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Social Economy

What is the social economy?

The social economy is an entrepreneurial, not for profit sector that seeks to enhance the social, economic and environmental conditions of communities.

Separate from the private sector and government, the social economy includes co-operatives, foundations, credit unions, non-profit organizations, the voluntary sector, charities and social economy enterprises . They operate in sectors ranging from housing to communications and in areas such as recycling, home care, forestry cooperatives, restaurants, catering and manufacturing.

Social economy enterprises are a component of the social economy that are run like businesses, producing goods and services for the market economy, but manage their operations and redirect their surpluses in pursuit of social and environmental goals. Common objectives for social economy organizations include alleviating poverty, providing affordable housing, improving employment and economic opportunities, addressing environmental concerns and providing access to services and programs that can assist individuals and groups to improve their personal circumstances.

What's the WD connection:

Supporting the social economy contributes directly to WD's mandate to "promote the development and diversification of the economy of Western Canada..." because of the close links between economic and social goals. The department's focus on building sustainable communities acknowledges that sustainable communities are those that have strong economic and social environments.

WD has supported many initiatives with mutually supportive economic and social goals. Urban development agreements, community adjustment programs, and the urban aboriginal strategy are all examples of initiatives that address social and economic issues. WD has previously provided support to social economy organizations such as:

• Methy Construction & Maintenance Corp. – a community owned, non-profit corporation in La Loche, Saskatchewan that combines its construction business with economic development initiatives to provide training and employment opportunities for First Nations and Métis people.
• Urban Circle Training Centre Inc. – provides training and employment opportunities for Aboriginal people in Winnipeg in the fields of health care, computers, academic upgrading and college and university preparation. All the programs consist of life skills, cultural awareness, and work experience.
• The Social Purchasing Portal – a web-based portal that connects those who need office goods and services to suppliers who are committed to hiring residents from Vancouver's Downtown Eastside who are re-entering the workforce. The SPP is marketed to businesses in Vancouver's Downtown Eastside to engage further business participation and create greater supply chain transaction activity.

Industry Canada and the regional development agencies are responsible for the design and implementation of three social economy initiatives, listed below. Industry Canada is also responsible for a fourth initiative with the Social Sciences and Humanities Research Council. In Western Canada, WD will deliver capacity building and financing programs to social economy organizations, including social enterprises. WD will also look at ways for social economy organizations to increase their uptake of existing programs and services.

To benefit from input on program design and delivery, WD consulted with key stakeholders in each western province that either represent or work with the social economy sector and social enterprises in Western Canada.

What's been accomplished?

The Government of Canada first highlighted the social economy in the February 2004 Speech from the Throne, committing to support "the efforts of the people who are applying entrepreneurial creativity, not for profit, but rather to enhance the social and environmental conditions in our communities right across Canada." Federal Budget 2004 followed through on this commitment with four specific initiatives designed to support the social economy in Canada:

• Improving the access of social economy organizations to federal programs and services for businesses by changing eligibility requirements and improving awareness of available programs and services;
• Supporting capacity building in community and social economy organizations;
• Financing to seed new funding/loan programs to provide capital to social enterprises;
• Support for research on the social economy though the Social Sciences and Humanities Research Council

Work is currently ongoing to further develop these initiatives.

What's on the horizon?

WD is responsible for the design and delivery of new programs to support the social economy in Western Canada. To inform the development of these programs, WD consulted with social economy organizations across the West in early 2005. Social Economy Consultations in Western Canada: Summary Report provides an overview of some of the common findings.

Key contact:

Fiona Salkie
WD Headquarters
Edmonton, Alberta
Telephone: (780) 495-6882