Ontario improving employment opportunities for people facing barriers
Ontario is partnering with leading financial institutions to build on Social Capital Partners existing loan program and create a fund aimed at increasing employment opportunities for people facing employment barriers.
“This pilot is a win-win scenario. It will help disadvantaged job seekers find opportunities for meaningful employment and connect small businesses with attractive financing terms and motivated employees. Together, we can create a culture of inclusion in our workplaces and a next generation economy for our province.”
Partnership council on employment oportunities for people with disabilities
Canada’s ability to compete internationally is predicated on its ability to innovate, to create and enhance the productivity of its businesses. As an engine for growth and employment, small businesses must expand the talent pool upon which they rely to include university and college-educated people with disabilities who are ready, willing and able to help them compete.
Social Capital Partners and Ontario Government to begin consultations with Canadian financial institutions for a Community Loan Pilot Project
TORONTO, Nov. 7, 2014 – Social Capital Partners is pleased to announce an innovative collaboration with the Government of Ontario designed to explore a novel social finance approach that provides employment opportunities for people with disabilities and other vulnerable populations.
In the coming weeks, consultations with Canadian financial institutions will explore ways to scale the Community Loans Pilot Project.
This approach is based on the past success of Social Capital Partner’s Community Employment Loan Program which has facilitated loans to business owners of franchises in more than 60 locations who have committed to hiring those at a disadvantage. The interest rates of the loans are directly linked to the desired social outcome: for every employee hired from a community agency partner, the interest rate on the loan decreases. Such financing attracts communityminded business owners who have entry level positions with the potential for career growth and advancement. It’s a win-win scenario: disadvantaged job seekers are offered opportunities for meaningful employment while small businesses gain access to attractive financing terms and motivated employees.
With support provided by the Government of Ontario, Social Capital Partners worked with Deloitte to complete a feasibility study of how a program like this could be scaled. The study concluded that by offering an interest rate incentive to small and medium sized enterprises that implement a community hiring program savings would be realized by the reduction of other government support costs.
The study concluded that this financing scheme is an untapped opportunity to provide job opportunities to disadvantaged groups. The study is available on the SCP website www.socialcapitalpartners.ca.
The government and Social Capital Partners will now begin consultations to refine the design with the goal of implementing a pilot to test the model in the near future.
“Ontario is pleased to work with Social Capital Partners to start consulting with Canada’s leading financial institutions to help scale up the Community Loans Pilot. This program is a great example of an innovative solution that improves employment opportunities for persons with disabilities and others facing employment barriers, and helps them become active participants in the workforce.”
– Brad Duguid, Minister of Economic Development, Employment and Infrastructure
“We are excited to work with the Ministry of Economic Development, Employment and Infrastructure to take our existing Community Loan Program to the next level, working closely with both bank and community partners. We view this as an important step to expand the use of community employment practices by Canadian business owners, helping to facilitate employment access to countless job seekers who face added obstacles in finding work. We believe this is a prime example of how social finance can be leveraged to engage the private sector and generate win-win solutions.”
– Bill Young, Founder and President of Social Capital Partners
“We view this as an important step to expand the use of
community employment practices by Canadian business owners, helping to facilitate employment access to countless job seekers who face added obstacles in finding work. We believe this is a prime example of how social finance can be leveraged to engage the private sector and generate win-win solutions.”
Social Capital Partners’ collaboration with the Ontario Ministry of Economic Development, Trade and Employment
TORONTO, Mar. 18, 2014 – Social Capital Partners (SCP) and the Ontario government’s Office of Social Enterprise are collaborating to explore a pay-for-performance model that will increase access to employment opportunities for persons with disabilities, new Canadians and other traditionally disadvantaged groups. With support from the Ontario Ministry of Economic Development, Trade and Employment, SCP will conduct a feasibility study commencing this spring. Based on the findings from the study, the expected outcome will be the implementation of a pilot in partnership with one or more Canadian bank lenders.
The concept for this new social finance initiative has emerged as an extension of SCP’s current work. Through the Community Employment Loan Program launched in 2006, SCP facilitates access to financing for entrepreneurs and franchisees who commit to hiring individuals at a disadvantage in securing work. The terms of these Community Employment Loans are directly linked to outcomes: for every employee a business owner hires and retains from one of SCP’s community partners, the interest rate on the loan decreases.
Building upon this work, SCP is partnering with the Ontario government to develop the next phase – a modified new model that has significant potential for scale because it would be delivered, in part, through bank branches in local communities. The idea is to adapt the key features of the Community Employment Loan – namely financing terms that improve based on employment retention outcomes – and make them available to every small business owner and entrepreneur taking on a small business loan. This transition, which entails the integration of a social finance tool into a mainstream financial institution offering, is pivotal to achieve true scale.
The five critical factors of social enterprise profitability
Simply put, our advice is to do everything possible to choose businesses that are not overly complex to operate and to build management teams that have the inherent business capacity to operate them effectively.
Working together: Implementing a demand-led employment and training system
“The cost of our system’s supply-demand mismatch is substantial. Provinces are requiring an increasing amount of funding for social assistance programs. These program expenditures are growing at two or three times the rate of economic growth in many provinces. More efficient and demand-driven employment services could lower this return rate and generate significant tax savings for government.”
A Fine Balance: What Inner City Renovations taught us about managing social and economic objectives inside 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.”
Social return on investment report: TurnAround Couriers
“90% of the target population recruited from shelters was able to secure independent housing within six months of employment, representing approximately $162,066 savings in shelter costs over a six-year period.”