The foundations and principles upon which NTUC Social Enterprises (NTUC SEs) are built, serving over two million people today, are set to get even stronger for even greater social impact in the next five years.
Speaking at the NTUC Social Enterprises Vision 2015 Seminar on 14 April 2011, NTUC Social Enterprise Development Council Chairman and Minister in the Prime Minister’s Office Lim Boon Heng zeroed in on three strategic thrusts to expand NTUC SEs social impact:
“First, we will expand our role to keep the prices of essentials stable to support families to stretch their every hard-earned dollar. Second, we will break new ground to develop new approaches to meet enduring and new emergent needs. Third, we will expand services to support three-generational families and help to reinforce a sense of connectedness for each family.”
Minister Lim said NTUC SEs meet customers’ needs for quality and accessibility at an affordable price for a wide range of goods and services in three key ways. Firstly, setting benchmark prices for key essential goods and services so that more families find them affordable and good value for money. Secondly, offering direct price discounts, rebates and cash bonus (this amounted to $80 million in 2010) and, thirdly, finding ways to create more value for customers. These hallmarks are clearly demonstrated by the current 12 NTUC SEs, whether big or small.
He pointed out that the single most important factor enabling NTUC SEs’ considerable social impact is their unique DNA with two mutually reinforcing dimensions.
“One, the NTUC and Labour Movement created Social Enterprises to deliver Do Good impact, that is, to meet under-served or un-served core needs of working families” and “two, we deliver the goods and services through financially sustainable and profitable business models. The Social Enterprises need to Do Well, that is, to be profitable in order to reinvest to improve quality and reach more customers. However, we do not seek to maximise profits or shareholders’ returns. This is the reason why we are able to deliver social impact through our affordable pricing strategy.
“How do we live this DNA in practice? Before we start any new enterprises, we study the industry carefully. We ascertain how to make an impact: how to be cheaper for the same quality provided by existing market players; how to be better for the same price; or how to make accessible something not currently available. We have to be confident that our new enterprise would be able to operate within prevailing market conditions, and compete successfully.”
Minister Lim reiterated that NTUC SEs would develop new enterprises only where there is substantial scope for sustainable social impact, and also consider exiting existing businesses where impact is limited.
“So, what is the essence of the SE2015 Vision? It is a collective commitment to expand our social impact, in response to both enduring needs and also emergent ones of the diverse population made of all collars, ages and nationalities. The NTUC Group of SEs aims to enable access to affordable quality products and services that stretch dollar, time and employability of working people.”
