A support program for start-up social enterprises in the environment sector was conceived by LG Electronics and LG Chem with the aim of providing comprehensive support to start-up social enterprises in the environment sector through multilateral cooperation between the public sector, private sector, industry, and academia.
Since 2011, the program has in invested KRW 6 billion to foster start-up social enterprises that are expected to make strong growth and great contributions to their communities, and a total of 39 social enterprises in the environment sector (including start-ups and excluding repeat beneficiaries) have received support over the past three years.
The program provides start-up social enterprises with a wide range of support, including grants to promote their organizational capabilities, business independency, and sustainability. The program strives to build and foster a success model for social enterprises in the environment sector and pursues a strong and collaborative network with related organizations to ensure that necessary support is provided effectively and efficiently. Further details are as follows:
Beneficiaries of Program
- - Start-up social enterprises with high potential to make strong growth and great contributions to their communities
Program Operation Model
- - Effective utilization of disparate expertise of stakeholders, including businesses, government agencies, and NGOs
Way to support
- - Financial Support: Combination of grants and loans, Incentives provided to high performers
- - Technological Support: Productivity improvement consulting from the Labor Union of LG Electronics
- - Training Support: Monthly seminars, workshops, and overseas training opportunities
- - Distribution Support: Joint marketing at industry forums and trade fairs
Other: Development and implementation of KPI for social enterprises in the environment sector
Developing KPI for Social Enterprises in the Environment Sector
In an effort to contribute to building a framework for academic studies on social enterprises, LG Electronics is cooperating with the Research Institute for Social Enterprise to develop Key Performance Index for social enterprises. This index combines the target enterprise’ financial performance and social performance based on SROI(Social Return On Investment) to calculate “Blended Value,” based on which the social value of the enterprise is measured. Upon completing development, the index will be provided to the Ministry of Employment and Labor and the Ministry of Environment to support the establishment of theoretic grounds for measuring performance of social enterprises.