Transcript PowerPoint Template (English Version)

Interdepartmental Working Group on Social
Finance:
An Introduction to Social Enterprise
January 19, 2012
DRAFT
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
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.”
 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 HRSDC
The 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.
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SECRET
Social Partnerships Agenda
 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-forprofit (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
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Committed to implementing a social partnerships approach
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
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What is a Social Enterprise?
 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
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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
Economic
• Production of goods &
services
• Human capital
development
• Job creation / retention
Social
• Enterprise
development • Affordable housing
• Community economic
• Childcare and
Environmental
development
eldercare
• Recycling projects
• Innovation
• Immigrant
settlement
• Car-sharing
services
• Women’s shelters
• Developing and
• Educational
promoting local
services
renewable energy
• Community
• Environmental
renewal projects
assessment
• Culture &
services
recreation
• Environmental
• Recovery and
protection
transition services
• Conservation
for addicts and
efforts
criminal offenders
• Crime prevention
initiatives
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Snapshot of examples
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The Scan
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
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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
–
–
2.
3.
4.
E.g. Writing a business plan
Sales and marketing strategic plans
Access to Capital
Regulatory barriers
Measurement
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Discussion
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