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The Social Enterprise Model and Employment

Presented by: Anne Jamieson, Senior Manager

Toronto Enterprise Fund

416-777-1444 ext. 513, ajamieson@uwgt.org

www.torontoenterprisefund.ca

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Funding Partnership of:• United Way Toronto• City of Toronto• Ontario Ministry of Community & Social Services• Homelessness Partnership Strategy, a federal

program administered by the City of Toronto

Goal:To be a leader in supporting the development and sustainability of social purpose enterprises that result in improved community involvement, economic participation, and quality of life for people who are socially marginalized.

Toronto Enterprise Fund

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• Grants:– Seed funding grants for new enterprises– Annual operating grants for existing enterprises

• Business development support– Workshops– Coaching and consulting– Technical assistance– Online resources, materials & tools– Social Enterprise Toronto (SET) network

• Research, evaluation and publications– Business of Inclusion (2004)– Doing Well While Doing Good (2008)– Coming soon: TEF Learnings (2013)

What TEF does

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A social enterprise is:

• a business

• operated by a non-profit

•selling goods or services in the market place

• for the dual purpose of generating income and achieving social, cultural and/or

environmental value

What is a Social Enterprise?

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TEF’s Social Enterprises

Provide permanent connections to the labour market for marginalized populations through:

1.Permanent jobs in parallel businesses

2.Transitional jobs in linking businesses

3.Self-employment

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TEF’s Portfolio

Enterprise Business Target Group TypeDelightfully Yours Catering Newcomer women TransitionalHawthorne Food & Drink Restaurant Newcomers Transitional

FreeGeekToronto Computer recyclingPsychiatric consumer/survivors

Permanent

Friends’ Catering Catering Homeless/at risk Transitional

Furniture Link Furniture pick-up & delivery

Homeless/at risk Permanent

Haween Enterprises Textile manufacturing Newcomer women TransitionalSelf-employment

Inspirations Studios Arts & crafts Women PermanentSelf-employment

Interpreter Services Toronto

Interpretation & translation

Newcomer womenPermanentSelf-employment

Out of This World Café Café & cateringPsychiatric consumer/survivors

Permanent

Parkdale Green Thumb Enterprises

Horticultural maintenancePsychiatric consumer/survivors.

Permanent

Phoenix Print Shop Printing Youth Transitional

The Silver Brush PaintingPsychiatric consumer /survivors

Permanent

Windfall Brides Bridal boutique Low income Transitional

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TEF’s Seed Funded Enterprises

Enterprise Business Target Group Type

2013 SEED FUNDING:

BlackBoard Marketing Marketing agency Youth Transitional

Carefirst Cleaning Residential cleaning Newcomers Transitional

Switchback Cycles Bicycle retail shopStreet-involved people

Permanent

ALUMNI:

St. John's Bakery Bakery homeless/at risk Permanent

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• 2012 total grants $828,000• 14 enterprises: $2.5 million in sales, $1 million in wages

to participants• 6 enterprises => 100% business cost recovery• 2,400 participants since 2000; 324 in 2012• 70% earned employment income in 2012• ability to pay bills quadruples over 6 months• 66% connected to permanent employment• 35% improved their housing (since 2000, 42%)• 80%+ better health, food security, self-confidence, and

connections to community

TEF’s Statistics

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TEF’s Statistics - Housing

5% On the streets24% In a shelter or transitional housing17% In temporary, unsuitable or overcrowded housing 3% In hospital or prison36% At risk of homelessness15% Other

Since Jan 2009: 3% Moved off the streets11% Moved from shelters/transitional to independent17% Moved to better conditions10% Reduced % income paid on rent from >50% to <50%13% Made other housing improvements

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Four Key Considerations

1. Social enterprise is unlikely to free a nonprofit from all other types of revenue

2. Launching and running a social enterprise is as risky as launching and running a business

3. Social enterprise demands skill sets that a typical nonprofit may not have

4. Social enterprise has the added challenge of managing both mission and margin

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1. Business activities fitting organizational culture

2. Knowing the industry

3. Treating the enterprise as a business

4. Hiring the right people

5. Setting realistic expectations

6. Improving financial literacy

Key Success Factors

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The broader context

Advocacy work:• Enhancing business skills• Expanding markets• Increasing access to capital• Raising awareness and demonstrating

impact• Creating a supportive legislative

framework