LEEAT WEINSTOCK

Investment associate, Grand Challenges Canada

Every1Games founder Sarah Drew must decide whether to pursue a social enterprise or non-profit organizational structure. Since the term “social enterprise” can take on a number of different interpretations, we’ll define it in this case as a for-profit entity with an ingrained social mission. It is also important to point out that Every1Games is based in Ontario since this limits any hybrid options currently available in other areas, such as Community Contribution Companies (C3s) in British Columbia or Community Interest Companies (CICs) in Nova Scotia.

With this in mind, the optimal structure for Every1Games appears to be a for-profit social enterprise. This decision is based on a number of key factors that Drew should consider in determining the right path for her organization. As outlined in the MaRS white paper Social Enterprise in Canada: Structural Options, these include: control and governance, capital needs, the market and motivation. As a privately owned for-profit business, Every1Games would benefit from the flexibility in how it is controlled and managed and the types of programs or services it chooses to implement. Likewise, it would benefit from financial flexibility in the sorts of capital it could attract at start up and on an ongoing basis, as well as what the funds are used for.

Contrary to Drew’s presumptions that government and philanthropic funders would be “more willing” to give to non-profit entities, there is a wide range of impact investors in Ontario, including high-net-worth individuals, foundations, angel investors, etc., that would be willing to provide grants for debt or equity capital to for-profit organizations embedded with a social mission.

In terms of the market, assuming that there is little competition for game development and creative production workshops and related services, and that Drew understands the needs and wants of her customer base, then there should be ample room to charge a fee for service for program participants. Finally, while it is clear that Drew’s primary motivation is centred on social impact as opposed to profit, this does not negate the viability of a for-profit structure. A for-profit business model and entrepreneurial approach will

help enable her to create sustainable impact at scale — the ultimate objective of a social entrepreneur.