SE Series: The What and Where of Social Enterprise in Canada

Since opening in 2004, the Centre for Social Innovation has focused on catalyzing, supporting and inspiring social innovation. There is no doubt in my mind that social enterprise and social finance fall squarely within this realm.

Social enterprise is about blending social, environmental and business outcomes. It is about independence. It is about resilience. It is about having a voice. And, most importantly, it is about achieving a social mission. Social enterprise is not a panacea; it is a powerful and practical tool to enable the nonprofit sector to be more effective and less trapped by funding constraints.

When we began, CSI focused on building social enterprise networks as a way to evolve the sector. We convened and launched the Enterprising Nonprofits Program in Toronto as a way to begin seeding the social enterprise sector in Toronto. It quickly became clear that given our limited resources, and the nature of the challenge, the only way that we could significantly contribute would be to invest in building a movement and prodding where we could. Using networks to build movements is part of everything we do at CSI. We believe in the 'ecosystems' approach to social innovation: by working together, we have a greater chance of effecting significant change.

Now, as CSI’s 5^th anniversary approaches, we have been reflecting on our work in this area, and we are delighted at the emergence of an increasingly organized social enterprise and finance sector in Ontario. We are proud of our role in its development.

People and organizations are aligning, and there is tremendous energy behind this work. I remember trying to explain why Ontario Trillium Foundation should fund social enterprise to Robin Cardozo and Pat Else back in 2005. Now, Trillium is funding its 2^nd Futures Fund focused on social enterprise. If this isn't an indicator of a sea change, I don't know what is. Another sign is the Ontario Government funding MaRS in 2007 to focus on social innovation. Much of their energy has gone into social finance and social enterprise. When you have players this big entering the fray, there must be some 'there' there.

For CSI's part, I think that we have successfully catalyzed, supported and I hope inspired. But there is so much more to do and this is just the beginning. Now it is time to bring everyone into alignment and make this happen! That's the point of this posting.

I constantly get asked to give people a sense of the social enterprise sector in Ontario. I will provide my sense of the policy priorities for the sector, followed by a brief overview of the sector, the networks and initiatives that are forming, and the people that are involved for readers who are less familiar with the specific developments over the past five years. I have also attached is a PDF map of the sector (a little old, but interesting). Naturally, this is from my perspective; it leans to nonprofit social enterprise, and it is focused on Ontario. I am sure the post isn't comprehensive, but I think it is vital for everyone to be aware of these moving parts. I invite you to use this knowledge to support these important initiatives in the future, and enable us to move towards a more robust environment with the tools and policies in place to allow us to better achieve our social missions.

Looking at the description of the sector I’ve outlined below, you’ll quickly see that the crucial networks around social finance and social enterprise are forming. At the same time, the 'big bank' economy has lost its luster, and our economy desperately needs to be reinvented. The need to focus on small and local should be obvious. At the same time, social entrepreneurs are full of energy, ready to meet the demands of this new economy. Now, all we need is for government to wrap its head around how a double, or triple, bottom line can meet social needs and create new economies capable of generating healthier communities.

Both the US and the UK have taken bold action to foster a more vibrant civil society and third sector. Their governments have realized that an investment in the third sector is in fact a key foundation on which to build a more future-focused new economy that can deliver on multiple bottom lines. Where is Canada in this movement?

On November 18-20 this year, the Social Enterprise Council of Canada will be convening the 3rd Canadian Conference on Social Enterprise. This event will offer high-level practitioner training, and it will be a defining moment in the development of a national policy strategy to enable social enterprise and finance. We are going to need all hands on deck. As a social entrepreneur, this is what I would like to see in such a policy:

• make all current business incentive programs equally available (if not exclusively) to nonprofits

• create a Social Enterprise Start-up Fund that is geared to both capacity building and start up costs for nonprofit social enterprise

• support the development of Enterprising Nonprofits Programs in communities across Canada that are able to seed social enterprise thinking into the sector

• implement tax incentives that enable social enterprises to take their ventures to scale

• explore 'flow through' tax incentives, which recognize the high level of research and development that is required in the social enterprise sector

• extend the EI self-employment development program to social entrepreneurs, so that they have the means to start their initiatives

• implement a full range of social financing tools that are available exclusively to nonprofit social enterprise, able to fit their different needs.

