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Social Enterprise
                      Development in Canada


                                     Ann Armstrong, PhD
                              ann.armstrong@rotman.utoronto.ca
                               November 26, 2010 in OISE 5-240



                                             1
Thursday, November 25, 2010                                      1
Session Plan
                              Welcome & Expectations
                              Session Objectives
                              Examples of Social Enterprises
                              Design Principles & Practices
                              Challenges of Operating Social
                              Enterprises
                                                               2

Thursday, November 25, 2010                                        2
Welcome & Expectations

                              At what stage of social enterprise
                              development is your organization?
                              What do you hope learn today?




                                                                   3

Thursday, November 25, 2010                                            3
Session Objectives
                              Engage in learning conversations with
                              one another
                              Learn about different types of social
                              enterprises
                              Understand key issues in managing
                              social enterprises

                                                                      4

Thursday, November 25, 2010                                               4
Social Entrepreneurs:
             Today’s Reformers &
               Revolutionaries?

                              5
Thursday, November 25, 2010          5
What is a Social Enterprise?
                  Hard to define and create a common
                  understanding!
                  May not matter though - as long as the
                  social mission focus is strong




                                                           6

Thursday, November 25, 2010                                    6
One Definition

                      “Any earned income business or strategy
                      undertaken by a nonprofit to generate
                      revenue in support of its charitable
                      mission.”
                                        (www.se-alliance.org)


                                                                7

Thursday, November 25, 2010                                         7
Social Entrepreneur
                        “The job of the social entrepreneur is to
                        recognize when a part of society is stuck
                        and to provide new ways to get it
                        unstuck. ... Social entrepreneurs are not
                        content to give a fish or [to] teach how to
                        fish. They will not rest until they have
                        revolutionized the fishing industry.”
                                                 (www.ashoka.org)
                                                                      8

Thursday, November 25, 2010                                               8
Essential Attributes

                              Social objective
                              Blend of social and commercial
                              methods: (1) commercial methods to
                              generate funds, (2) starting mission-
                              related businesses, and (3) mutually
                              beneficial partnerships with for-profits

                                                                         9

Thursday, November 25, 2010                                                  9
Social Enterprise Example 1


                              Eva’s Phoenix Print Shop, Toronto
                              http://phoenixprintshop.ca/




                                                                  10

Thursday, November 25, 2010                                            10
Social Enterprise Example 2


                     Inner City Renovations, Winnipeg
                     http://www.icdevelopment.ca/default.asp



                                                               11

Thursday, November 25, 2010                                         11
Social Enterprise Example 3

                              Potluck Café and Catering, Vancouver
                              http://www.potluckcatering.org/
                              about.html



                                                                     12

Thursday, November 25, 2010                                               12
Social Enterprise Example 4


                              Le Bucafin, Trois Rivieres
                              http://www.bucafin.qc.ca/




                                                           13

Thursday, November 25, 2010                                     13
Design Choices

                        Mission Orientation
                        Range from Mission-centric to Mission-
                        related to Mission-unrelated
                                                 (Alter, 2007)



                                                                 14

Thursday, November 25, 2010                                           14
Design Choices

                      Business and Program Integration
                      Range from embedded to overlapping
                      to external
                                               (Alter, 2007)



                                                               15

Thursday, November 25, 2010                                         15
Readiness
                              Organization must determine if it is
                              really ready to embark on social
                              enterprise path
                              Important consideration as it will
                              consume time, resources and often
                              requires new mindset and skills
                              Use Agency Self-Assessment Tool from
                              www.enterprisingnonprofits.ca
                                                                     16

Thursday, November 25, 2010                                               16
Strategies & Opportunities
                              Strategies: Fee for Service, Commercial
                              Ventures, Business Partnerships and
                              Franchising
                              Opportunities: Social Value, Market,
                              Sustainability



                                                                        17

Thursday, November 25, 2010                                                  17
Opportunity Assessment

     High
                                                 Most Attractive
 Mission
   Fit

       Low                    Least Attractive

                                  Low               High
                                     Demand - Need/Desire          18

Thursday, November 25, 2010                                             18
Screening Ideas
                              Preparation
                              Generating ideas - brainstorming is vital
                              activity
                              Quick screening
                              Second screening of ideas
                              Feasibility study
                              Use Scorecard from
                              www.enterprisingnonprofits.ca
                                                                          19

Thursday, November 25, 2010                                                    19
10 Questions - enp Guide

                        (1) Where is your venture now?
                        (2) What is your product or service?
                        (3) What is your market?
                        (4) How will you reach your market?
                        (5) Against whom will you be competing?


