How Social Enterprises Make a Difference in Newfoundland and Labrador

Welcome back to our "Navigating Beyond Our Horizon" series, where we explore important topics that challenge and inspire growth within Social Purpose Organizations (SPOs). In this series, we’ve delved into various aspects of innovation and leadership that are essential for driving meaningful change. Today, we turn our focus to one of the drivers of community development—social enterprises. 

Imagine living in a small town in Newfoundland and Labrador, where the local economy has been struggling for years. Jobs are scarce, young people are leaving to find opportunities elsewhere, and the rich cultural heritage of the community is at risk of fading away. Now, imagine a local business that steps in to address these challenges, creating jobs, preserving traditions, and bringing new life to the area. This is the power of social enterprises—businesses that are not just about making money, but about making a difference. 

Social enterprises are unique in that they blend the best of both worlds: the entrepreneurial spirit of traditional businesses and the mission-driven focus of nonprofits. They exist to tackle social, environmental, and cultural issues within their communities, using innovative business models that generate income and reinvest profits back into their cause. In Newfoundland and Labrador, where communities often face unique and complex challenges, social enterprises are playing a crucial role in building a more sustainable and resilient future. 

In today’s blog, we’ll explore the significant impact that social enterprises have on communities across Newfoundland and Labrador. We’ll look at how these enterprises are boosting local economies, empowering marginalized groups, preserving cultural heritage, and leading the way in environmental sustainability. Whether you’re already familiar with social enterprises or just starting to learn about them, this exploration will offer valuable insights into how these organizations are helping to shape the future of our province. 

What Are Social Enterprises? 

First of all, let’s define the term "Social Enterprise." According to Buy Social Canada and the Social Enterprise Council of Canada, a social enterprise is a business that sells goods or services with the primary aim of creating a social, environmental, or cultural impact. While traditional businesses focus solely on maximizing profit, social enterprises reinvest the majority of their profits into their mission to benefit their community. 

In Newfoundland and Labrador, social enterprises often address local challenges such as preserving cultural heritage, supporting rural communities, or promoting sustainable practices. They create community capital by using their profits to generate positive change, whether that means creating jobs, maintaining essential services, or helping protect the environment. 

Significant Impact of Social Enterprises 

1. Helping the Local Economy 

One of the biggest ways social enterprises help is by creating jobs, especially in areas where there aren’t many. By providing employment, they give people a reason to stay in their communities rather than moving away to find work. This keeps communities alive and thriving. In addition to creating jobs, social enterprises often help maintain essential services within communities, which can be critical, especially when transportation options are limited. Whether it’s healthcare, childcare, or access to fresh food, these services are vital to ensuring that people can live and work in rural or underserved areas without having to travel long distances. 

Example: Lunar Inn, Located in the charming Quidi Vidi neighbourhood and run by an experienced, knowledgeable organization First Light with the best interests of Indigenous people in mind – the Lunar Inn offers temporary accommodations to clients visiting St. John’s for medical reasons.      

2. Making a Social and Cultural Impact 

Social enterprises do more than just boost the economy—they also tackle social issues and help preserve the unique culture of Newfoundland and Labrador. For example, some social enterprises work to empower groups of people who might otherwise be left out, like Indigenous communities or people with disabilities. They provide opportunities for these groups to learn new skills, gain confidence, and contribute to society. 

Social enterprises also help keep local traditions alive. For instance, a business might focus on producing traditional crafts or promoting local music, ensuring that these cultural practices continue for future generations. 

Example: The St. John’s Farmers’ Market is more than just a place to buy fresh, local produce. It operates as a social enterprise that supports local farmers, artisans, and vendors while fostering community connection. The market provides a platform for newcomers, Indigenous communities, and individuals from marginalized groups to sell their products, develop business skills, and share their cultural heritage through food and crafts. This helps preserve local traditions while creating economic opportunities for these communities. 

3. Protecting the Environment 

In a place as beautiful as Newfoundland and Labrador, protecting the environment is crucial. Social enterprises here are leading the way by adopting eco-friendly practices. They might use sustainable materials, reduce waste, or promote renewable energy, all while running their businesses. 

Example: Some social enterprises focus on renewable energy, providing clean and affordable power to communities. Others might organize beach cleanups or promote sustainable fishing to preserve the natural beauty and resources of the region. One great example is Rethink Waste NL, which champions environmental sustainability through programs like the Green Depot, making a positive impact on waste reduction and recycling efforts. 

Another example to consider is Evergreen Recycling, which also contributes to a greener future by providing accessible recycling services and encouraging responsible waste management.  

Challenges and Opportunities 

Running a social enterprise isn’t easy. One of the biggest challenges is securing sufficient funding to launch and sustain operations. Since these businesses prioritize social impact over high profits, they often face difficulties attracting traditional investors. Another hurdle is balancing the mission to do good with the need to maintain financial stability, which can limit growth. 

However, there are significant opportunities ahead. As more people seek to support businesses that prioritize purpose over profit, social enterprises are well-positioned to attract customers and investors who align with their values. 

To dive deeper into what social enterprises are and how they’re making a difference, visit Buy Social Canada and download their recently launched Guide to Social Enterprise. 

The Future of Social Enterprises in Newfoundland and Labrador 

The future looks bright for social enterprises in Newfoundland and Labrador. Technology is helping these businesses reach more people and measure their impact more effectively. Plus, as more people recognize the importance of supporting local and sustainable businesses, social enterprises have a real chance to grow and make an even bigger difference. 

What You Can Do: You can help by supporting social enterprises in your community—whether that’s buying their products, spreading the word, or even starting your own social enterprise. Every little bit helps make Newfoundland and Labrador a better place for everyone. 

In summary, social enterprises are making a remarkable difference in Newfoundland and Labrador. They’re creating jobs, improving lives, protecting the environment, and preserving local culture. Their impact is substantial, and as they continue to grow, they’ll contribute even more to the strength of our communities. Let's support these businesses and the incredible work they’re doing to build a brighter future for everyone. 

To learn more about social enterprises and how they’re shaping our communities, visit the Social Innovation Lab and explore the social innovation landscape in Newfoundland and Labrador. 

Catherine Iheme, MBA

Social Enterprise Analyst, CSCNL