Social Economy Program for Ontario

In the October 5, 2004 Speech from the Throne, the Government of Canada confirmed the importance it places on the social economy and volunteer-based organizations in this country. A formal commitment was announced to foster the development of this sector by creating the conditions for success and an environment favourable to their growth.

A backgrounder has been prepared to provide more detail on the history of this decision and the broad parameters of the funding support announced. In short, the Federal Government approved a national funding program that would be delivered regionally and designed to reflect local priorities and needs.

In Ontario, the Federal Government’s decision authorized Industry Canada/FedNor to:

1. implement targeted pilot programs in support of projects which build community capacity for social economy activities ($5.95 million over two years); and
2. develop initiatives to increase lending to social economy enterprises and/or to establish a Patient Capital Demonstration Fund ($33 million over five years).

Industry Canada/FedNor has been moving forward on this initiative. In January 2005, a consultative Roundtable discussion on the Social Economy was held in Toronto attended by representatives of 39 broad based organizations in addition to 40 responses to an online consultation. The list of Roundtable participant organizations can be viewed here while the report from the consultation is posted here (PDF - 167 kb).

As a result of these consultations, Industry Canada/FedNor developed the Social Economy Program for Ontario (SEPO) and received approval of the Federal Government’s Treasury Board for this approach on May 16th, 2005.

Next Steps

Delivery of the Patient Capital Demonstration Fund will be by third party, to be selected through a competitive process.

Industry Canada/FedNor may supplement its existing infrastructure by delivering the Capacity Building Initiative via third party (or parties) in southern urban centres, also to be selected through a competitive process.

A smaller working group, made up largely of participants in the January Roundtable session, has been struck to provide ongoing advice and input. Specifically, we have received input from the Working Group on:

• structure and delivery requirements for a Patient Capital Demonstration Fund which informed our Invitation for Proposals; and
• structure, delivery requirements, and launch of the Capacity Building initiative.

The Working Group will also provide ongoing feedback on the effectiveness of the programs as structured.