                                                                  20

Thursday, November 25, 2010                                            20
10 Questions - enp Guide
                        (6) How will the product be produced the service
                        offered?
                        (7) Who is to be involved?
                        (8) What are your financial projections and how
                        much money do you need?
                        (9) What are the risks?
                        (10) What is the social return on investment
                        and how will it be measured?
                                                                           21

Thursday, November 25, 2010                                                     21
Business Plan - Elements
                              Executive Summary
                              Market Opportunity
                              Business Model
                              Operational & Managerial Processes
                              Social and Environmental Outcomes
                              Financial Statements & Projections
                                                                   22

Thursday, November 25, 2010                                             22
Measure Impact
                              What gets measured gets Done
                              Use Demonstrating Value Dashboard
                              Determine what you know and want to
                              show
                              Available at
                              www.demonstratingvalue.org

                                                                    23

Thursday, November 25, 2010                                              23
Challenges

                         There are many, many,
                                    &
                              still more challenges!
                                                       24

Thursday, November 25, 2010                                 24
Social Challenges
                              Staying on mission
                              Appreciating small and significant
                              wins
                              Finding the right talent for the
                              enterprise manager
                              Measuring social impact

                                                                   25

Thursday, November 25, 2010                                             25
Business Challenges
                              Finding business opportunities that
                              address customer wants/needs that are
                              married to mission
                              Managing costs
                              Marketing expertise and strategy
                              Making money - and in a timely way

                                                                      26

Thursday, November 25, 2010                                                26
Environmental Challenges

                              Creating a green culture
                              Assessing the economic and social costs
                              of being green
                              Integrating the environmental bottom
                              line

                                                                        27

Thursday, November 25, 2010                                                  27
Thank you!


                                  28
Thursday, November 25, 2010                28
References & Resources
                              Alter, K. (2007) Social Enterprise Typology, Virtue Ventures Inc.

                              Quarter, J., L. Mook and A. Armstrong (2009) The Social Economy - A
                              Canadian Perspective, Toronto: UTP.

                              Social Enterprises’ Analytical Model, Chantier de l’économie sociale.

                              The Canadian Social Enterprise Guide, 2nd edition,
                              www.enterprisingnonprofits.ca - free and fabulous download




                                                                                                      29

Thursday, November 25, 2010                                                                                29

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Social Enterprise Development in Canada with Ann Armstrong

