The broadest least contentious definition is that a Social Enterprise is a hybrid that combines social intent and the for profit business model. Enterprising Non-Profits chooses a more focussed definition: "Social enterprises are businesses operated by non-profits, with the dual purpose of generating income by selling a product or service in the marketplace and creating a social, environmental or cultural value." We're open to a variety of interpretations, but do insist on a balance of sustainable business practices, and measurable social returns.

SROI attempts to financially quantify social returns in standard, open manner. Like ROI (Return on Investment) in the business world, SROI attempts to be an open and easily understood yardstick in the social sector for making comparisons, benchmarking performance, quantifying success, and more.

"SROI aims to help organisations understand and manage the social, environmental and economic benefits (value) that they are creating. It is a measurement approach, developed from traditional cost-benefit analysis that captures the economic value of social benefits by translating social objectives into financial measures and focuses on the most important sources of value as defined by stakeholders.

An SROI analysis is the process of understanding, measuring and reporting on the social, environmental and economic value that is created by an organisation. An SROI ratio is a monetised measure of the social value that has been created, compared to the investment required to achieve that impact. It takes the financial concept of return on investment a step further by capturing social, economic, and environmental as well as financial value. For example, when a previously unemployed person completes a training programme and starts a new job, not only does she increase her personal income, but also she creates value for the Government by paying taxes and no longer claiming welfare benefits. Thus, the impacts of the training programme are both social and economic, the value of which SROI was designed to measure."
-From New Economics Foundation [Read More]

At the SEF we use SROI to help us evaluate programs, quantify success, and make financing decisions. However, its most important use is to help our partners improve their operations, promotion, and focus.

Look at the SEF as a bridge financier, willing to back higher risk ventures for the ultimate good of our community. We are, however, as determined as any lending institution to have each and every loan repaid within the agreed-upon terms. The long-term viability of the SEF depends on our loans being repaid. To ensure this occurs, we will use the same level of rigour as a bank in assessing the long-term viability of your business proposal.

The SEF offers loans for social and affordable housing projects for the same reason we offer loans to eligible social enterprise projects – to offer bridge, or transitional, financing through the start-up phase of a project. While Edmonton does have other social housing lending agencies, the SEF is unique in its flexible financial packages.

Sorry, the SEF only works with Edmonton NFPs. However, we encourage you to form a partnership with a registered not-for-profit organization who can take the idea forward. It serves the best interests of our entire community if ideas that help our disadvantaged residents can be implemented.

That depends on the readiness of your organization to move your idea forward. The process will move quickly if your organization is ready to make the transition in thinking to an entrepreneurial culture. Some organizations take months to prepare themselves for the shift in operating emphasis.

After that stage, organizations must be prepared for the hard work of developing your social enterprise idea. The SEF will work with you at every phase to help you develop a business plan, complete with documentation, records and other materials you need to prepare your case for our review. The review and approval process will be longer if you need to do more work to prepare your case.

Every opportunity is unique, so it is best to talk to us specifically about your organization and your social enterprise idea, after which we will help you map out a timeline and your requirements.

A social enterprise blends the values of social benefit with a sustainable business enterprise. The two components are equally important in a successful social enterprise.