Was it 2004? Really?

With the close of the first quarter it's a good time to ask ...

How do you feel about the state of Social Enterprise in Canada?

Pretty good? How about compared to the heady days of the 2004 Federal Budget? Remember that?

Canadian PM announces big $$$ for Social Economy

In his opening speech to Parliament, Prime Minister, Paul Martin announced that social enterprises would be assisted by a fund of CAD$152 million (over 5 years), and in a move reminiscent of the recent UK initiative, they would have access to the government’s small business programs.

Responsibility for the social economy initiative (along with community development) will reside in a new Ministry of Human Resources and Skills Development – indicating clearly that the government sees it as an employment generating initiative. By contrast, the rest of the voluntary sector initiative is in the Ministry of Social Development that is responsible for income support and other social services.

In his speech, Martin gave an indication of the source of the social economy initiative. He admitted that since the beginning of his political career he had been involved in RESO, an interesting collaborative venture between unions, businesses, and community groups in a large rundown area of southwest Montreal. RESO is often used as an example of successful neighbourhood regeneration, but in this case, the product is self-help enterprise rather than government.

Other interesting initiatives announced in the Canadian 2004 budget included:

• A commitment to a new not-for-profit corporations act, designed to reduce the regulatory burden on the nonprofit sector and improve financial accountability
  
• Acceptance of most of the recommendations on the tax treatment of charities made by the Joint Regulatory Table (between the government and the voluntary sector), established as part of the Canadian government/voluntary sector ACCORD
  
• A government investigation into the feasibility of establishing a bank for the charitable sector.

[Thanks to Accord for the reminder.]

And there was Eleni Bakopanos' speech at New Century, New Risks: Challenges for Social Development in Canada

The Social Economy

... However, I do believe that the social economy is an area that the federal government did not pay enough attention to in the past. It is only in the past two years that the social economy has gone from a situation where few people in the federal government had even heard of the social economy, to the February 2004 Speech from the Throne which recognized the vital role of this sector to Canada’s social foundations.

Social economy enterprises operate like businesses to produce goods and services that generate revenues, but they manage their operations on a not-for profit basis by reinvesting all revenues to achieve a social purpose rather than to generate a profit. They play an important role in promoting local and regional development, and set as their goal the integration or protection of their members and employees, including those most disadvantaged, without discriminating in any way.

The functioning of social enterprises is closely linked to the concept of social responsibility. In fact, the social economy reflects what many are now referring to as the ethical economy—corporate citizenship and activities that promote economic and social well-being, inclusion and justice.

This approach is not new, and it is all around us. It may be the day care centre, the housing co-op, a senior support service, or a local community economic development organization. Overall, Canada has about 10,000 enterprises and organizations that employ about 100,000 people and that have sales of about $20 billion ($2 million in average sales).

It is but one dimension of a broader community movement in Canada. The movement is being revitalized by innovative practices that are founded on citizen-led, community-based processes that create local partnerships and solutions.

And, communities and social entrepreneurs have a remarkable track record of success. To be more specific, I would like to give you one example from my own riding, in Ahuntsic. There is a wonderful organization called AMRAC. It grew out of a community plan to revitalize the local neighbourhood and create employment opportunities. AMRAC refurbishes furniture and builds new furniture. It employs and trains people who are having difficulties finding work. The organization has two storefronts––one for the furniture it sells to the general public, and another store that provides household items at prices that are affordable to individuals and families with low incomes. The revenues generated are reinvested into training programs and equipment.

IAM CARES is another example. It stands for the International Association of Machinists’ Centre for Administering Rehabilitation and Employment Services. IAM CARES offers services to those with physical and sensory disabilities to help them find jobs. Its mandate is to take on 400 clients per year and place about half in jobs. They usually surpass that number.

To help fulfill the potential of the social economy, we have been asking stakeholders what they see as the barriers holding back the growth of social enterprise in Canada. Five key barriers keep coming up in these discussions. The first is a lack of recognition. This relates partly to public awareness. Expanded political recognition can play a part in shifting attitudes and helping to establish a climate that properly honours social and community-owned businesses for the crucial role they play. There are also issues about how social enterprises are recognized under the law, particularly in relation to tax status.

