Social Innovation and Social Finance – Glossary
Social purpose organization
Social purpose organizations (SPOs) consist of various organizations with a mission to advance social or environmental objectives.
Social purpose organizations include:
- the charitable and non-profit sector (registered charities, incorporated non-profit organizations and non-profit co-operatives)
- the private sector (market sector co-operatives and private businesses advancing a social or environmental mission)
- hybrid entities such as Community Contribution Companies and Community Interest Companies, found in British Columbia and Nova Scotia respectively
Social innovation and social finance
Social innovation refers to new ideas, which, when adopted, improve a community’s wellbeing.
Social finance is the practice of making investments intended to create social or environmental impact in addition to financial returns.
The complex social, economic, and environmental challenges facing Canada (homelessness, climate change, and youth unemployment, amongst others) demand creativity and transformative solutions.
To take advantage of resources and opportunities made available by social innovation and social finance (SI/SF), social purpose organizations need to build their existing skill sets and develop new skills.
Social innovation and social finance ecosystem
Social innovation and social finance (SI/SF) ecosystems can either enable or inhibit the development of the SI/SF in Canada.
A strong ecosystem includes connections between:
- social purpose organizations (SPOs)
- networks
- experts
- social finance intermediaries
- researchers
- the government
A strong ecosystem makes it easier for SPOs to be socially innovative and to access social finance.
Readiness support partner
Readiness support partners (RSPs) establish open and transparent processes to make funding available up to SPOs across Canada. SPOs can apply for funds through readiness support partners to build their skills and capacity to access social finance.
Ecosystem builder
Ecosystem builders (EBs) invest in projects that help grow and strengthen the social innovation and social finance ecosystem.
Ecosystem builders will:
- support inclusive innovation
- strengthen networks of expertise
- conduct research and disseminate tools and knowledge
- invest in SPO capacity to participate in social procurement markets
- connect the IRP and broader SI/SF ecosystem
A strong ecosystem makes it easier for social purpose organizations to be socially innovative and to access social finance.