The Social Enterprise (SE) Directory, managed by The Hong Kong Council of Social Service (HKCSS), has released its 2025/26 SE survey results. As of 5 May 2026, a total of 551 SE units are listed in the SE Directory. The survey indicates that despite facing systemic challenges such as a macroeconomic downturn and high operating costs, SEs have actively driven business innovation and cross-sector collaborations to navigate market stagnation, while steadily fulfilling their social missions.
The findings reveals that only 20.7% of the surveyed SE units achieved profitability last year, with the remaining 80% either breaking even (39.1%) or recording losses (40.2%). The proportion of profitable SEs saw a significant 10% decline compared to the previous year. Nearly 40% (38.1%) of SE units identified "high operating costs" as their primary operational bottleneck. This is closely linked to their structural models, with 94.1% of units operating offline businesses, leaving them burdened by substantial fixed costs such as commercial rent and payroll.
Nevertheless, among those SEs currently operating at a loss, 85.4% intend to maintain (67.2%) or increase (18.2%) their business investments in the coming year. To navigate these headwinds, SE units are adopting pro-growth strategies, leaning towards "expanding/strengthening core businesses" (29.4%) and "developing new product lines or service networks" (16.1%).
In the face of digital transformation and the popularization of Artificial Intelligence (AI), only 11.2% of SEs utilized AI or technology to enhance operational efficiency over the past year. This suggests that the sector’s practical and strategic insights into technological applications is still in its early stages. On a 5-point scale, SEs gave themselves a modest average score of 2.7 regarding their readiness for AI. When asked about resource allocation under a hypothetical HK$1 million development funding scenario, SEs earmarked an average 16.6% for technological applications. This investment trails behind capital expenditure on upgrading equipment, facilities and infrastructure (27.2%) and traditional core business functions like product R&D (21.5%). This capital allocation pattern demonstrates that, under the current circumstances where the mastery of technology-business integration has yet to be elevated, SEs lean towards a more conservative asset allocation strategy, prioritising capital injection into business upgrades that yield immediate operational returns.
Despite severe commercial pressure, SEs remain deeply committed to their social missions, rating their performance in achieving social objectives at a high average score of 7.4 out of 10. This reflects their dedication to balancing commercial viability without compromising social impact. To counter market adversity, over 40% (43.7%) of SEs engaged in inter-SE collaborations over the past year, including product procurement & supply chain partnerships (10%) and joint initiatives such as bazaars and workshops (8.2%). This collaborative model directly embodies Goal 17 of the United Nations Sustainable Development Goals (UNSDGs): Partnerships for the Goals. By pooling sector-wide resources, SEs are collectively building a highly resilient and interconnected social enterprise ecosystem.
Publication Date: 2026-06-29
