This white paper was prepared by MaRS and Ogilvy Renault LLP with the primary objective to increase capital directed at the community for delivering social and/or environmental benefits and two secondary objectives, to simplify and clarify the legal structures and permitted activities by creating a new form of legal vehicle and to provide a brand for social enterprise, social finance and community benefit, thus providing legitimacy and enhanced profile for such activities.
Public Policy
Wednesday's Federal Government Throne Speech contained a few paragraphs of 'social innovation' language for the first time. This is a welcome political blessing to the social entrepreneurs inside and outside government.
As I read the text I note an acknowledgment of: Canadian communities as incubators of creativity; the importance of working across sectors and boundaries; reducing red tape so that government can support local creativity; and providing expertise to scale up good ideas. Finally, the Throne Speech ends with a commitment to partner with innovative charities and forward thinking businesses to tackle social problems.
MaRS has recently launched a White Paper on Legislative Innovation that is proposing that Ontario create a new legal form to hold activities that would be undertaken by what we would call a social enterprise or perhaps a social purpose business. They are using the term Community Enterprise. This is builds on Stacey Corriveau and Richard Bridge's piece on Legislative Innovation for Canada.
These are both important contributions to a conversation that continues to emerge in this country. However, before we come up with a new legal form, I think that it is worth looking at the forces at play that would make one want to put so much time into this space. I guess that there is a part of me that would love to see all of this energy actually put into creating social enterprises. Perhaps this is an enabling condition. I guess that this is the question.
About 18 months ago after winding up activities with a technology venture capital fund, I had that “AH-HA!” moment that so many of my friends and colleagues have described, but I had yet to experience. What was it?
I met the SiG@MaRS team and a number of the passionate and talented social entrepreneurs they support. I learned about the challenges entrepreneurs in this field face and was intrigued by fact that while most social ventures require less capital than technology businesses and generally have a lower risk profile, capital is in very short supply. This is particularly true in Canada where most of us, including me before I was enlightened, assume that the government or charitable donors provide adequate funding for this sector.
There have recently been significant inroads made in creating new sources of financing for non-profits and social ventures in Canada. Causeway, a program of Social Innovation Generation (SiG) and an organization incubated at MaRS in Toronto committed to catalyzing the social finance marketplace, hosted two discussions over the past month to flesh out the development of potential investment vehicles.
In this discussion I will provide context for these conversations and offer resources for further understanding. I will continue to use this blog platform to chronicle the main developments of these funds in an attempt to keep you and the mounting number of social financiers up-to-date.
Michael Lewkowitz on A Community Enterprise Corp for Ontario? A Response
Mar 09, 2010