SINGAPORE - Helping the disadvantaged can be disadvantageous.
For one well-intentioned man, it cost him a whopping $1 million.
That's what Kampung@Simpang Bedok, meant to help aspiring hawkers run their own business, cost Mr Lionel Lye's team.
The 800-seater, 10,000 sq ft, 32-stall place opened in 2012. A food and beverage (F&B) group called Best of Asia, made up of 12 friends from various professions, invested $500,000 to kick-start Singapore's first privately-run hawker centre.
Mr Lye, a renovator, was the managing director. A second group of sponsors pumped in another $500,000.
Mr Lye, 54, said of their not-for-profit model: "We need to have a place in our society where the less well-off can make a living for their families, learn to stand on their feet and be proud of themselves."
Initially, he thought of hiring former convicts after contacts from halfway houses told him about their struggles to land a job. But juggling their probation timing was tough, so Mr Lye worked with disadvantaged families instead.
Under his watch, a handful of tenants paid monthly rent of more than $2,000, depending on their financial background, and kept the profits.
Those unable to pay rent were paid a salary to operate the stall until they were able to take over.
The venture folded last October, before its lease with Far East Organisation was up.
As the venture's personal guarantor, he may face bankruptcy."
When I read one particular comment in the AsiaOne.com forum: 'He (Mr Lye) is stupid and deserved to be a bankrupt.' I feel quite sad.For one well-intentioned man, it cost him a whopping $1 million.
That's what Kampung@Simpang Bedok, meant to help aspiring hawkers run their own business, cost Mr Lionel Lye's team.
The 800-seater, 10,000 sq ft, 32-stall place opened in 2012. A food and beverage (F&B) group called Best of Asia, made up of 12 friends from various professions, invested $500,000 to kick-start Singapore's first privately-run hawker centre.
Mr Lye, a renovator, was the managing director. A second group of sponsors pumped in another $500,000.
Mr Lye, 54, said of their not-for-profit model: "We need to have a place in our society where the less well-off can make a living for their families, learn to stand on their feet and be proud of themselves."
Initially, he thought of hiring former convicts after contacts from halfway houses told him about their struggles to land a job. But juggling their probation timing was tough, so Mr Lye worked with disadvantaged families instead.
Under his watch, a handful of tenants paid monthly rent of more than $2,000, depending on their financial background, and kept the profits.
Those unable to pay rent were paid a salary to operate the stall until they were able to take over.
The venture folded last October, before its lease with Far East Organisation was up.
As the venture's personal guarantor, he may face bankruptcy."
Social Enterprise is NOT an easy undertaking. It has to be a viable business with decent revenue, reasonable costs of operating, turn in a profit while benefitting some members of society that need that extra push and help. So, I salute Mr Lye and his team of investors with good intention to try this, what was then in 2012, the pioneering F&B social enterprise of a significant scale.
Lessons for me are:
1. while I am NOT a F&D expert, it is gratifying to learn that Mr Lye is at peace with the unfortunate outcome and is willing to share the experience so that future social entrepreneurs who still want to venture there can have a list of 'To do' and become successful.
I am against the 'Don't List' as for the brain to process the 'what not to do', it has to put the 'what not to do' in the mind first before taking it out as ' this is NOT to do'. It is inefficient and with limited resources and energy, everyone's focus should be on 'what to do rightly to be successful'!;
2. some obvious remedies or 'what to do right' if we adopt a problem solving approach to the few issues or problems identified from this bad experience are:
a. no life or escalator so that the intended consumers like: 'women in high heels, young family with babies/young kids/elderly parents, etc.' will not climb up there. Then, the less costlier choice of an escalator instead of life must be installed. Yes? Or No?;
b. publicity - I read about the place when it was first launched. It was, I believed during the period where a lot of publicity about letting 'social enterprises run the new generation of hawkers centers' championed by Minister Vivian (or just a passing fancy?) and some renown social entrepreneurs. This could have been improved too if human traffic is too little;
c. motivation of the 'beneficiaries' i.e. the disadvantaged families who are given the chance to run the stalls - as a human capital development practitioner I can appreciate the herculean task of turning an ordinary person into a small business owner starting from the mindset of this person to the many skills like business acumen, simple accounting, customer and employee management, procurement and logistics, etc to be successful. The mindset of the beneficiaries is critical. Are they willing to work hard and smart, to take full responsibility of running a successful F&B outlet!;
d. as for the complex issue of mix of foods, mix of tenants, quality of food and services, cleaning, licensing, etc that I am not familiar with, I will leave them to the F&B experts to comment and make suggestions.
3. My Lye and his fellow investors MUST be cheered and appreciated. They have taken the path less travelled. For those who knocked them down when they are down, it is unhelpful. Given the new generation of hawkers centers will be operating soon, the vision of having and keeping the uniquely Singapore cheap-but-good-foods while consumers can eat, play and relax while providing livelihood to the small stall owners will be a very tough challenge.
Let's learn from every unsuccessful venture in the quest to find the successful for a worthy cause.
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