Another issue is the need for a level playing field so that social enterprises can have access to the business development supports that governments currently make available to private business. Related to this is a need for access to loans, as well as long-term patient capital and a view that the financing needs of social enterprises are not being adequately met by private banks and lending institutions.

Another very important barrier, at least in some communities, is the lack of prior community-based planning exercises that are required to generate new social enterprises and underpin their growth. In particular, this relates to the need to build capacity among the various economic development organizations in the community that help to drive community partnerships.

Organizational and human capacity issues are also a challenge. Social enterprises, and the networks and organizations that support them, require skilled employees, managers and board members. And finally, there is a lack of research and knowledge. We must demonstrate when and why social economy approaches are successful, and identify and share the strategies that work best. Building this evidence is essential for two reasons: first, because it will help build credibility and shift public attitudes about the social economy, and second, because it will help those involved in the social economy to continually improve and become stronger.

I can imagine you now want to know: “What is the role of the federal government in the social economy?” Let me assure you that the social economy has emerged as a significant new priority for the Government of Canada. The February 2004 Speech from the Throne acknowledged the promising and vital contribution of social entrepreneurship in community development. The March 2004 Budget announced up to $132 million in new spending and firmly put the social economy on the Government’s agenda for helping communities. ...

So ... how do you feel?

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Tags for information about: for:vsef, Social Economy, Nonprofit, Social Enterprise

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[Conference] BC Women’s Economic Institute Conference - Starting with Women’s Lives: Changing Today’s Economy

We are pleased to announce the first annual BC Women’s Economic Institute Conference on March 7 – 10, 2007 at the YWCA in Vancouver, BC. The conference, “Starting with Women’s Lives: Changing Today’s Economy”, is co-hosted and sponsored by Atira Women’s Resource Society and the Canadian Women’s Foundation with support from the Vancouver Agreement.

Join other community leaders for a skill-building conference designed to strengthen your organization's toolkit for supporting women to develop their economic potential.

Who should attend:

Leaders of BC-based women's organizations, community development organizations with a focus on programs for women, self-employment, asset development &/or employment training, CED practitioners, civil servants, women interested in women's economic empowerment, and academics.

Here's the schedule:

Wednesday, March 7
Evening Registration & Welcome Reception
Keynote Speaker: Chief Judith Sayers

Thursday, March 8
Breakfast & Networking
Skill-building Sessions
Afternoon Workshops
Consultations & Networking
Networking Dinners
Case Study #1

Friday, March 9
Breakfast & Networking
Skill-building Sessions
Workshops
On site Dinners
Case Study#2

Saturday, March 10
Breakfast & Networking
Skill-building Sessions
Closing Plenary
Closing Reception


Register online now and go here for information about the conference workshops and schedule. Online registration will close on February 23, 2007 at midnight.

Bursaries are available. To apply go here.

Have other questions ... contact Fei Wang at (604) 331-1407 (x. 107).
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Tags for information about: for:vsef, Social Economy, Atira, Conference

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[Education] Study Social Enterprise and Community Development

We're grateful to Cory Way for introducing the "Master of Studies (MSt) in Social Enterprise and Community Development" - a two-year, part-time degree taught and administered by the Institute of Continuing Education and the Judge Business School at the University of Cambridge.

The degree is designed for people who have full-time jobs but who wish to enhance their professional qualifications through two years of part-time management education at one of the oldest and most prestigious universities in the world.

Potential applicants may find the following helpful:

Is this course for me?
The degree programme is designed for those who are, or aspire to be, chief executives, senior managers, policy makers, academics or entrepreneurs in social enterprise. Whilst most applicants will have significant work experience, we also encourage applications from candidates who possess exceptional promise at the earlier stages of their careers. Applications from across all sectors, industries, cultures, backgrounds and nations are welcome.

