The entrepreneurial side of social innovation

What does the term “social innovation” bring to mind?

International NGOs. Smart cities. Accessibility. Social innovation may be a trending term, but it’s a long time business in Quebec, with over 200,000 employees working in social economy. These people and companies work to build solutions to social problems, piecing together the puzzle that is our society in a new, more equitable manner.

Social issues are often the result of a shortcoming in a network of multiple structures. People, governments, laws and economy interact to weave the fabric of our society. In order to address social problems, such as inequality, the system needs to be broken down into specific parts, with a goal of isolating the smallest part of the problem, and addressing it directly. Whether it’s giving people access to accessible healthcare, or creating a support system for others working to make a change, social entrepreneurs are finding ways to make changes that ripple.

Ashoka Canada is an example of this — a company that looks to create a network for social entrepreneurs to provide them with resources and connections in order to realize the change they envision. Where once it may have been difficult for a social entrepreneur to access funding, or assess the viability of their business, or simply get a team together, Ashoka provides a possible solution. In doing so, they place their piece in the puzzle of change, and lay the groundwork for others to successfully do the same.

Behind every social change is the machinations of a business, giving the innovation room to breathe. Entrepreneurship is crucial to social innovation, and it’s the backbone to any success story. Once you’ve assessed the social value of your idea, Ashoka’s Danica Straith suggests, it’s time to “layer in the business.” With a deep understanding of what you’re trying to change, and a solid concept for how you can achieve that change, solutions will come into place, and the business aspect of the puzzle will be easier to conceive.

It’s important to keep in mind that social innovation is distinctly social first, business second. For Marc-André Roberge of Nectar, this was the key question that needed to be answered. Nectar provides beekeepers with insights to how their bees are feeling, what they’re doing, and how they could be doing better. Marc-André was at first unsure about whether or not his startup was actually a social enterprise, stating that he simply thought he was “fulfilling a need.” By bringing this tech to beekeepers, Nectar was able to isolate a smaller issue — beekeepers were relying on pure intuition, and they weren’t able to accurately monitor the health of their bees, which affected their potential production. By doing this, Nectar hopes to generate a larger impact that can eventually contribute to the growth of the global food supply.

Danica describes this thought process as falling in love with the problem. It’s difficult to figure a way forward when you’re looking at every piece of the puzzle at once. However, by focusing in on what you see as your barriers, your solution can start to take shape. Questions can be answered: will the business go the route of a for or non-profit? What will the scale of things be? Where will you find the resources to build a prototype? With a mission driving you, the decisions you need to make will seem easier to fathom, as the mission will always come first.

Choosing the financial pathway is often a difficult discussion. While many believe that a social enterprise is usually a non-profit enterprise, this is often not the case. Businesses that operate as for-profit might find that they are able to fulfill their mission faster, at a better grade, if the fit is right. For non-profits, it takes time to see the returns on an investment, but it’s still a business, and things must be kept afloat in order to continue servicing the mission.

As Nathan Dahbi of Ma Mobiclinique notes, it’s important to always consider the future as a non-profit. Taking on investors for them requires a long-term commitment, because they need to have support year after year in order to continue providing the social value they envision. For a company focused on providing accessibility to healthcare, it’s clear that letting the vision die out is not an option. They need to retain access to the resources they need to run their business, and continue to provide the value that their company promises.

This is where networks come into play, forming the last, and perhaps most crucial, obstacle to overcome in social innovation. Ashoka knows this best, and their entrepreneurs and programs operate in both the for and non-profit sectors. By having access to a network, entrepreneurs gain the ability to tap into funding, to meet like minded people who might be able to help out, and to find those with expertise who could widen the impact of an idea.

District 3 itself offers a network to the budding entrepreneur, with coaches like Julie Hammel sharing her industry expertise in social innovation and social economy. Julie helps startups navigate the landscape of social innovation, and guides them in finding what their social impact might be. District 3 startups like Second Life and Aifred embody this, picking apart larger social issues to laser in on what is changeable. Residency program participants get the chance to work with these companies, getting a first-hand look into how these companies operate, but also gaining a chance to participate in the exciting social impact of these projects.

It all starts with an entrepreneur, and a vision. By “walking the talk,” as Jean-Philippe Couture of Ma Mobiclinique suggests, you’ll find others become interested in your talk as well. Armed with knowledge, resources and a specific understanding of how your idea fits into the complex systems that govern us, the social enterprise becomes a conceivable reality. Now all that’s left is to take action.

Related posts:

We have a fast growing garden seed company — with a social mission to give back. One of the questions we get asked often is — “are your seeds organic?” This article address that very question. Stupid…