At the back of an old renovated fire hall in downtown Toronto, Darnelle Cain is working on a print job for Scotia Capital – and a future in graphic communications. Cain, 29, is a participant of the Phoenix Printshop, a social enterprise of Eva’s Phoenix, a transitional housing facility with a mission of delivering housing and employment-related opportunities for homeless and at-risk youth. Launched in 2002, the Printshop offers on-the-job training in graphic communications while providing commercial print services for a range of corporate clients. “We saw that the graphics communication industry was crying out for young people and that there were really interesting positions available in the field,” explains Andrew Macdonald, manager of social enterprise at Eva’s Phoenix. As the need for financial resiliency grew, starting a print shop seemed like a great way for the organization to bring in alternative sources of revenue and still stay true to its mission. Forty participants have already enrolled in the five-month program and Cain, who recently landed a job in the industry, credits the enterprise with giving him “a good start in life.”

The growing trend toward social enterprise

The Printshop is an illustration of a growing trend toward social enterprises among Canadian nonprofits, as they find new and innovative ways to diversify their revenue streams and lessen their reliance on government and other funding sources. But the concept of using business models to meet social mission needs is not new, states Shelley Williams, author of Social Enterprise: The Three P’s: Philosophy, Process and Practicalities, which she wrote as a fellow of The Muttart Foundation. Citing the YMCA and hospitals, Williams, who is also executive director of the Bissel Centre, explains that social enterprising has been around for hundreds of years. However, she adds, “with the increasing pressure for organizations to do a revenue dance” these ventures are on the rise.

The dance for Patty Morris began in 1993 when the Alberta government implemented cuts to social funding. As executive director of the Developmental Disabilities Resource Centre of Calgary (DDRC), a 53-year-old charitable organization dedicated to providing direct services to people with developmental disabilities and their families, the fallout hit her and the organization hard. “That was an instrumental time in our history,” she recalls, “because, given the size of our agency, cuts were dramatic for us.” Realizing how dependent DDRC was on funding and how significantly that reliance impacted their ability to provide much-needed services to their clients was all the impetus they needed toward the road of social enterprise. Though DDRC operated some ventures in the past, their two current ones – Bow Catering & Executive Gifts and In-Home Support Services – are bringing them closer to their goal of increased sustainability and independence. Moreover, the enterprises allow the organization to focus even more clearly on its original mission: helping those with disabilities integrate and live an ordinary life.

Not all ventures are spurred on by government funding cuts, however. In fact, for Janice Abbott, executive director of Atira, a nonprofit women’s anti-violence organization based in British Columbia, initial discourse about social enterprising began at a time of increased support by the BC government. Rather, the creation of Atira Property Management in 2002 was a result of “a conscious decision to direct our energy into earned revenue as opposed to fundraising activities,” says Abbott, who is also CEO of the enterprise. Despite the tough market of property management, they had their first profitable month just 23 months after launching – an incredible feat for any business.

The motivators behind social enterprise

Independence and sustainability are often strong motivators behind social enterprises. Catherine Ludgate is director of IMPACS Communications Centre in Vancouver, a social enterprise that provides a full spectrum of communication services, training and support to charities and nonprofits across Canada. As capacity builders, IMPACS’ mission is to strengthen the nonprofit sector, enabling organizations to work more effectively. Their move towards enterprising came about in response to a perceived increase in work opportunities and a desire for more autonomy. “We wanted to be the captains of our own destiny,” states Ludgate. “We wanted to decide who we work with, where we are going to apply our time, and where we are going to get those resources.”

At other times, it is the client’s self-reliance that lies at the heart of a venture. Tumivut Earthkeepers of Toronto, initiated by Na-Me-Res, a temporary home for men, offers landscaping services and produces and sells culinary and traditionally native medicinal herbs. The business also provides homeless and native youth with a year of training toward becoming horticultural technicians. “We wanted to offer a solid pathway to economic self-sufficiency for the youth,” explains Pramilla Ramdahani, business development manager. “We decided to move our clients from continuously taking handouts to empowering them to take on real jobs in the real economy. Eventually we are hoping to train the youth to become entrepreneurs themselves.”

Negotiating a steep learning curve

Of course, the route to social enterprise does not come without its challenges. While many nonprofits boast tremendous passion, energy, and a vast array of innovative ideas, they often lack the skills and resources necessary to run a business. One liability lies in the traditional orientation of a nonprofit organization. As Williams cautions, “nonprofits have a tendency to think in terms of need and not of demand, but a business can only survive if a demand exists for the product or service they are offering.”

The lack of basic skills in marketing, commerce, and other areas related to business operations can prove to be challenging as well. Many nonprofit employees find themselves taking business courses at night just to keep up, and some look to external consultants and advisors to help guide them toward business success. “When we were starting out,” states Ludgate, “we didn’t know where to look. I am sure there were resources but we didn’t know how to find them. I spent time crying in my office, thinking ‘surely someone can help’.”

Andrew Macdonald considers his advisory board – comprised primarily of senior graphic communications professionals – as invaluable to the success of the Printshop. Another critical resource is an academic one. In May, graduates from the Rotman School of Management developed their own nonprofit group, Rotman Nexus, to provide consulting services for the sector. Liz McBeth, one of its founding members, attributes the establishment of Rotman Nexus to the growing number of students who are “looking for deeper meaning in the work they’re performing.” Presently, the group is working with seven organizations, including the Printshop and Tumivut Earthkeepers, and they expect that number to climb to 15 by the time the program ends in August.

With the rise of social ventures, resources and networks can’t be that far behind. Social enterprises may not be the right move for all organizations, but for those looking at alternative and innovative sources of revenue, the time seems ripe for enterprising towards attaining greater sustainability, self-reliance and mission success.

Elisa Birnbaum is a freelance print and broadcast journalist living in Toronto.