OBJECTIVE
The Social Innovation and Entrepreneurship Development Fund (SIE Fund), as a catalyst for social innovation in Hong Kong, connects our community with different sectors, including businesses, NGOs, academics and philanthropies to create social impact through innovative solutions that address poverty and social exclusion. Partly through the intermediaries, the Fund provides visionary individuals and organisations with diverse resources in support of research, capacity building and the entire life cycle of innovative ventures, from idea incubation and seed funding to implementation and eventual scale-up. The ultimate goal is to foster an ecosystem where social entrepreneurs can thrive and innovative ideas, products and services can benefit society by meeting underserved needs, unleashing underutilised talents, promoting social inclusion, as well as enhancing the well-being and cohesion of the society. Moreover, the SIE Fund will strengthen its collaboration with the government in taking forward the strategy of “Targeted Poverty Alleviation”*, so as to tackle pressing poverty issues and meet the needs of vulnerable groups.
*Reference:
- Website of SIE Fund - Harnessing Social Innovation for “Targeted Poverty Alleviation”
- LC Paper No. CB(2)349/2023(01) – Legislative Council Subcommittee on Reforming the Poverty Alleviation Policies and Strategies – Strategy of Targeted Poverty Alleviation
TARGET
As one of the Intermediaries of the SIE Fund, the Hong Kong Council of Social Service (HKCSS) operates the Impact Incubator, a one-stop supporting platform connecting SIIs with various parties in regards of knowledge, resources and network to implement innovative ideas with social purpose. We provide all-round support to social entrepreneurs through the “7Ps Incubation Package”. We support and incubate:
- Social entrepreneur who aims to adopt sustainable business solutions to address poverty and social exclusion issues
- Social
intra-preneur from NGO or private sector, who aims to mobilise internal resources for social good - Social innovator who adopts creative approaches to addressing social needs
AMOUNT OF GRANT
Projects at different stages will require different amounts of grant funding over variable funding periods.
A) SIE Fund Grant for start-up, growing & scale-up projects:
| SIE Fund Grant Amount | Matching Fund Ratio (SIE Fund : Matching fund ^) | Project Duration |
|---|---|---|
| HKD300,001 – HKD900,000 | 2:1 (1/2 of SIE Fund grant amount) | 1-3 years Except for applications received in 2025 which will be limited to 2 years. |
| Over HKD900,000 with no funding cap | 1:1 (same as the SIE Fund grant amount) |
^ Matching funds exclude SIE Fund and all other HKSAR Government funding. It includes cash or in-kind sponsorship from local and overseas private donors, foundations and/or private investors. In-kind sponsorship generally refers to sponsorship of rental, equipment, talent and certain types of intellectual property. Hence, the applicant should submit relevant documents to support any valuation of the in-kind matching fund. The matching fund amount will be subject to relevant terms and conditions and will be confirmed after approval.
If the SIE Fund funding application is for HKD2,000,000 or above, the Joint Vetting Committee and Proposal Assessment Committee will further review the application
B) SIE Fund Grant for late prototype projects:
For first and second cohort application (April - May; June - August 2023) ONLY
| SIE Fund Grant Amount | Project Duration |
|---|---|
| Up to HKD300,000# | 12-18 months |
Note: Matching fund is not required.
#If your budget exceeds HKD200,000, an in-person interview will be conducted.
The approved total grant is the sum of the capital grant and the operating grant, where:
- the capital grant is the amount approved for acquiring assets (i.e. capital expenditure)
- the operating grant is the amount approved for financing the funded project's operating deficit
BUDGET
Only expenditure incurred exclusively for the funded project can be covered in the budget, for example ‒
1) CAPITAL EXPENDITURE
- Cost of procuring equipment
- Renovation cost
2) OPERATING DEFICIT (OPERATING EXPENSES IN EXCESS OF REVENUE)
- Salary (including the employer’s contribution to the Mandatory Provident Fund)
- Expenses for consumables
- External consultancy fees
- Production and promotion cost of project deliverables
- External audit fee (this is compulsory for organisations' and companies' funding applications)
- Patent registration fee
- Rental and utilities
- Travelling fee
- Insurance
- Central administrative overheads*
* Charges levied by a party (e.g. parent company) for
PAYMENT OF GRANT
The applicant will be required to keep a Designated Bank Account solely for the purpose of implementing the approved proposal. The grant shall be remitted into the Designated Bank Account in installments at such intervals as specified in the contract.
In general, the initial installment will be released upon commencement of the project and the matching fund is deposited into the designated bank account. Afterwards, installments shall be released at intervals e.g. the submission of the progress and financial reports every six months and upon the SIE Fund's satisfaction of performance of the project. Not less than 10% of the grant will be reserved as retention money which shall be released after the completion of the project.
| [1] | |
| [2] | Paid upon completion of project milestone every six months and upon the SIE Fund's satisfaction of performance |
| [3] | Not less than 10% of the approved grant will be reserved as retention money, to be released after the end of the funding period and upon completion of all project milestones. |
| [4] | Each installment might be adjusted based on the project's latest spending position. The unspent grant, if any, may need to be returned. |