Social Economy and First Nations Collective Entrepreneurship in Quebec

By Karine Awashish, Social Economy AdvisorWednesday, November 6, 2019Contact: Kawashish@cdepnql.org

Definition of Social Economy

Social Economy as defined by the Chantier de l’économie sociale:

https://keskec.ca/

• Serve the people or the collectivity;

• Ensure managerial autonomy;

• Incorporate a democratic decision-making process involving the members;

• Advocacy for the value of individuals and work over capital;

• Base activities on the principles of participation and individual and collective empowerment.

Definition of Social Economy

• A business model with an economic component and a social component

• An economic model…• Different / as an addition to the traditional models (private, public or parapublic);• Based on diverse social missions.

• For Indigenous People, it is among other things a tool of…• Empowerment;• Development for all the aspects of sectors in several areas of activity;• Enhancement of the culture, cultural heritage and First Nations creativity.

Historically …• Cooperation has kept the communities alive;

• The family unit forms the core of the communities’ social fabric;

• The notion of self-reliance and collective ownership is part of the traditional values;

• Economy is part of the ways and customs, facilitated by a network of exchanges that has existed for time immemorial;

• Colonization has contributed to a change in social structures in a negative way (loss of economic, cultural and social empowerment).

Social Economy and First Nations

« We are confident that social economy will be central to the development of our Nations »

AFNQL, 2006

• Social Economy Act;

• Indigenous entrepreneurship is the creation, management and development of new projects by Indigenous Peoples, and for their benefit;

• Having been founded at 51 % by First Nations;

• Being constituted at 51 % of First Nations members (owners);

• Promoting the hiring of First Nations members and preserving the culture, the language or the knowledge of at least one nation, and being deeply rooted in the territory.

Overview of Social Economy in First Nations Communities

Definition of Indigenous Social Economy

• It is an association of persons grouped in a democratic framework to ACHIEVE A COMMON OBJECTIVE TOGETHER.

and

• It is an enterprise that DEVELOPS ECONOMIC ACTIVITIES in a competitive market by producing and selling goods and services, with the aim of allowing the organization to fulfill its mission.

A Social economy enterprise is two entities in one

Notion of Collective Entrepreneurship

Non-profit organizations (NPOs) have :

• Members;

• A general assembly;

• A board of directors.

Associations are…

• Valid under part III of the Companies Act;

• Considered as a social economy enterprise IF market activities (different from a charitable organization).

The Associations (or NPOs)

Collective Entrepreneurshipand the Associations (NPOs)

A cooperative is a moral person, grouping of individuals, who have social and economic needs in common, and who, in order to satisfy these needs,

associate to operate a business according to the rules of cooperative action

5 types of cooperative…

Solidarity, Workers, Consumers, Producers and Self-employed, Shareholding-workers.

Collective Entrepreneurshipand the COOP Formula

Cooperatives

Solidarity Cooperative

Collective Entrepreneurship and the COOP Formula

The solidarity cooperative regroups at least two categories of members among the following:• User Members, meaning persons or corporations that use the services offered by the

cooperative;• Working Members, meaning legal persons involved within the cooperative;• Sustaining Members, meaning any other person or corporation that has an economic, social or

cultural interest in the objectives of the cooperative.

Established and composed of worker members, meaning legal persons involved within thecooperative.

Collective Entrepreneurship and the COOP Formula

Workers cooperative

Producers and consumers cooperative

Shareholding-workers cooperative

Established and composed of user members, meaning persons or corporations that use theservices offered by the cooperative;

Collective Entrepreneurship and the COOP Formula

The 7 cooperative principles• Voluntary and open membership for all;• Democratic member control;• Member economic participation;• Autonomy and independence;• Education, training and information;• Cooperation among cooperatives;• Concern for community.

Collective Entrepreneurshipand the COOP Formula

The cooperative values

Cooperatives are driven by values, found in :• empowerment,

• personal and mutual responsibility,• Democracy,• Equality,

• Solidarity,• Equity,• Education,

• Honesty, transparency and mutual aid.

Collective Entrepreneurship and the COOP Formula

The Cooperative Difference

• Participation in ownership• The member takes part in the ownership with the purchase of a number of qualifying

membership shares as established in the regulations.• Participation in power, decision-making

• It is the exercise of democracy in a cooperative: one member/one vote.• Participation in profit-sharing

• The allocation of rebates is made in proportion to each member’s operations (volume).

Collective Entrepreneurshipand the COOP Formula

The various stages of a cooperative’s creation

• STAGE I – Elaborate the cooperative projectStep 1 : Gather the interest groupStep 2 : Carry out a feasibility study

• STAGE II – Coordinate the activities of the pre-cooperativeStep 3 : Hold a general assembly of organization (legal corporation)Step 4 : Measure the vitality of the project

• STAGE III – Organize the start of the cooperativeStep 5 : Measure the vitality of the projectStep 6: Organize the associationStep 7: Organize the enterprise

The Mutuals

Collective Entrepreneurshipand the mutual societies (NPO)

NPOs that find answers to the needs of their community in order to contribute to the :• Cultural; • Moral;• Intellectual and physical.

development of their members and the society around them, in addition to helping improve the quality of life in general.

Collective Entrepreneurship

A whole range of activities to plan

The benefits of planning:

• Democratic process• Adoption of common values• Precise vision• Local vision• Awareness of the nature of the opportunities and the risks• Identification of targets

Social Economy and Collective Entrepreneurship

Goals

Therefore, a promoting group will take action to establish a social economy enterprise TO MEET A NEED OR DELIVER ON AN ASPIRATION IN THE ENVIRONMENT in which it operates and thus bring about a major change in its community.

Impacts Social economy plays an active role in the improvement of the quality of life and living conditions of a community by providing a variety of services :

• Services to people;• Socio-economic integration;• Access to cultural, sports and recreational

infrastructures;• Enhancement and preservation of natural

environments and heritage assets.

• Social: youth development and social peace, value of knowledge, less isolation, a sense of belonging, reconciliation between the nations, awareness;

• Cultural: bridge between cultures, cultural reappropriation and maintenance, reinforcement of the identity, safeguard and growth, appreciation of Indigenous languages, political acknowledgement;

• Economic: creation of stable jobs, local economy, mobilization, partnerships and supply of goods and services.

The benefits of social economy in First Nations populations

Social Economy among First Nations

Questions ?