  • 1. Social Enterprise Development in Canada Ann Armstrong, PhD ann.armstrong@rotman.utoronto.ca November 26, 2010 in OISE 5-240 1 Thursday, November 25, 2010 1
  • 2. Session Plan Welcome & Expectations Session Objectives Examples of Social Enterprises Design Principles & Practices Challenges of Operating Social Enterprises 2 Thursday, November 25, 2010 2
  • 3. Welcome & Expectations At what stage of social enterprise development is your organization? What do you hope learn today? 3 Thursday, November 25, 2010 3
  • 4. Session Objectives Engage in learning conversations with one another Learn about different types of social enterprises Understand key issues in managing social enterprises 4 Thursday, November 25, 2010 4
  • 5. Social Entrepreneurs: Today’s Reformers & Revolutionaries? 5 Thursday, November 25, 2010 5
  • 6. What is a Social Enterprise? Hard to define and create a common understanding! May not matter though - as long as the social mission focus is strong 6 Thursday, November 25, 2010 6
  • 7. One Definition “Any earned income business or strategy undertaken by a nonprofit to generate revenue in support of its charitable mission.” (www.se-alliance.org) 7 Thursday, November 25, 2010 7
  • 8. Social Entrepreneur “The job of the social entrepreneur is to recognize when a part of society is stuck and to provide new ways to get it unstuck. ... Social entrepreneurs are not content to give a fish or [to] teach how to fish. They will not rest until they have revolutionized the fishing industry.” (www.ashoka.org) 8 Thursday, November 25, 2010 8
  • 9. Essential Attributes Social objective Blend of social and commercial methods: (1) commercial methods to generate funds, (2) starting mission- related businesses, and (3) mutually beneficial partnerships with for-profits 9 Thursday, November 25, 2010 9
  • 10. Social Enterprise Example 1 Eva’s Phoenix Print Shop, Toronto http://phoenixprintshop.ca/ 10 Thursday, November 25, 2010 10
  • 11. Social Enterprise Example 2 Inner City Renovations, Winnipeg http://www.icdevelopment.ca/default.asp 11 Thursday, November 25, 2010 11
  • 12. Social Enterprise Example 3 Potluck Café and Catering, Vancouver http://www.potluckcatering.org/ about.html 12 Thursday, November 25, 2010 12
  • 13. Social Enterprise Example 4 Le Bucafin, Trois Rivieres http://www.bucafin.qc.ca/ 13 Thursday, November 25, 2010 13
  • 14. Design Choices Mission Orientation Range from Mission-centric to Mission- related to Mission-unrelated (Alter, 2007) 14 Thursday, November 25, 2010 14
  • 15. Design Choices Business and Program Integration Range from embedded to overlapping to external (Alter, 2007) 15 Thursday, November 25, 2010 15
  • 16. Readiness Organization must determine if it is really ready to embark on social enterprise path Important consideration as it will consume time, resources and often requires new mindset and skills Use Agency Self-Assessment Tool from www.enterprisingnonprofits.ca 16 Thursday, November 25, 2010 16
  • 17. Strategies & Opportunities Strategies: Fee for Service, Commercial Ventures, Business Partnerships and Franchising Opportunities: Social Value, Market, Sustainability 17 Thursday, November 25, 2010 17
  • 18. Opportunity Assessment High Most Attractive Mission Fit Low Least Attractive Low High Demand - Need/Desire 18 Thursday, November 25, 2010 18
  • 19. Screening Ideas Preparation Generating ideas - brainstorming is vital activity Quick screening Second screening of ideas Feasibility study Use Scorecard from www.enterprisingnonprofits.ca 19 Thursday, November 25, 2010 19
  • 20. 10 Questions - enp Guide (1) Where is your venture now? (2) What is your product or service? (3) What is your market? (4) How will you reach your market? (5) Against whom will you be competing? 20 Thursday, November 25, 2010 20
  • 21. 10 Questions - enp Guide (6) How will the product be produced the service offered? (7) Who is to be involved? (8) What are your financial projections and how much money do you need? (9) What are the risks? (10) What is the social return on investment and how will it be measured? 21 Thursday, November 25, 2010 21
  • 22. Business Plan - Elements Executive Summary Market Opportunity Business Model Operational & Managerial Processes Social and Environmental Outcomes Financial Statements & Projections 22 Thursday, November 25, 2010 22
  • 23. Measure Impact What gets measured gets Done Use Demonstrating Value Dashboard Determine what you know and want to show Available at www.demonstratingvalue.org 23 Thursday, November 25, 2010 23
  • 24. Challenges There are many, many, & still more challenges! 24 Thursday, November 25, 2010 24
  • 25. Social Challenges Staying on mission Appreciating small and significant wins Finding the right talent for the enterprise manager Measuring social impact 25 Thursday, November 25, 2010 25
  • 26. Business Challenges Finding business opportunities that address customer wants/needs that are married to mission Managing costs Marketing expertise and strategy Making money - and in a timely way 26 Thursday, November 25, 2010 26
  • 27. Environmental Challenges Creating a green culture Assessing the economic and social costs of being green Integrating the environmental bottom line 27 Thursday, November 25, 2010 27
  • 28. Thank you! 28 Thursday, November 25, 2010 28
  • 29. References & Resources Alter, K. (2007) Social Enterprise Typology, Virtue Ventures Inc. Quarter, J., L. Mook and A. Armstrong (2009) The Social Economy - A Canadian Perspective, Toronto: UTP. Social Enterprises’ Analytical Model, Chantier de l’économie sociale. The Canadian Social Enterprise Guide, 2nd edition, www.enterprisingnonprofits.ca - free and fabulous download 29 Thursday, November 25, 2010 29