The Social Enterprise Model and Employment

1. 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

2. Toronto Enterprise Fund 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.

3. What TEF does • 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)

4. What is a Social Enterprise? 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

5. TEF’s Social Enterprises Provide permanent connections to the labour market for marginalized populations through: • Permanent jobs in parallel businesses • Transitional jobs in linking businesses • Self-employment

6. TEF’s Portfolio

7. TEF’s Seed Funded Enterprises

8. TEF’s Statistics • 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

9. TEF’s Statistics - Housing 5% On the streets 24% In a shelter or transitional housing 17% In temporary, unsuitable or overcrowded housing 3% In hospital or prison 36% At risk of homelessness 15% Other Since Jan 2009: 3% Moved off the streets 11% Moved from shelters/transitional to independent 17% Moved to better conditions 10% Reduced % income paid on rent from >50% to <50% 13% Made other housing improvements

10. Four Key Considerations • Social enterprise is unlikely to free a nonprofit from all other types of revenue • Launching and running a social enterprise is as risky as launching and running a business • Social enterprise demands skill sets that a typical nonprofit may not have • Social enterprise has the added challenge of managing both mission and margin

11. Key Success Factors • Business activities fitting organizational culture • Knowing the industry • Treating the enterprise as a business • Hiring the right people • Setting realistic expectations • Improving financial literacy

12. The broader context Advocacy work: • Enhancing business skills • Expanding markets • Increasing access to capital • Raising awareness and demonstrating impact • Creating a supportive legislative framework