By Isabel Wong
With China rapidly becoming a major global power, the Shanghai-Hong Kong Stock Connect linking up in October 2014 and pro-democracy sentiments strengthening in Hong Kong, nobody is certain about what kind of future is facing the Pearl of the Orient. But Hong Kong is not new to challenges and changes, and the entrepreneurial spirit is still alive within the territory's people, and this is why we continue to see so many people establishing their own businesses there.
Yet Suhail Bindra, the Managing Director of Hong Kong-based non-governmental organization The Eureka Consulting Group (ECG), does not think having an entrepreneurial mindset alone necessarily brings success. Instead, he has a team to help aspiring entrepreneurs help grow their businesses.
ECG is a non-profit student-led consulting social enterprise founded by a group of students at the University of Hong Kong. “Using knowledge to empower” is the motto of ECG and where the value of the organisation lies, according to Bindra. ECG consults SMEs, social enterprises, NGOs, governmental and quasi-governmental bodies, and its leadership team has students from the faculties of business, law and architecture. “Our strength lies in our diversity; we focus on specific things like design, sustainability, legal work and marketing strategies. We have the whole package and that’s what makes it [ECG] different,” Bindra explains.
Financing operations is one of the main challenges startups face. To non-profit social enterprises like ECG, looking for funding sources is like getting blood out of a stone, since they do not pay dividends to appeal investors. The only dividend is social good. “We [the leadership team] each put in our own money," Bindra says, "which is a tangible commitment to our organization."
Bindra and his team have tried to apply for funds from The Knowledge Exchange Office of the University of Hong Kong, a small unit set up to support the development of a long-term strategy for knowledge exchange that also offers grants up to 20 -25K to support student or staff-run projects, but all to no avail. “All we have from CEDARS [Centre of Development and Resources for Students] is the incubation service,” although ECG has also applied for financial support from CEDARS that offers both pecuniary and non-pecuniary support for eligible groups.
ECG will soon announce its first three clients, which include a fashion brand, charity organization and an NGO. Bindra expresses his excitement over the diversity of clientele. When asked how the ECG team is going to fulfill the different needs of their clients, Bindra says: “we have people from different faculties at HKU like law students who know about contracts, tort and criminal liability. So we will be taking different people and putting them in a team with people with the right skills, including MBA students who have more practical experience in the industry.” According to Bindra, every candidate who applies to work as a consultant for the organization has to go through several stages of selection process to make sure they are right for ECG.
Bindra recalls that the idea of ECG is born from a conversation at a coffee shop with his friend Vikay, the co-founder and chairman of ECG: “Vikay and I were sitting at a coffee shop and discussing what we could do to improve charity NGOs’ operations. We noticed their inefficiencies that could be tackled.” What’s followed the conversation was a 10-month incubation period where Bindra and his team worked hard on developing partnerships, securing the necessary alliances, seeking funds and getting the right people on board to lead the initiative.
“It [the incubation period] takes a lot of time and commitment, and it doesn’t give you any gratification,” Bindra continues, “but planning for a project is key. You plan it well, you execute it well.” Life after the official launch of ECG has not been any easier. “I’ve met at least 150 people individually to talk about ECG. As a social enterprise, we really have to rely on the kindness of strangers,” says Bindra.
Hong Kong’s current business climate for social entrepreneurship is not entirely tough or favorable either, according to Bindra. “I just came back from Cambridge this week. The difference between Cambridge and Hong Kong is stark. You see universities in Hong Kong with a lot of risk-aversity. For everything, they want a proven track record and they want to see you’ve been successful in the past before they will support you.” Too much red tape could be a problem for people who are starting up for the first time, and Bindra sees many problems in university procedures: “there is not much procedure clarity… some of the resources are poorly allocated. There should be less reporting requirements and more encouragement.”
Looking ahead to ECG’s future development, Bindra and his team is hoping that donations will be their primary source of sustenance. “Our lawyers are applying for tax-exempt status, which means donors will not have to pay tax on the amount they donate,” he says. But still, it is a long process that takes at least 9 months cooperating with the Inland Revenue Department. It seems a tougher journey still lies ahead for Bindra and his team, but success never comes easy. Running on four hours' sleep, Bindra leaves for his next appointment when the interview comes to an end.
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