Under the trend towards globalization, as competition between companies grows fierce and local businesses impacted by free trade and the financial crisis struggle to survive, governments across the world use policies to encourage non-profit organizations adopt a self-financing approach and encourage enterprises include social values in their pursuit of profit, moving towards the ideology of social enterprises.
The Ministry of Labor (MOL) launched the Multi-Employment Promotion Program (MEPP) in 2002, where civic organizations propose innovative plans that integrate local specialties and work with the government to create localized employment opportunities for vulnerable groups.
For more than 10 years, the MOL and civic organizations have grown side by side. Civic organizations have built their management capabilities and enhanced the depth and breadth of their services through MEPP. The MOL has provided the organizations with timely assistance when needed and guided their development.
Also, the MOL established counseling mechanisms, organized project management training courses to boost managerial capacities, brought in social enterprise management concepts, analyzed Fairtrade index and models, and guided enterprises to develop permanent partnerships with civic organizations.
Specific measures taken to develop social enterprises evolved through the years. Organizations participating in the MEPP started developing their social enterprise through the counseling mechanism, promoting NPO self-sufficiency and sustainable development thereby creating stable employment opportunities for vulnerable groups.
In 2012, the MOL amended the Empowering Employment Program (EEP) to include industrial transformation or innovation, social business ventures, communities or employment support systems for disadvantaged and vulnerable groups, regional regeneration development, and vertical or horizontal integration of services and industries.
The MEPP and EEP programs are anticipated to serve as channels for the government and citizens to cooperate and develop social enterprises and shape its ecosystem.
To create a friendly environment for social enterprises and help its development, the Executive Yuan directed ministries to jointly promote social enterprises according to their responsibilities. The MOL took measures to advocate social enterprises and hopes to solve social problems through innovative business models.