What will I gain?
This dynamic programme develops executive skills in leadership, management, critical evaluation and research. Students acquire specialised management education and skills from first-class faculty during the following courses in the first year:

(1) Business and Project Management;

(2) Finance and Enterprise;

(3) People, Organisations and Leadership;

(4) The Social and Political Context of Social Enterprise and Community Development;

(5) Contemporary Challenges and Opportunities in Social Enterprise and Community Development.

During the second year, students prepare a dissertation of their own choosing with direct supervision from faculty. Numerous guest speakers and diverse fellow students also enhance the programme. Successful students will earn a Master of Studies (MSt) in Social Enterprise and Community Development from the Judge Business School, University of Cambridge.

Can I work full-time and still pursue the degree?
The course is taught during seven short residential teaching blocks over two years in Cambridge, England. Residential teaching periods range from three to ten days. Attendance during these residential sessions is required. Applicants are encouraged to review the dates listed in the programme materials to ensure that they can fulfil the residency requirements. During non-residential periods students receive faculty supervision and feedback via the internet.

How do I apply?
To learn more and to apply ... go here. Admissions enquiries should be directed to Sarah Blakeney, Academic Programme Manager, at +44 (0)1954 280 280.

Applications are considered on a 'rolling' basis, with a deadline of 31 March.

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Tags for information about: for:vsef, Social Economy, Nonprofit, Cambridge

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An Investment in Affordable Credit ... elsewhere

This past December 11th, Citizens Bank - a subsidiary of VanCity - announced the launch of their Shared World Term Deposit (SWTD).

This is how Citizens outlines the concept of the SWTD:

Your investment dollars help provide affordable credit to people in the world’s poorest communities, allowing them to educate their children, obtain secure housing for their families, develop micro and small businesses, and otherwise improve their quality of life.

Citizens is pooling the capital with the Calvert Social Investment Foundation. In short, Citizens piggybacks on Calvert to invest in below-market rates in international community loans funds that address poverty issues around the world. These community loan funds provide credit to help individuals and communities build assets and transform lives.

Here's a link to see the current (assume Q4 06) allocation of the capital. Without doubt, it's a blue ribbon inventory of laudable organizations.

Unfortunately missing from the information provided by Citizens Bank is any mention of the "spread on the yield". After all ... offering 3.70% (Dec 8th estimated yield) on a non-redeemable 12-month term deposit makes one wonder.

It remains to be seen whether the SWTD can capture the attention of RRSP savers like Ethical Funds. We hope it does, and opens opportunities to expand MicroFinance.

Maybe even in our backyard ...

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Tags for information about: for:vsef, Social Economy, MicroCredit, MicroFinance

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Social Economy in BC Roundtable (pt ii)

Just received the follow up report to the The Social Economy in BC roundtable facilitated by IMPACS (Institute for Media, Policy and Civil Society). The VSEF wrote about the session here.

A six page summary of the morning discussion is accompanied by copies of the presentations made by Tim Beachy, Elisabeth Geller, and Rupert Downing.

The report does offer these "key themes for follow up":

a. BC has enormous talent and capacity in this area;
b. we need to map our existing resources accurately;
c. case studies of successes would be valuable;
d. it is worthwhile to develop a "Made in BC" position and strategy on the social economy, and to take the lead in western Canada;
e. attention must be paid to existing collaborations and leadership, including the credit union movement, the voluntary sector (VOCBC, VSF), the CED community (CEDNet) and the cooperative movement (BCCA);
f. there is no single answer, but hundreds of opportunities and potential approaches;
g. the group participating in the Roundtable can serve as a reference group in shaping a position and strategy;
h. there are others not present who could add value to this effort, so the circle needs to be broadened, and to include the rest of BC;
i. dialogues in other parts of the province are key;
j. there is a history and expertise in community grant allocation processes that could inform how social economy funds are spent in B.C.; there needs to further exploration of this;
k. participation from the corporate world may be helpful;
l. while dialogue is important, we should focus on local action-oriented activities;
m. we should each canvass the thoughts of our neighbours and networks and stimulate debate on the social economy

The group that convened the roundtable met on September 2nd to consider how best to follow-up the dialogue. They'll meet again on September 8th to clarify an action plan. I hope to keep you posted.