Reasons for Starting A Social Enterprise

Reasons for Starting A Social Enterprise 

There are many different reasons why non-profits think about starting a social enterprise. They range from the purely financial to purely mission-based. Most often they are some combination of the two.

There are three primary reasons to develop and operate a social enterprise:

1. Fill a need the market will never meet on its own, such as employment for marginalized communities. Examples of this type of social enterprise include Potluck Catering creating employment in Vancouver's Downtown Eastside, The Right Stuff providing employment for youth at risk in a rural community, and the Cleaning Solution, a commercial janitorial service employing mental health consumers.
2. Provide an opportunity to advance mission, particularly in areas of cultural and environmental activities. Examples of this type of social enterprise include: Modo The Car Co-op which provides car sharing in the Lower Mainland, Glendale Gardens in Victoria, and Strathcona Dental Clinic delivering dental care to low income youth and seniors in Vancouver's inner city.
3. Enhance the organization's financial sustainability through the generation of profits that flow to a social purpose. Examples of this type of social enterprise include: Penny Lane, a thrift store whose profits support youth services and Atira Property Management, a for-profit property management service owned by Atira Women's Resources.

Often, a social enterprise will have components of all three of these factors, but will identify one leading purpose for the social enterprise. You may also go to the Marketplace for a broader view of a full view of the diversity of social enterprise products and services.