Social Enterprise Development as a tool for Rural Economic Development - A Case Study from East Kootenay, British Columbia, Canada

Social enterprises promote resilience in rural communities by enabling local community members to create positive, sustainable change. These enterprises not only support economic development but also inspire transformative social change across regions.

In 2024, Impact Toolbox partnered with Community Futures East Kootenay (CFEK) to pilot the East Kootenay Social Enterprise Incubation Project. The program was a starting point for social purpose organizations and leaders to explore social entrepreneurship to grow their impact and achieve financial stability.

In this story, discover how new social impact-driven businesses are making a difference and celebrate the journeys of new social enterprises that are supporting the rural communities of the East Kootenays.

Opportunities and Challenges Facing Non-Profit Leaders in the East Kootenays

Social enterprises are vital for rural socio-economic development, combining business skills with social impact. They generate both community growth and sustainable income streams. In 2023, Canadian social enterprises generated $4.7 billion in revenue, employed 9,400 people, and paid $314 million in wages, demonstrating their financial viability. In rural BC, social enterprises offer solutions to local challenges, fostering sustainable development.

In the East Kootenays, social change leaders recognize the need to diversify revenue beyond grants to drive growth, address systemic issues, and scale their impact. However, as noted in the 2021 Social Impact Report by Startup Canada, social entrepreneurs face significant challenges in securing funding, managing cash flow, and navigating marketing. Affordable support in business planning, mentorship, and training is scarce, creating obstacles for non-profit leaders trying to build sustainable enterprises.

Without proper guidance and resources, these leaders struggle to transform their ideas into viable enterprises, limiting their long-term impact on communities. This lack of support stifles the positive change they could achieve with the right tools and resources.

Introducing the East Kootenay Social Enterprise Incubation Project

In response to these challenges, Community Futures East Kootenay (CFEK), in partnership with Impact Toolbox, launched the East Kootenay Social Enterprise Incubation Project in March 2024.

Six organizations were selected to participate in Impact Toolbox’s full 16-week incubation program. These organizations benefited from self-paced training and over 13 hours of coaching provided by six experienced coaches, further supporting them in turning their social impact ideas into successful and sustainable social enterprises.

Program Impact and Achievements

Four new high-impact social enterprises have emerged from this pilot project, each with unique ventures aimed at addressing different social issues in their local communities. Together, they have already created nine jobs and expect to expand up to 24 jobs next year. They have already made up to $103,000 in community investments, expecting to grow to $2.3 million next year. To date, they have generated $2.39 million in revenue, with expectations of raising an additional $2.35 million in the coming year.

Each of these teams has embarked on a transformative journey through the program. Below are some of the most impactful highlights from their experiences:

1. Developing social enterprise awareness and an enhanced entrepreneurial mindset.

Upon completing the program, all participants reported a significant increase in their knowledge and skills in social entrepreneurship and expressed a strong interest in continuing to grow their social enterprises. The program also fostered a shift in their thinking towards a more entrepreneurial mindset, activating participants to explore new approaches. They have gained essential skills in business model development, impact measurement, and strategic planning, which have been crucial in refining their ventures for sustainable growth.

Founders especially highlighted the value in the economic, organizational, and management skills gained and expressed appreciation for learning how to move beyond traditional non-profit models. They valued both the online courses and live sessions, noting that these resources were instrumental in advancing their initiatives.

“I loved the social enterprise incubation program. The facilitators and homework were very useful. It helped us get out of the non-profit mindset and feel more confident in our ideas. I really appreciated the level of support and availability of the facilitators. This program has given us confidence in the sustainability of our food innovation centre, its community impact, and our ability to run it!”

Sophie Larsen, Kitchen/Food Innovation Center Manager | Community Connections Society South Eastern, B.C. Canada

2. Unlocking a community of knowledge sharing and support.

A key highlight of the program for participants was the collaborative environment, where they appreciated receiving personalized mentorship from experienced social entrepreneurs. This support system not only inspired them to continue their social entrepreneurship journey with confidence but also provided access to a community of practice. They felt that the program offered essential guidance and practical support for navigating the complexities of starting and managing social enterprises.

Within this community, these non-profit leaders were also able to share experiences, challenges, and solutions with each other, benefiting from the collective knowledge and practical insights of their peers. Many participants expressed gratitude for the opportunity to connect with others, with one participant noting, “This was SO valuable. I loved connecting and learning with other social enterprises.”

Looking Ahead

Overall, the East Kootenay Social Enterprise Incubation Project has been highly valued by participants, who found it to be valuable, inspiring and supportive. “This program has given us confidence in the sustainability of the Food Innovation Center, its community impact, and our ability to run it,” says Sophie Larsen, Manager of Food Innovation Center.

This partnership between Impact Toolbox and CFEK showcases the value of targeted support for non-profit leaders with social enterprise ideas. Equipping them with the skills and resources has allowed them to contribute significantly to rural socioeconomic development and community resilience. As the leaders continue to advance their initiatives, the program is fostering sustainable change across the East Kootenays.