The Fonds d’économie sociale du Sud-Ouest (FESSO) aims to support social economy enterprises and projects through financial aid at the start-up, strengthening, expansion and promotion stages.
PRINCIPLES AND DEFINITIONS
FESSO’s investment policy draws on principles and definitions adopted by the Chantier de l’économie sociale, which comprises most Quebec groups involved in the social economy.
The social economy refers to community entrepreneurial activities that respect the following principles:
- Their overall purpose is to provide services to members (workers and/or consumers) and the community.
- There is managerial autonomy with respect to the state.
- The decision-making process is democratic.
- People and labour have primacy over capital in the distribution of surpluses and income.
- They foster participation, empowerment and individual and collective responsibility.
The social economy is exemplified in business projects with both economic and social goals. A social economy enterprise produces goods and services of social utility that contribute to a net increase in collective wealth. However, it is not the purely financial profitability of their production activities that is valued, but their social profitability.
In both the public and private sectors, the social profitability of an activity is evaluated chiefly by the number of jobs it creates, but also by:
- Its contribution to democratic development.
- Its support for an active citizenry.
- Its promotion of values and initiatives of individual and collective empowerment.
Social profitability helps improve a population’s quality of life and well-being by offering a wider range of services and increasing the number of jobs created.
However, social economy projects and enterprises must be economically profitable. Their economic profitability rests primarily on independent revenues earned through market activities with private or public consumers.
Government assistance, in the form of a single grant or recurring payment, may be necessary, as enterprises and projects useful for the community are often implicated in less profitable activities or characterized by a limited or inadequate market.
COACHING
RESO emphasizes a coaching approach with promoters, in keeping with its views on project and kills development.
INVESTMENT POLICY
FESSO’s investment policy is based on:
- Establishing a framework and process of equitable and clear allocation of funds to promoters and enterprises.
- Being flexible enough to meet projects’ and enterprises’ needs.
- Maximizing the effect of leverage of funding for development of goods and services that meet the Sud-Ouest community’s needs.
GENERAL ORIENTATIONS
Promoters must demonstrate that their projects or enterprises:
- Meet identified needs in the community or improve on already-available goods and services.
- Produce goods and/or services.
- Can generate independent revenues.
- Will be financially and socially profitable.
- Will create or maintain real, lasting and high-quality jobs.
- Have adopted, or will adopt, democratic practices in their associations and day-to-day operations.
- Are in keeping with development priorities identified locally.
The Fonds d’économie sociale is intended not only for emerging social economy enterprises and projects, but already-existing enterprises seeking to strengthen and expand.
FESSO’s approach is complementary to other forms of financial assistance. In a context of complementary projects and co-development in the district, moreover, RESO will encourage collaboration between the various social economy projects and enterprises throughout.
Promoters must demonstrate that they have set down roots, or wish to set down roots, in the community, and benefit from an already-established network. The organizational and decision-making structures of the enterprise or organization must be as representative as possible of the people concerned.
ELIGIBLE PROJECTS AND ENTERPRISES:
Any social economy project or enterprise arising out of a non-profit organization or cooperative whose headquarters or principal activities are, or will be, localized in the Sud-Ouest borough, and respecting the general principles, definitions and orientations outlined above.
EXCLUSION
FESSO admits no project with a religious, discriminatory or degrading character.
PRIORITIES
Priority will be given to sectors and needs identified in the Plan d’action local pour l’économie et l’emploi (PALÉE).
Projects that emphasize the following elements will also receive priority treatment:
- Long-term settlement of the enterprise in the district
- A positive impact on local development and response to the population’s needs
- Local hiring of the unemployed, particularly those from groups underrepresented in the labour market
For information on eligible expenditures, the type of financial assistance granted, the analysis procedure, and documents required, click here.
FOLLOW-UP AND SUPPORT
Projects are also subject to a follow-up. At any time during the year of FESSO financing, RESO may contact project promoters to obtain information on how the project is progressing. In this way, RESO will be able to adjust and adapt its response to promoters so that the best support possible is accorded.
To do this, the promoter must designate an individual who will maintain contact with RESO.
APPROVAL COMMITTEE
The approval committee of the Fonds d’économie sociale du Sud-Ouest is made up of seven members, including:
- Two representatives from RESO’s Board of Directors.
- Two representatives from social economy enterprises in the Sud-Ouest.
- Two representatives from public or socioeconomic partners.
- The director of RESO’s Community Development and Social Economy Service.
Committee members are named by RESO’s Board of Directors. Their mandate is for one year and may be renewed at the Board of Director’s discretion.
The committee meets as needed according to applications submitted. Quorum is the majority of functioning members. Decisions are binding subject to available funding and must be confirmed by the Board of Directors.
For more information, Nicole Gladu.
Social economy enterprises have access to other investment funding: