grameen Bank- Bank for the poor The origin of Grameen Bank can be traced back to 1976 when Professor Muhammad Yunus, Head of the Rural Economics Program at the University of Chittagong, launched an action research project in Jobra village to examine the possibility of designing a credit delivery system to provide banking services targeted at the rural poor In 1976, he decided to make a small loan of US$27 to a group of 42 families as start-up money so that they could make items for sale, without the burdens of high interest under predatory lending Yunus believed that making such loans available to a larger population could stimulate businesses and reduce the widespread rural poverty in Bangladesh He continued to develop the principles of the Grameen Bank from his research and experience and began to expand microcredit as a research project together with the Rural Economics Project at Bangladesh's University of Chittagong to test his method for providing credit and banking services to the rural poor In 1976, the village of Jobra and other villages near the University of Chittagong became the first areas eligible for service from Grameen Bank With support from 18 the central Bangladesh Bank, the Bank project was extended in 1979 to the Tangail District The bank's success continued and its services were extended to other districts of Bangladesh In 1983, Grameen Bank was officially established as an independent bank and started expanding operations across the country Mechanism: The mission of the Grameen Bank is to offer the rural poor opportunities to access credit The Grameen Bank Project came into operation with the following social objectives: extend banking facilities to poor men and women; eliminate the exploitation of the poor by money lenders; − create opportunities for self-employment for the vast multitude of unemployed − − − people in rural Bangladesh; bring the disadvantaged, mostly the women from the poorest households, within the fold of an organizational format which they can understand and manage by − themselves; and reverse the age-old vicious circle of "low income, low saving & low investment", into virtuous circle of "low income, injection of credit, investment, more income, more savings, more investment, more income" The bank does this primarily through offering microcredit loans Individuals are eligible for a loan if they are from a household that “owns less than acre of cultivated land” In Grameen system, the bank goes to the poor and provides loan without any collateral It is a trust-based banking, which not require any credit history or business experience for providing loans Its credit delivery and recovery mechanism is very client friendly and flexible Repayment is made in weekly installments It promotes social capital The entire Grameen system is built on peer support with the framework of a five- member group and the broader framework of a center It develops leadership quality among its members through annual election of group and center leaders, electing board members as the institute is owned by the borrowers Grameen has always taken into consideration the potential and capacity Grameen-info.org, (2014), Grameen Bank | Bank for the poor - A Short History of Grameen Bank Available at: http://www.grameen-info.org/index.php?option=com_content&task=view&id=19&Itemid=114 [Accessed 25Jul 2014] 19 of its borrowers, their affordability and viability It has developed loan products and terms according to their needs One can borrow more and more as one grows in confidence, skills, and fulfills Grameen requirements Profit could be got from the interest rate and be rotated for loans The interest rate Grameen Bank charges for its loans is lower than the rate of interest the government of Bangladesh has fixed for government run microcredit programs The interest rate for government program is 11percent flat It is only 10 percent flat for Grameen basic loans In addition to microcredit loans, the Grameen Bank also provides other financial services, expanded its loan services to include such tools as housing loans and family loans Finally, Grameen also organizes a number of community-building workshops, a practice that began in 1980 The bank conducts almost “3,000 workshops each year, some one-day affairs, some lasting a full week, focusing on health care, nutrition, family planning, child care, and business opportunities” (Bornstein 96) 1.6.2 The Big Issue- a hand up and not a hand out The Big Issue is a street newspaper published in four continents, which was founded by John Bird and Gordon Roddick in September 1991.It is written by professional journalists and sold by homeless individuals The Big Issue has been the leader in the ‘street paper’ movement, demonstrating both the sustainability of a pioneering social enterprise model, as well as a long term commitment to addressing the challenge of homelessness worldwide Founded in 1991, the organization is guided by the mission of helping thousands of individuals to regain control of their lives and simultaneously altering public perceptions of the homeless Currently The Big Issue has worked with around 2000 individuals across the UK offering them the opportunity to earn a legitimate income; to ‘help them to help themselves’10  Mechanism: The Big Issue consists of two parts – Big Issue Limited Company (Big Issue Ltd) that produces and distributes The Big Issue magazine to a network of 10 Big Issue, (2014) About Us Available at: http://www.bigissue.com/about-us#1.