Partnered Partnered content Amid economic uncertainty, 22 per cent of Canada’s social enterprises report growth

Canada’s economy may be on the verge of a potential recession, but a new report shows that social enterprises in the country continue to grow.

New data from Buy Social Canada shows that 22 per cent of social enterprises surveyed are reporting growth or new services in the past year alone.

“I think the non-profit sector and particularly the social enterprise sector within that is a very innovative space,” said Rebecca Sherbino, founder of The Raw Carrot. 

When she started her not-for-profit 12 years ago, the concept of a social enterprise was still unfamiliar to many Canadians, including herself.

“I read the term ‘social enterprise’ and thought, ‘Oh, what we’re doing is called a social enterprise. There’s a name for it!’” said Sherbino.

Her organization employs people facing barriers to traditional work by selling food.

She says the social enterprise model has since exploded.

That growth is underscored by Buy Social Canada’s release of the first national survey of the sector in 10 years. 

“It’s really helping policymakers better understand where social enterprises are operating, who they’re employing, how they’re generating their income and their impact, and what barriers or opportunities exist to sustaining and scaling the social enterprise model,” said Elizabeth Chick-Blount, CEO of Buy Social Canada.

More than 400 social enterprises across Canada took part in the survey, operating in sectors including construction, healthcare, tourism, the arts and more.

“Social enterprises are operating in rural and urban communities across Canada. They are operating businesses across a variety of sectors, at the same time as contributing to inclusive employment and local economic development,” Chick-Blount said.

The social enterprises surveyed generated more than $6.5 billion in revenue and paid more than $250 million in wages, according to the data, illustrating the sector’s significant contribution to the Canadian economy, said Chick-Blount.

Without this national data, social enterprises can often fall under the radar at economic development, workforce, innovation and policy conversations, she added.

“Evidence-based policy starts with having evidence, and we hope that this survey can help contribute to a greater understanding of the impact, capacity and needs of the social enterprise sector,” she added.

Currently, many policies do not support social enterprises, according to Sherbino.

“Policy in Canada is geared against social enterprises and certainly against work-integration social enterprises,” Sherbino said. 

“This data is very, very helpful.”

Improving access to markets, capacity-building support, and flexible financing could help unlock the sector’s economic and social potential, the report said.

As the report highlights, the government has made social procurement commitments, and Chick-Blount said she hopes the report’s specific recommendations will support these ongoing efforts.

In a statement, Public Services and Procurement Canada (PSPC) said it views social enterprises as important partners in building resilient and inclusive supply chains. The department noted that Procurement Assistance Canada held 3,640 events across the country from 2024 to 2025 to help social enterprises and other diverse businesses access federal contracting opportunities.

PSPC said federal procurement policies increasingly consider social and community outcomes alongside cost and quality, pointing to initiatives such as the mandatory five per cent Indigenous procurement target, the Policy on Social Procurement and the Buy Canadian Policy.

Innovating for impact

Many social enterprises are exploring new ways to expand their reach, including through franchising and business acquisition, according to the Buy Social Canada data.

But doing that isn’t always easy, with limited access to markets, constrained capacity-building support, and a lack of flexible financing all barriers to expanding, found the data.

Marc Soberano has seen those challenges firsthand at his Toronto-based social enterprise, Building Up.

The organization provides construction and renovation services while employing people who face barriers to work in the trades.

“We’ve grown so much beyond what I would have ever expected, and it still feels like there’s so much to grow,” said Soberano.

The surveyed social enterprises employ more than 18,000 people, including over 5,600 individuals facing barriers to employment, highlighting the sector’s role in creating inclusive job opportunities.

Despite that impact, Soberano said social enterprises are still often underestimated when it comes to handling complex work.

“It’s on the social enterprise sector to change this narrative by helping people realize that they can trust us,” he said.

“Bet on each other and show each other what we’re all capable of.”

The challenge comes at a pivotal time. 

Over the next decade, an estimated $2 trillion in Canadian small and medium-sized business assets are expected to change hands, according to the Canadian Federation of Independent Businesses. 

In response, Buy Social Canada is calling for targeted government supports to help social enterprises take advantage of business transition opportunities to preserve local jobs and maintain essential services in the process.

The organization also launched its Seal the Deal Fund in 2022 to help address financial barriers to access the market, covering costs such as legal fees, proposal writing, and equipment purchases needed to secure new contracts and opportunities.

For many social enterprises, the push to scale is driven by social demand. 

Building Up received more than 4,000 applications for just 100 training spots last year.

“In the private sector, when they want to grow a business, they acquire businesses. I think that’s something we need to think about too,” said Soberano. “It would help us grow and train more people.”

The diversity of social enterprises is large and at the Raw Carrot, Sherbino’s team has been able to grow into six more communities while maintaining its mission.

“We non-profits tend to under-emphasize our own impact,” said Sherbino.

She has three more Raw Carrots scheduled to open this year, working alongside faith groups and other non-profits to maximize her reach.

“The social enterprise sector and especially the potential for social franchises to expand, the demand is certainly there,” she said.

“It’s an exciting time to be a social enterprise.”