Social Enterprise Access to Government SME Services: Challenges and Opportunities (2011)

Enp's recently completed research on social enterprise (SE) access to Federal, Provincial, and Territorial (F/P/T) funded services for small and medium enterprise (SME) provides clear evidence that the current gaps and barriers are by far a lack of clarity and ambiguity, while only in a very few cases due to specific regulatory restraints. In over 90% of the 100 programs we researched, actual access to the programs is unclear, ambiguous, or perceived as inaccessible from both the perspective of the service provider and the service seeker. While the research findings pose real challenges, opportunity lies in the fact that some strategic steps in delivery models and program content could dramatically improve access to SME services for social enterprises.

For the full report, click here. 

Click here for the Appendix Research Spreadsheet.

Three major categories of SE access to existing SME services emerged:

1. 5% of the sample programs state in their purpose or eligibility requirements a clear access for SE.
2. In 93% of the sample, ambiguity and confusion issues emerged. 55% of the total reviewed indicate that they are open to non-profits, but do not clarify how that relates to social enterprise. 38% of programs and services do not identify non-profits (or, therefore, SE) in their program description or eligibility criteria. The barriers created when SME services neglect to include details regarding non- profit and SE eligibility significantly restrict access. In these cases of "neglect and omission", it is questionable whether the service may or may not be accessible to non-profits and SEs.
3. 2% of SME programs and services reviewed were identified as specifically excluding non-profits. Although this represents a relatively small percentage of the total reviewed, the number may likely increase if the services with unclear or vague eligibility descriptions were clarified.

Challenge: Access to SME services for SE is in most cases unclear, ambiguous, or perceived as inaccessible.

Recommendations:

• Lessons must be taken from programs and services that support SE and their process and regulatory support replicated.
• Unclear services must clarify the definition of "non-profit" and eligibility requirements.
• SME services that have neglected non-profits in descriptions and requirements must define requirements and regulations with more detail, explicitly including social enterprises.
• In cases of denied access, changes must be made to eliminate exclusionary practices and regulations.

Challenge: An additional and critical challenge is that the existing SME services are not aligned with core elements of social enterprises: social enterprises operate in a non-profit or charitable structure and are focused on creating a ‘blended' return on investment, both financial and social.

Recommendation:

• It is necessary to enhance and adjust existing F/P/T programs and develop new services to meet the unique needs of social enterprises' blended value and non-share, non-profit structures.

A comprehensive, explicit and multi-stakeholder strategic plan to expand social enterprise access to SME services must clarify access, engage service providers, and fill service gaps to meet the needs of social enterprises.

Increasing access to the existing SME programs and filling existing service gaps will address key business development needs and strengthen social enterprises across Canada.

We invite your thoughts, comments and participation in moving forward on increasing social enterprise access to government funded SME programs and services.

The full report is available on the enp website.

Click here for the Appendix Research Spreadsheet.

The social enterprise (SE) access to F/P/T SME services research was conducted with support from Human Resources and Skills Development Canada (HRSDC). The research reviewed 100 F/P/T programs and conducted key stakeholder interviews.