Regulatory Framework

Beyond the market success, the financing and resources required, and the skill present to create, grow, and sustain strong social enterprises there is a body of work that greatly shapes the ability of social enterprises to do their work. The actions, decisions, and policies of all levels of government have significant impacts on social enterprises in Canada. 

This is why public policy matters. It can enable or restrict access to capital, it can prioritize or block out markets and purchasing options from social enterprises, it can determine whether or not existing government related business development resources are available to social enterprises, it can determine whether or not social enterprises are even part of the discourse in this country from a government perspective.

Policy may not make or break a social enterprise, but in looking at different policy environments around the world, it become very clear that governments have a very important role in creating an enabling environment for social enterprises, and therefore for the social, economic, and ecological impacts that they contribute to our country.

In part, there is little support because social enterprises are not well understood in governments. What is understood is the charitable model, but social enterprises often look and act too much like a business to get that support. What is also understood is the private for-profit model, and there are supports for that model, but social enterprises are perceived to be too charitable to access those resources and supports from governments. So while social enterprises accomplish blended value through blended actions in a blended model, they often struggle to gain access to any government supports because of this dynamic.

What needs to be recognized is the full value of social enterprises to our communities, our economy, and our environment. And along with this demonstrated and recognized value, governments need to ensure that social enterprises have access to the full range of supports available to other businesses and charities, and explore niche policies and programs that support the specific needs of social enterprises. The result will be reduced poverty, healthier communities, and more fair economies.