Straits Times 4 Dec 07;
Social enterprises can be for-profit companies with a social mission or welfare agencies with separate business arms designed to generate money in support of their programmes. Arlina Arshad looks at two such ventures
Gaming cafe offers after-school care
THREE years ago, Mr Anderson Tan, 34, opened a cafe where children could hang out and study at after school.
The venture prospered until two gaming centres sprouted up nearby and drove it out of business.
Mr Tan, principal education planner for EduPaths, which provides leadership and life skills to primary school to junior college students, resisted joining the shootem'up bandwagon.
Gaming centres, in general, have bad reputations and may have a negative influence on children, he felt.
But his stance changed one day when a father asked for help installing a video game in a bid to better understand his child.
'After the talk, there was a shift in mindset. If I wanted to reach out to youths at risk, then I must be able to speak their lingo,' said Mr Tan.
So, he introduced the gaming component at the Fun and Educational Cafe in Tampines in March last year. The venture's two void deck shop units have sealed-off classrooms for training, alongside gaming computers.
The concept of marrying an education centre, a cafe and gaming centre was so popular that three more branches have been opened in Potong Pasir, Bedok and Redhill since then.
The for-profit centres get 200 to 300 customers daily, from children to young adults.
Mr Tan said: 'I must know what they like. I can provide games too but in a measured environment.'
He does not get any government funding. Revenue comes from course fees and computer use, which is $2 an hour.
He said he wanted a safe place for youths to hang out at after school, without them milling around the mall.
He said: 'It's not like gaming centres people expect. Here, I can befriend the kids, and counsel those who need advice.'
Consultancy services bring in $130,000
IT WAS getting tougher and tougher to raise money the charity needed from grants and donations.
So, a group of volunteers from the non-profit Retired and Senior Volunteer Programme - or RSVP - hit on the idea of offering their skills.
As former company chief executives, business development directors and strategic planners, they had a wealth of experience to offer.
Said Mr Nat Natarajan, RSVP board member and ProGuide chairman: 'These are people with years of professional expertise, and they could use that knowledge to help others.'
So ProGuide was formed in 2004 as the social enterprise arm of RSVP.
The profit goes back to RSVP to run its own research projects, IT courses and programmes for seniors, mentoring schemes for latchkey children, and rehabilitation and job placements for former mentally-disadvantaged patients.
Currently, it has about 50 RSVP volunteers who regularly offer consultancy services, which include IT, marketing and business advice, to other voluntary welfare organisations which need some help.
According to Mr Natarajan, they charge about what a competing small- or medium-sized company would charge.
For instance, in the last three years, about a dozen welfare organisations had engaged them in projects - each of which cost $15,000 to $35,000.
As a bonus, ProGuide offers a free review of the client's current working system, and even helps list recommendations on how the welfare organisation can be more efficient.
All, but one VWO, engaged ProGuide on a paying basis - evidence that their services were up to par and valuable, said Mr Natarajan with a smile. The one VWO just used their free review.
He reckons that ProGuide makes an average of about $130,000 in gross income a year. At least half of it would go to supporting its programmes.
Mr Natarajan said despite being a social enterprise, the business is run professionally - volunteers will stick to schedules and will come in on time.
And this, he hoped, would help RSVP wean itself off government grants and become self-funding in a few years.
The biggest challenge? Getting the ex-directors and CEOs to work together as team players.
'Once we sort out the egos, the wealth of experience is very valuable. Plus, we have found that they are all professional. Once a boss is appointed, they will all listen to him or her.'