• invest in building the capacity of the sector to succeed in operating values-based business

As with other industries like media and high tech , social enterprise will grow much more quickly if government can create incentives and prime the pump. The networks are aligning, the entrepreneurs are gearing up, and the visions are being crafted. Don’t get me wrong, this movement will happen with or without government, but it would be a heck of lot easier, and faster, if provincial and federal institutions and governments would get on board and grasp the potential of double and triple bottom line enterprises – enterprises capable of rebuilding our economy, creating jobs for our citizens, and achieving a social mission at the same time. It’s pretty hard to argue with this line of thought, don't you agree?

Tonya Surman
Founding Executive Director, Centre for Social Innovation
Co-Chair, Social Enterprise Council of Canada
Co-Chair, Ontario Nonprofit Network

PS. I've included some key information on who's who for people not familiar with social enterprise in Ontario. These are the networks that are moving this sector forward.

Who's Who?

Social Enterprise Council of Canada (SECC)

The Social Enterprise Council of Canada (SECC) is a think-tank of social entrepreneurs with a focus on growing the social enterprise sector in Canada. The founding Council are the leaders and entrepreneurs behind the Canadian Conference on Social Enterprise (CCSE) (Toronto – 2005 and Vancouver – 2007 and the upcoming conference in Toronto this November). This group has been instrumental in the development of an emergent national social enterprise policy, with contributions coming from across the country. This national effort has two goals: 1) to support entrepreneurs in building successful social enterprises and 2) to create an enabling environment in which social enterprise can thrive. CCSE was really spearheaded by the Toronto Enterprise Fund @ United Way of Toronto, which has played a real leadership role in building the capacity of social purpose enterprise.

Members of SECC include: David LePage – Enterprising Nonprofits Program - BC, Tonya Surman – Centre for Social Innovation (CSI) and ENP-TO - Ontario, Anne Jamieson – Toronto Enterprise Fund @ United Way Toronto - Ontario, Marty Donkovort - InnerCity Renovations - Manitoba, Norman Greenberg – Connections Clubhouse – Nova Scotia, Andy Horsnell – Community Services Council Newfoundland and Labrador, Sonia Pouyat – KidsLink, Waterloo, Ontario, Ethel Cote – and Economie solidaire de l'Ontario.

Causeway Social Finance Initiative

Causeway is a partnership created to help build out a national social finance program and develop the necessary relationships with mainstream financial institutions. It has convened two Social Finance events targeted at engaging senior executives from the financial community (banks, mutual fund companies, investment firms, insurance companies, pension funds), financial legal sector, plus foundations, civic leaders and nonprofit social enterprise practitioners. It has also be active working to create social finance tools at the national level.

Causeway was founded by: Ashoka Canada, Canadian Co-operative Association, Carleton University, J.W. McConnell Family Foundation, MaRS, PLAN Institute, Social Capital Partners and Tides Canada Foundation.

Community Economic Development Network – CEDNet

CEDnet is a national membership of CED practitioners that seeks to increase the scale and effectiveness of community economic development (CED) in Canada. CEDnet has offered an active voice and been a strong collaborator for social enterprise. Their partnership with the Chantier and OSER have laid a strong foundation of shared values as we explore how to leverage our shared goals and objectvies for healthy local communities through multiple bottom line thinking.

Ontario Social Economy Roundtable (OSER)

OSER is a broad table that will unite and coordinate those that are interested in building an enabling social economy in Ontario. The focus of this group will emerge through a consultative process in the community, but there are several overarching goals: 1) provide a broad table for enablers, practitioners, funders, policy makers, researchers, and others that support social enterprise to come together to connect and coordinate 2) create an enabling policy environment with a focus on Ontario's regulatory environment and financing mechanisms 3) increase the public and decision-maker understanding and awareness of the social economy and social enterprise in Ontario and 4) build the capacity of practitioners to engage and build success social economy enterprises.

A key asset of OSER is the coming together of the community economic development sector, the cooperative sector and the social enterprise sector. Altho not covered directly here, it can not be underestimated, the work that these two sectors have contributed to this work. The social economy really does offer a broad umbrella to unite these sectors in their shared objectives to strengthen Ontario's econony through mission-based work.

