An excellent report was recently released on access to capital for social enterprises and nonprofits in Ontario and Quebec by the Social Economy Centre at the University of Toronto. The project on Comparison of Policy Frameworks for Social Enterprises and Non-Profits in Ontario and Quebec is part of the Community-University Research Alliance for Southern Ontario's Social Economy.

The report begins with a contextual comparison of Ontario and Quebec, noting that there are significant historical and socio-political contextual differences between the two provinces which are reflected in the relationship of social enterprises with government and to society-at-large. The report then profiles the access to three distinct forms of capital in Ontario and Quebec - development capital, solidarity finance, and state finance.

(an excerpt from the introduction)

Summary 
What then, can be summarized from this brief overview of access to capital for nonprofits and social enterprises in Ontario and Quebec? The contextual differences certainly highlight the important of taking history into account when looking at the existence or absence of support for nonprofits and social enterprises.

Quebec: Robust financial and policy infrastructure 
The capital infrastructure in Quebec is not only more robust than the infrastructure in Ontario; it forms a financial ladder to increasing levels of financial support for nonprofits and social enterprises.  For example, Local Development Centres (LDCs) and the Réseau d'investissement social du Québec (RISQ) provide funds up to $50,000, while the FilAction  supports social enterprises with funds in excess of $250,000. What is equally important is the political and policy support which reinforces this financial infrastructure.

Ontario: Snakes and ladders 
The picture in Ontario could be described as a game of snakes and ladders. Initial start-up funds for dedicated purposes are available from some funders while others cater to a more sophisticated and mature clientele. In many more cases there is uncertainty about where to turn for support and if initial funding can be replaced or repeated. Funding instruments in Ontario do not foster sustained growth through start-up, growth and maturation phases of development and broad political support for social enterprises within the provincial government, private sector, or among unions is largely absent.

Opportunities for growth 
In Quebec, there is work very creative work underway to address the long-term financial needs of social enterprises. The Fiducie, for example, is working on the development of a secondary market, a "social stock exchange", designed to respond to Quebec's social enterprise needs and unique circumstances.

There are a number of potential strategies which may be beneficial to the development of capital for nonprofits and social enterprises in Ontario:

• Dedicated funds: Lobby for existing large pools of capital, (e.g.  the Ontario Trillium Foundation) and community economic development funds (e.g. Eastern Ontario Development Fund, Community Futures Program), to dedicate resources for social enterprise incubation, start-up and development.
• Pooled Funds: Use existing capital pools to invite increased investment by credit unions for example, to minimize risk and increase availability.
• Sector Funds: Create a vehicle to act as an investment by governments, private sector organizations and credit unions in social enterprises such as is the case with the Réseau d'investissement social du Québec (RISQ) and ENP-Toronto.

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