What are reasonable profitability targets for a social enterprise start-up with a mission to create employment for disadvantaged populations? How does external financing play a role in the execution of the social mission and how does a social mission as a key part of the business model impact the ability to reach profitability targets? SCP showcases one of our early investments and highlights key learnings about the inherent mission tensions in these business models.
“We knew that in order to understand the “blended value” (social and financial) of these kinds of investments, we would need a different kind of measurement tool to help us and our portfolio organizations understand their unique value creation – a Social Return on Investment.”
Share with a friend
Related reading
Watch the video: EOTs in Canada – a new succession option for business owners with Jon Shell
In this episode of the Moolala: Money Made Simple podcast, Jon Shell joins Bruce Sellery to explain how employee ownership trusts (EOTs) work and why they could reshape business ownership in Canada. They discuss what employee ownership means and how it works, the purpose of the new Employee Ownership Research Initiative, current research gaps around employee-owned businesses and how employee ownership has evolved in Canada in recent years. The conversation explores how employee ownership could support business succession, strengthen workplaces and create new pathways for shared prosperity.
Watch the video: The risks and benefits of opening up private markets to everyday investors
The Ontario Securities Commission wants to give retail investors access to private markets. But as Rachel Wasserman tells BNN Bloomberg, when you look closely, it starts to look less like democratization and more like offloading risk onto people with the least power to absorb it. Private equity is already underperforming S&P index funds over 1, 5 and 10-year periods and PE's biggest historical champions are quietly reducing their exposure. This proposal to offer retail investors access to PE stands to benefit the asset managers and intermediaries, with everyday investors bearing the costs and risks. Financial inclusion does not mean broadening access to financial products that sophisticated players are already walking away from.
Watch the video: Why do Canadians work so hard and get so little?
Low productivity means lower wages and a lower standard of living. Canada does need to boost productivity—but we keep trying the wrong things. Watch SCP CEO Matthew Mendelsohn explain the productivity conversation Canada actually needs to have.