The Development Features of Work Integration Social Enterprises in Taiwan since the mid-2000s

In terms of typology of social enterprise, work integration social enterprises (WISEs) providing social services and products are the most visible forms of social enterprise in Taiwan. This type of social enterprise is deeply... [ view full abstract ]

In terms of typology of social enterprise, work integration social enterprises (WISEs) providing social services and products are the most visible forms of social enterprise in Taiwan. This type of social enterprise is deeply concerned with socially disadvantaged minorities (in particular, the disabled); it aims to integrate them into the labor market by providing them with proper training and employment assistance. Taiwan’s WISEs serve individuals with all types of disabilities, but the most important target groups have been the mentally disabled, individuals with multiple disabilities, people with autism, and the physically handicapped. Some of these Taiwanese WISEs have achieved notable results in terms of vocational training, counseling and job placement for their beneficiaries; they have also contributed to change the public’s perception towards people with disabilities.

Although their operating techniques are commercially oriented, Taiwanese WISEs still rely heavily on the government’s direct or indirect support. Their funding mix for running the social enterprises combines government subsidies, operating profits and general donations. In recent years, they have been found to be highly active in exploring all sorts of possible channels of distribution, in particular the web-based channel. Apparently, the Taiwanese WISEs are increasingly adopting mixed financial resource strategies. Are these strategies able to be sustainable over time for the WISE in Taiwan?

As for the governance adjustments, our study shows that the governance structure of work integration social enterprises in Taiwan is becoming gradually more diversified than before; specialization within the organization tends to increase in response to the development of social enterprises. Moreover, the CEOs of WISE have a strong impact on decision-making concerning WISE operation and management. In addition, when review the governance structure of traditional NPOs in Taiwan, most of the board members still remained specialists in social welfare, representative of parents of the disabled ones or social leaders; very few business specialists entered the Board of Directors. However, we found gradually the pattern has been changed. Due to the operational needs of the WISE in Taiwan, more and more organizations attempted to attract professionals to join the Board of Directors. However, the actual management still remained to be rather traditional.

Since 2014, the Ministry of Economy of Taiwan started to promote the “Action Plans for Social Enterprises” which encompassed tasks ranged from adjusting relevant regulations, constructing information and communication platform, generating more funding for social enterprises and providing consulting services in wish to create an environment suitable for the innovation, entrepreneurship, growth and development of social enterprises. Despite WISE in Taiwan have benefited government funding and other non-monetary assistance, they were still limited by the administrative institutions at some points; the complicated administrative process have created burdens for the organizations, and the limitations of legal regulations and the unhealthy institutional environment could possibly block the development of WISE. The acquisition of related resources for WISE to rely excessively upon government grants can be described as the 'institutional isomorphism' phenomena. The occurrence of 'institutional isomorphism' may also inhibit WISE to the possible way of diversified development.

In terms of the paper’s structure, we will first provide a detailed illustration of Taiwanese work integration social enterprise’s defining features since the mid-2000s. The empirical data utilized for analysis will include the results obtained from the three surveys conducted by the authors on the social enterprises in Taiwan and Hong Kong (2006, 2010 & 2013). Then, we will succinctly portrays two quite distinguished Taiwanese WISE, the Children Are Us Foundation and the Hsin Kang Foundation of Culture and Education; by so doing, it illustrates the strong linkage of the two WISEs' development with the public policy environment and the political economic context in Taiwan. Finally, a discussion and conclusion in accordance with the above analysis will be offered.

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