[Accessed 28July 2014] 20 street vendors, and The Big Issue Foundation - a non-profit foundation, which exists to help those vendors gain control of their lives by addressing the issues that have contributed to their homelessness The Big Issue Foundation offers counseling services and references in the areas housing, health, financial independence and (career) expectations To help the vendors, The Big Issue allowed them to buy the weekly magazines for GBP and sell it at a price of GBP to the customers on the streets Each (certified) new vendor receives short instructions for the sale of the magazine and free copies (in London 10) Copies which are not sold cannot be returned and no money is refunded Any further turnover of the magazine, for example from advertisements, is realized directly by the Big Issue Foundation Nowadays, The Big Issue has also had to manage the expansion made possible by its success It has implemented an international license franchise which has seen the paper launched in Australia, Japan and South Africa, Korea, Malawi, Namibia…With the purpose of the initiative is to empower homeless people and rough sleepers through financial inclusion and self-help, The Big Issue has helped thousands of homeless and be recognized as one of the world’s most successful social business models 1.6.3 KOTO- Know one teach one KOTO is a famous social enterprise in Vietnam, which operates as a restaurant business and vocational training center with a mission to change the lives of disadvantaged children in Vietnam It was established in 1999 Jimmy Pham, a Vietnamese-Australian The concept of KOTO began when Jimmy asked some of these young people what they wanted out of life They simply replied, ‘We need skills so we can find stable jobs’ He then decided that he wanted to come back to Vietnam on a long-term basis and make a difference In 1998, Jimmy Pham set up Street Voices, a not for profit association registered Australia The aim was to support The Project through fund raising, raising the profile and the need to assist Vietnamese street and disadvantaged youth 21 In 2007 Street Voices Incorporated was renamed KOTO International Limited a not for profit company Limited by Guarantee KOTO has developed as a training center, which supports vocational training for street and disadvantaged children  Mechanism: KOTO means “Know one, Teach one”- learning should be passed on; knowledge is there to be shared It is a model of social enterprise with the mission to giving disadvantaged youth the possibility to learn and strive in their lives Trainees have poor communication skills, low self-esteem, little hope for healthy & productive future KOTO provides the trainees with hospitality industry training, self-belief and enthusiasm to take their rightful place in their community and contribute to their world Trainees at KOTO are from the poor families, whose parents addicted to drug, drinking or gambling or other evils, orphans, abused workers or abandoned children…and aged from 16 to 22 years In 24 months, students will learn the skills to serve in hospitality, business English and other life skills In addition, they are also provided with periodical health examination, immunization, uniforms, residential arrangement, health services and training allowance monthly at the training restaurant After graduation, they are highly valued hospitality industry in Vietnam and internationally With trainees after two years training, they will be granted with an official certificate from Box Hill, Australia This is a credible certificate for restaurant and hospitality business and fully recognized all over the world including five stars hotels Functioning as a social enterprise, KOTO seeks to solve social problems directly and sustainably Koto is developing in the direction of replicating its model to other localities in Vietnam and overseas; at the same time, Koto encourage the generation of F2, F3, graduates of Koto training program to replicate Koto model ( typically Pots & Pans restaurant was opened in Hanoi by a former student of Koto) It approaches social issues with fundamental solutions and sustainability therefore it has obtained better and deeper impacts 22 KOTO restaurant is a part of KOTO project, which works as a business aspect to support for vocational training centers Currently, more than half the Center’s operating costs is funded from the profits of the restaurant All profits from the restaurant are put back into the Project So far, the model is based on meeting the basic human needs of a person such as belonging, a nurturing environment, physical wellbeing, order and meaning; as well as opportunities to develop self -esteem, empowered with new skills, and give-back to your community Up to now, KOTO has trained more than 20 courses (2 courses enrolment each year) with the number of graduates up to nearly 350 children In general, social enterprises in the world and in Vietnam in particular have achieved significant impact in society and considerable economic return Based on the analysis of typical examples of social enterprise, we can clearly see that the social enterprises are hybrid organizations, undertaking business activities to achieve social objectives They operate not for profit but for the society, especially, working to meet the needs of Bottom of Pyramid Group In fact, social enterprises are factors that promote innovation and initiatives for the society They go into the niche market which no one has entered or even create new market, or meet the needs of a neglected group, or address the social and environment issues to the economy of the country, to attain the sustainable development Although there will be a lot of difficulties and obstacles to overcomes, we cannot deny the role of