The collaborative partners at this table currently include: Centre for Social Innovation (CSI), Community Economic Development Network (CEDNet) – Ontario, Economie solidaire de l'Ontario (ESO), Ontario Cooperative Association (OnCo-op), Ontario Nonprofit Network (ONN), Social Economy Centre at the University of Toronto, Social Enterprise Ontario, Social Innovation Generation (SiG @MaRS) and the United Way of Greater Toronto's Toronto Enterprise Fund, OSER has just confirmed OTF funding to finance their work.

Ontario Nonprofit Network (ONN)

ONN is an emergent network of networks to connect and give voice to the nonprofit sector in Ontario. Its work is primarily focused on addressing cross-cutting issues affecting the nonprofit sector. Key among these are the issues of social enterprise and social finance. As such, it has taken action to ensure that Ontario's regulatory environment will enable social enterprise (Corporations Act), has targeted other legislation restricting social enterprise (Ontario Charities Act) and is working to strengthen our relationship with government so that we can engage in a more fruitful dialogue about enabling social enterprise and other issues affecting the sector. ONN has also supported the development of two 'constellations' – SEO and SFO. ONN has just received funding from Ontario Trillium Foundation to support their work.www.ontariononprofitnetwork.ca

The yin and yang of the social economy really are enterprise and finance. Truly a symbiotic relationship, they need each other to bring the social economy to life.

Social Enterprise Ontario (SEO) – SEO is a constellation of ONN and a regional partner of the Social Enterprise Council of Canada ( SECC). SEO is a mailing list of over 600 practitioners that have an express interest in social enterprise. At the moment, there are no resources allocated to support SEO. It has been initiated by CSI and the ENP-TO program (off the side of our desk) with the hopes of providing a vehicle to communicate and connect with social entrepreneurs and enterprise managers across the province.

Social Finance Ontario (SFO) – SFO is a constellation of ONN with the support of MaRS and Causeway. The group is focused on engaging the finance community to become more engaged in 'social finance'. They are actively engaged in researching and exploring the range of social finance strategies. There is a sense that this group will be, within that broader context, focusing on identifying those key winnable strategies that we could put forward to support the financing of the social enterprise sector. SFO, through MaRS, just received $300K from OTF to finance their work.

Social Purpose Enterprise Network (SPEN)

The Social Purpose Enterprise Network, Toronto (SPEN Toronto) is an informal network of enterprise managers working with mission based businesses that provide training or jobs for persons with employment challenges. SPEN was born with support from the Toronto Enterprise Fund. SPEN has a home @ CSI.

Green Enterprise Toronto

Green Enterprise Toronto is a network of local, independent enterprises and customers in the Toronto region that are committed to: a strong community, a healthy environment, providing meaningful employment and buying local first. GET is about life enhancing commerce. GET's work is focussed on building the capacity of green enterprise and connecting customers to these businesses. GET is an incubated project of CSI.

en francais.....

Les tenants et les aboutissants de l’entreprise sociale au Canada

• rendre tous les programmes d’encouragement aux entreprises également (voire exclusivement) accessibles aux organismes sans but lucratif
• créer un fonds de démarrage destiné aux entreprises sociales qui s’adapte au développement des ressources et aux coûts de démarrage des entreprises sociales sans but lucratif
• appuyer la mise en place des programmes Enterprising Nonprofits au sein des communautés au Canada qui permettent d’engager une réflexion sur l’entreprise sociale dans le secteur
• mettre en place des encouragements fiscaux qui permettent aux entreprises sociales de faire prendre de l’ampleur à leurs projets
• étudier les encouragements fiscaux accréditifs, qui reconnaissent le niveau élevé de recherche et de développement que requiert le secteur de l’entreprise sociale
• étendre le programme de développement de l’activité indépendante de l’assurance-emploi aux entrepreneurs du domaine social, de sorte qu’ils aient les moyens de lancer leurs initiatives
• mettre en œuvre une gamme complète d’outils financiers qui soit mise exclusivement à la disposition des entreprises sociales sans but lucratif et qui s’adapte à leurs besoins.