I will be making my presentation in French. Is that all right?
Thank you for your invitation.
First, I will be talking about the social economy in Quebec, which is growing quickly not only in Quebec and Canada but in other parts of the world as well. Last week, we organized the Sommet de l'économie sociale et solidaire, a summit on the social economy, which drew 650 leaders from all the regions of Quebec, along with people from 20 different countries, representing every continent. The social economy is a notion quickly taking hold in Europe, Latin America, Africa, Asia and Australia.
The Chantier de l'économie sociale, the organization I represent is a coalition of networks working together to promote the social economy, encourage its development and ensure the collaboration and representation of collective entrepreneurship. The social economy is not a new concept. People familiar with Quebec history will remember that, 100 years ago, Alphonse et Dorimène Desjardins founded the first caisse populaire, or credit union. At the time, they were part of Montreal's social economy.
Today, the social economy has a place in many of Quebec's industries, including tourism, culture, housing, agriculture, integration into the workplace, adapted businesses that hire disabled people, daycare, homecare for seniors, recycling, new technologies, fair trade, community media and many more.
What are the characteristics of a social economy enterprise? It is an enterprise that emerges from a collective process and is rooted in the economy. In other words, it is a cooperative or non-profit business, a value-added business that considers people and sustainable development to have primacy over capital, and that is financially viable but also socially profitable. Lastly, a social economy enterprise — and there are many in our society — that provides an environment conducive to social innovation.
In Quebec, the economic power of collective enterprises is a key factor in the economy. There are over 6,500 collective enterprises, excluding large financial and agricultural cooperatives as well as community organizations in the non-commercial sector, which the rest of Canada calls the volunteer sector. In all, those enterprises generate $4.3 billion in annual sales.
They are also businesses that last. Investment experience in social economy enterprises, as well as a number of studies, have shown that social economy enterprises have a 65 % five-year survival rate, compared to 35 % for private businesses.
Why do social economy enterprises last longer than traditional small and medium-sized enterprises? Because they have deep roots in the community, and because they are established as networks and thus have support. Moreover, over the years, public policy has adapted to the realities of the social economy.
It is important for elected officials and for all stakeholders and members of society to understand the role that the social economy plays in revitalizing neighbourhoods and villages. The social economy is a natural partner for municipalities because it makes an important contribution to community development. It makes it possible to provide a wide range of services at all stages of life, including perinatal services, daycare, recreation, public transit, home care for the elderly, and funeral cooperatives.
The social economy also plays an important role within communities in the exploitation of local resources through forestry and agricultural cooperatives, recycling businesses, and cultural expression. It enables a collective response to social and material needs both locally and regionally, through such things as housing coops, school cooperatives, access through information through community media, solidarity financing, and so on.
It plays a role in social and professional insertion and integration, in creating permanent jobs for marginalized groups, such as disabled people and young people with problems, to mention just two. Therefore, it contributes to the dynamics of community economic development.
How much time do I have left?