social organizations, community development in general and particularly the emergence of a lot of social enterprises 23 REFERENCE A Publication Akrem Abdu & Erik Johansson (2009), Social Entrepreneurship: A Case Study of SIFE Umea University, Bachelor thesis Brouard F and Laviret S, (2011), Social Enterprises: Definitions and Boundaries, ANSER – ARES 2011 Conference CSIP, British Council, CIEM, (2012), Social enterprise in Vietnam: Concept, Context and Policies, Hanoi: British Council Daryl Poon, (2011), The Emergence and Development of Social Enterprise Sectors: What historical global trends mean for the development of Social Enterprise in China, pp 14-15 Defourny, J., & Nyssens, M (2009), Conceptions of Social Enterprise and Social Entrepreneurship in Europe and the United States: Convergences and divergences, EMES International Conference on Social Enterprise, Italy Doeringer, M F (2010), Fostering social enterprise: historical and international analysis, Duke Journal of Comparative and International Law, 20(291), 291-329 In J Kerlin (Ed.), Social enterprise: A global comparison, Lebanon: Tufts University Press International Journal of Social Economics, The experience of the Grameen Bank of Bangladesh in community development, Vol 24 No 12 Jiao, H (2011), A conceptual model for social entrepreneurship directed toward social impact on society, Social Enterprise Journal, vol 7, issue 2, pp 130-149 10 Local Government Group, (2011), Social enterprise, mutual, cooperative and collective ownership models: A practical guide, pp 5-15 11 M Kowalik and D Martinez-Miera, (2010), The Creditworthiness of the Poor: A Model of the Grameen Bank, pp 1-5 12 Make Poverty Business, Social Enterprise Development: Bangladesh Case studies 13 Marshall, B and Macfarlane, R (2000) The intermediate Labour Market:A tool for tackling long-term unemployment, 1st ed 24 14 Marta Maretich and Margaret Bolton, (2010), Social enterprise: From definitions to developments in practice, London: Alliance Publishing Trust 15 Martin Mørk Larsen (2012), Social Entrepreneurship: A single case study of a social entrepreneur in the Danish not-for-profit sector, MA Thesis, Aarhus University 16 Mswaka, Walter (2011), Not just for profit: an empirical study of social enterprises in South Yorkshire, Doctoral thesis, University of Huddersfield 17 Mutual Advantage, (2005), Distinguishing between types of social enterprises, page 13-18 18 Nguyen Thuy Trang (2013), Improving the development of social enterprise in Vietnam, Bachelor’s Thesis, Lahti University of applied sciences 19 OECD, The Social Enterprise Sector: A Conceptual Framework, 2007 20 Paul Hunter, (2009), Social enterprise for public service: how does the third sector deliver?, London: Smith Institute 21 Rahman, Aminur (2001), Women and Microcredit in Rural Bangladesh: Anthropological Study of Grameen Bank Lending, Boulder, Colorado: Westview Press p ISBN 0-8133-3930-8 22 Social Enterprises in London, (2007), A review of London Annual Business Survey (LABS) evidence, Greater London Authority Schille (2013), Institutional Analysis 23 Stefanie of the Field of Social Entrepreneurship in Austria, MA Thesis, Johannes Kepler University, Linz 24 Wendy Pardee (2010), Effects of Social Enterprise Among Nonprofit Behavioral Healthcare Providers on Financial Performance, MA Thesis, Indiana University of Pennsylvania B Electronics References Big Issue, (2014), About Us, Available at: http://www.bigissue.com/about-us#, [Accessed 28July 2014] Cahalane, C (2013, 3) Social enterprises lead the way in market innovation Available at: http://www.theguardian.com/social-enterprise- network/2013/sep/03/social-enterprises-and-markets [Accessed 21July 2014] (2013), About us: CSIP, Available CSIP http://www.doanhnhanxahoi.org/en/about-us [Accessed 18 Jul 2014] 25 at: CSIP (2013), Consultancy Services to Develop Social Enterprises, Available at http://www.doanhnhanxahoi.org/en/content/consutancy-services-develop-socialenterprises [Accessed 20 Jul 2014] Grameen-info.org (2014) Grameen Bank | Bank for the poor - A Short History of Grameen Bank, Available at: http://www.grameen-info.org/index.php? option=com_content&task=view&id=19&Itemid=114 [Accessed 25Jul 2014] Hoang Huong, 2009, KOTO – Ngoi nha danh cho tre co hoan canh đac biet, Available at: http://tuoitre.vn/Giao-duc/344545/KOTO -ngoi-nha-danh-cho-tre-cohoan-canh-dac-biet.html, [Accessed 26Jul 2014] Karim Harji, (2009), Measuring Social Enterprise Impacts and Benefits: Emerging Approaches and Issues, Available at: http://www.slideshare.net/kharji/measuring-social-enterprise-impacts-andbenefitsemerging-approaches-and-issues-1530503[Accessed 28July 2014] Koto.com.au, (2013), Koto Story, Available at: http://www.koto.com.au/aboutkoto/84-koto-story[Accessed 29 Jul 2014] OEDC, The social enterprise sector: A conceptual framework, Available at www.oecd.org/regional/leed/37753595.pdf [Accessed 18 Jul 2014] 10 The Global Journal (2012), The Big Issue, Available http://theglobaljournal.net/article/view/533/ [Accessed 29 Jul 2014] 26 at: ... of social enterprise: Reality and solutions for the case of Vietnam Thesis objectives: The purpose of the thesis is to clarify the fundamental characteristics of social enterprise The study... Literature review about the concept of Social Enterprise Chapter 2: The research about the reality of Vietnamese social enterprises Chapter 3: Recommendation for the case of Vietnam CHAPTER 1: LITERATURE... term solutions for our social welfare career Because of the necessity of Social Enterprise in building a sustainable economy, I would like to suggest the topic of my thesis The concept of social