On 11 September 2001, Edwin Lee, a young investment banker from Hong Kong, survived the World Trade Centre attacks in New York City. His office in lower Manhattan, however, and his prestigious job with Credit Suisse were lost as a result of the tragedy. Jobless, Lee decided to take a chance and use his personal savings to start HKBI, Hong Kong's first business brokerage. In the six years that followed, the business went through different stages ultimately establishing itself as Hong Kong's prime business brokerage for small enterprises with a 61% market share and revenues exceeding HK$68m. For 2008, Lee expected revenues to exceed HK$84m. To reach this target he had launched a number of new initiatives including a deal with a local bank to provide prospective buyers with financing. Would Lee be able to grow HKBI at the desired rate?
Georgie Yam arrived in Shanghai in the heat of summer in 2001. He was there on a mission: to develop the market and establish a distribution network for a German hair-care products manufacturer. Soon after he arrived in Shanghai, he discovered that this city, which had been described by an international guidebook as "a playground for foreign adventurers and socialites", fell short of hopes in meeting the demand for a modern indulgence: spa and massage services. Pondering a market that seemed chaotic but thriving, Yam wondered what would be his best bet to capture the opportunity.
New Life Psychiatric Rehabilitation Association has been pursuing its social enterprise initiative since 1994 to create employment and training opportunities for former mental patients in Hong Kong. As of mid-2008, 18 social enterprises have been launched, including a supply chain of organic foods with a farm, two restaurants and five retail shops. Despite success in its social mission, the social enterprises are only partially self-sustaining. The management also faces the challenges of increasing business complexities, keen market competition and more stringent government regulations on food safety. The ability of New Life to tackle these issues is constrained by the fact that the majority of its management staff come from social work or other non-business backgrounds. To scale up its business and to achieve self-sustainability, it is imperative for the organization to revisit its management and human resources strategies, and find ways to improve the financial performance of its social enterprises.