Mission, Profit or Employment: What’s the purpose of your social enterprise?
Does your social enterprise exist for a mission, employment or profit?
Whether a business or non-profit organization, social ventures are typically launched to address one or more of the following reasons and focuses:
Employment-based
Goal: To meet an employment need in the community that is not being met through traditional business models.
Employ people with barriers to employment OR democratize power/profit in the workplace.
Common examples include cafés, catering companies, translation services, recycling/e-waste centres, business with high labour needs, and worker co-ops.
For example, a printing company trains at-risk youth in the printing business, preparing them to leave the streets and enter the labour market.
Mission-based
Goal: To advance or achieve a specific environmental, social, and/or cultural mission.
Deliver products and/or services that help achieve the organization’s mission.
Common examples include farmers’ markets, car sharing, housing co-ops, renewable energy production, community theatres, food co-ops, co-op daycares, and credit unions.
For example, an education society operates an accredited university-level academic program that brings students to their community to learn about local First Nations culture and arts, as well as the unique biology in the local environment. In addition to student learning, there is an important local economic impact for the remote region.
Profit-based
Goal: To contribute to the financial sustainability of a community organization.
Raise funds for a community organization.
Common examples include thrift stores, museum and hospital gift shops, rental facilities, real estate, and YMCA/YWCA camps/gyms.
For example, a non-profit organization rents out the extra space in the building they own. The income from rent covers the mortgage payment and their program administrative costs.
Overall, the business model for a social enterprise is the channel that the social entrepreneur converts inputs into outcomes; the generation of both social value (measurable impact) and economic value (revenue).
How to incorporate your venture within Canada
Your social venture must carefully consider the current legal environment and existing legal structures and requirements associated with for-profit, not-for-profit, registered charities and co-operative corporations before you incorporate in Canada.
Your organization you should ask the following key questions:
What is the underlying nature and intent of the profit-making activities of your operation?
What will your operation’s profit be used for?
Regardless of which business structure you choose, you may consider applying for certification as a B Corp if you qualify.
If you’re looking for support with getting your organization up and running, from funding to content marketing, please reach out to us via the contact page.
