Interdepartmental Working Group on Social Finance:

An Introduction to Social Enterprise

January 19, 2012

DRAFT

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Purpose of Deck

The purpose of this deck is to:

Initiate discussion about SME resources and support for NFPs

Provide an overview of social enterprise and explain why the GoC continues to be interested

To initiate a discussion among government departments on social enterprises and the challenges they face to growth

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Social Partnerships Initiative

Social Partnerships Agenda is about:– Encouraging individuals, businesses and organizations to partner with NFPs and

social enterprises to provide investments and business development expertise. – Developing strategies to mitigate actual and perceived risks associated with investing

and providing financing (mortgages, seed funding, etc.) to NFPs. – Facilitating the development of new forms of measurement that account for social and

economic returns.

Key Priority for HRSDCThe Social Partnerships Agenda seeks to increase the impact of federal spending by:

– Encouraging organizations to leverage government funding to attract resources from the private sector, and engaging with community leaders to support social partnerships.

Overall Objective Policy Direction- Budget 2011 “The Government will take steps to complement

community efforts by encouraging the development of government/community partnerships, enabling communities to tackle local challenges and testing new approaches to improve performance.”

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Some groups face complex and persistent social challenges (e.g., homelessness, family breakdown, aboriginal issues, immigrant exclusion)

New community-based approaches involving the private and not-for-profit (NFP) sectors are emerging:

– Collaboration among community groups– New business models are emerging– Increase in the number of individuals and organizations

interested in investments that benefit communities

The GoC is committed to take steps to complement the efforts of communities

Some Federal Departments are making early efforts to engage with partners to support and develop innovative ideas

SECRET

Social Partnerships Agenda

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Last winter, we began a new approach to social issues

1. Improving the efficiency and accessibility of grant and contribution programs

2. Doing our Business Differently – Increasing the impact of federal spending

3. Engagement – Encouraging volunteerism and participation of Canadians

Committed to implementing a social partnerships approach

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Social enterprise is a business with primarily social objectives whose surpluses are principally re-invested for that purpose in the business or in the community, rather than being driven by the need to maximize profit for shareholders and owners

Social enterprises have a double or

triple bottom line– social, environmental, financial– results in blended return on

investment

What is a Social Enterprise?

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Social Enterprise on the ‘profit/people’ continuum

Social enterprises are: found along a continuum of ‘profit and people’-driven activity, with varying degrees of

blended value distinguished by looking at ‘function before form’

– core features: social purpose, business enterprise, community interest and accountability

Insert arrow diagram >>>>

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What roles do social enterprises play?

Social enterprises enable communities to realize their social, environmental and economic goals

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Snapshot of examples

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Across Canada, social enterprises are: found in every part of Canada; urban, rural and

remote communities mostly owned and operated by NFPs; while the

number of privately owned social enterprises is growing

of increasing interest among younger entrepreneurs – new ‘start-ups’

estimated to number between 2,500 to 30,000 nationally

increasingly seen by governments as partners, for example, to ensure community benefit in large scale contracting and private sector businesses seeking to demonstrate care for communities

The Scan

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And, Social Enterprises face key challenges Extensive stakeholder consultations and research indicated

challenges that affect the ability of social enterprises to achieve long-term sustainability and growth and to meet community needs, including:

1. Financial & Business Development – E.g. Writing a business plan– Sales and marketing strategic plans

2. Access to Capital

3. Regulatory barriers

4. Measurement

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Discussion