Social economy organizations are often place based, providing local solutions to local problems.
Social economy organizations take many different forms, and exchange a multitude of different types of goods and/or services.
FOR PROFIT:
enterprising for- profits reinvest their profits in the operations and services of the business, rather than flowing back to an owner or investor. B Corps demonstrate high social and enivironmental performance.
NOT‐FOR‐PROFIT ORGANIZATION:
CO‐OPERATIVE ORGANIZATION:
CHARITABLE ORGANIZATION:
Buy Social Canada offers a national certification standard to social enterprises self-generating 51% or more of revenue from the sale of goods or services.
The Social Economy Hub does not offer provincial certification. However, those wishing to participate in the Social Impact Marketplace should meet the following criteria:
Is an ongoing business venture that sells a good and/or service
Is operated with a primary aim of achieving an environmental, social, and/or cultural impact OR the profits generated within the venture are directed to such impacts;
Is community-owned rather than privately owned.
Has at least one physical location in Canada, or ownership located in Canada
Are You Running a Social Enterprise?
One test for a non-profit or charity that believes it is operating a social enterprise: what are you selling?
It could be that you are operating with an entrepreneurial mindset within your organization, but if you are not selling a good or service into the marketplace, you aren’t running a business; you may be running a social program, but not a social enterprise
A test for a traditional for-profit business that believes it is operating a social enterprise: to what degree do profits flow back to the mission and beneficiaries?
If profit is paramount (and particularly if individual owners or shareholders are personally benefiting), you may be engaging in socially conscious purchasing or corporate social responsibility( a Beneficial Corporation – B Corp), rather than operating a social enterprise. (Source: BC Centre for Social Enterprise)
Buy Social Canada certifies social enterprises based on a minimum of 51% of profits being reinvested back into the social, environmental or cultural mission.
Social Entrepreneurs: Beneficial Corporations (B Corps)
Generally speaking, social entrepreneurs are not social enterprises but they play an important role in the social economy.
Social purpose entrepreneurs are individuals who create innovative solutions to address social and environmental challenges, while social enterprises generate revenue through their products or services to create positive social impact.
These two entities often collaborate and support each other in order to achieve their shared mission of creating positive change in society. Find out more about B Corps here.
It is important to note that in Canada, there are no universally agreed upon definitions for social enterprise nor legislated legal structure.
