Modern economic institutions are broad, as they include various actors with many different needs and values. Traditionally, for-profit business organizations were associated with capitalistic ideas of big corporations designed to explicitly make money. However, because of globalization and enlargement of entrepreneurs, institutions were redefined and started to incorporate the concepts of the third sector into the standard for-profit model. Rapid immigration helped the emergence of various Diasporas in the Western Hemisphere, and they are also interested in the creation of businesses. Thus, as that particular group is invested in giving back to their home country and their local ethnic community, these relationships often enable their for-profit business also to be socially conscious. To explore the concept of socially conscious Diaspora businesses, it is essential to learn what contributes into social economy, what are Diasporas and their place in Canada with the example of Mainstreet Equity Corp.
Social Economy and its Actors
First, social economy is a broad and diverse term. It is a dynamic part of capitalism, and differs based on the types of organizations involved, rules of operations, and a variety of values pursued (Quarter and Mook 9). The focus on these aspects of the market economy is accompanied by related research on the features of the third-sector or, in other words, non-profits, charities, and civil society organizations. Some of the market research theorists interpret the social sector as a “mixed welfare system consisting of the market, state, and informal private households” (Quarter and Mook 9). Such a description implies that often it is hard to pinpoint the exact characteristics that would describe a socially driven business. Therefore, as the lines are blurred, the social economy becomes a combination of multiple ideas and actors rather than something genuinely distinct.
Another unique characteristic of a social economy can be determined by the context, where the economy is present. Thus, if the social institution is a part of the developed economy, the elements that make it social would differ from that of a developing country. For instance, simple banking can be described as socially driven in the context of a developing country. In contrast, a traditional banking system of the prosperous economy is exclusively designed to make profits. The trajectory of the Canadian approach to the social economy is defined as economic democracy (Quarter and Mook 10). The method is heavily based on the community network support as well as the consistency of the government.
Due to the diversity of economic institutions as well as the definition of social economy, many institutions find it hard to identify with only one part of the sector. Some businesses that belong to the social economy intersects with both private and public areas. For example, the co-operative farmers are actively functioning within the private-sector economy, but the unique organizational features also place it under the social industry umbrella. Thus, the distinction between the financial system and specific areas of society often coincides, making it especially hard to define. Therefore, a for-profit business can belong to the third sector economy, as the distinctions need to be made in the way an entity functions in the society as a whole.
Businesses of Ethnic and Cultural Minorities in Canada
Minority groups tend to share similar features, as the new-coming immigrants often struggle with “high unemployment, social dysfunction, and for some, restrictions on the control of their land and resources” (Wuttunee 18). The hardships tend to be similar to that of the Aboriginal communities, as according to 2016 figures, they constitute to 4.9% of the total population (“Aboriginal peoples in Canada” para. 4). In addition, the minority status strengthens the overall unique connection to the rest of the group members. Some indigenous communities engage into the co-operative business, as it is described to include a group of individuals that are united voluntarily to meet their needs through a collectively owned institution (Olaniyan et al. 3). The case study that examines the Indigenous Foods co-operative Neechi Commons presents the role of business as empowering both economically and socially (Olaniyan et al. 3). Neechi Commons, like many other Indigenous co-operatives, uses the approach called “quadruple bottom line” (Olaniyan et al. 6). The method stands for the merge between economic, social, environmental and unique cultural principles while doing business to reach a sustainable, healthy living.
The emergence of Aboriginal institutions is usually followed by a specific need expressed by the network rather than the general need to make a profit. President of Neechi Commons described that inspiration for the business came from underdevelopment that was “created with the expansion of the suburbs and the big markets out there” (Olaniyan et al. 6). Therefore, the expansion of the economy to bigger markets does not directly lead to the development of minority groups since some of their cultural and social needs are not met through these economic institutions. Thus, despite gaining profits from the businesses, diasporas and other ethnic communities pursue the goal of supporting the network as the other solutions on the market failed to satisfy their necessities.
The case study presented the importance that food, in particular, had to the community. Despite food being a basic need for many, for minority groups, it is culturally significant to have access to certain kinds of food. Historically, the Indigenous entrepreneurship in Canada is connected to the colonial past (Olaniyan et al. 10). Hence, the historical memory of oppression plays a vital role in their desire to be culturally independent through economic empowerment. Since diasporas share the minority status and importance of the cultural identity with the Indigenous populations, the desire to express culture and empower the community is essential for their business identities.
Diasporas and Entrepreneurship
The diaspora business is a particularly interesting case, as, despite the connection to the private sector of a market economy, there are evident connections with members of the community. Immigrants and their descendants that preserve an emotional attachment to the country of their birth carry out Diaspora business activities (Baron and Harima 79). The researchers argue that three notions seem to define a diaspora and its members, including diffusion, home country orientation, and boundary preservation (Baron and Harima 79). Moreover, diaspora entrepreneurs tend to be described as successful and innovative within the Western Hemisphere (Baron and Harima 80). This is due to the unique characteristics defining this part of the population, including the mixed embeddedness (Baron and Harima 80). The terms arise from the connection that individuals have to the networks within a diaspora. Moreover, this includes social, economic, and political surroundings of their host country. Therefore, diaspora members are equipped with specialized knowledge and unique experiences that are not feasible to the native business owners.
Moreover, while locals’ focus might be on the social issues within their country, as the social network of an immigrant is more diverse, the possible course of civic actions becomes broader. Therefore, as community relations are essential to social businesses, diaspora entrepreneurs tend to relate their business to the third-sector. Diasporas usually constitute the minority in a society. Moreover, their experiences might include the history of war and poverty. Therefore, the need to help the community is often prevalent because members of a diaspora are particularly described as having a close connection to their host country. This need is vivid both inside of the Diaspora and beyond, which creates a unique platform for philanthropy. Furthermore, migrant families and ethnic communities tend to have a positive effect on entrepreneurs within their diasporas (Elo et al. 121). Several generations of diaspora members usually tend to provide business advice to support shaping new opportunities inside the network (Elo et al. 121). Due to all the cooperation and support, members of the Diaspora often feel empowered to provide for their community, which corresponds with the values of a socially driven economy.
Indian Diaspora in Canada
Indian diaspora is a significant part of Canadian immigrant population. Indian immigrants constitute 18% of all permanent residents recipients in Canada based on 2017 census, making them number one out of all other countries (“Permanent Resident Data”). Overall, 4.0% of people in Canada claim their ethnic origin to be East Indian (“Focus on Geography Series, 2016 Census “). Therefore, Indian Diaspora in Canada is growing and has a visible impact on Canadian ethnic, political and economic picture. Moreover, Sikh immigration, in particular, has a historical pattern of movement to Canada.
Although Punjab and Canada are located on different continents, there is a historical connection that the two places have with each other. The members of the Ghadar Movement originated in the 20th century, which was established to oppose British imperialism in India (Chatterjee 91). The Ghadarties identified British control as exploitation, which induced Punjabi Indians to search for the working opportunities overseas, including North America. The province of British Columbia was one of the most common destinations. Indians worked diligently on difficult jobs for a salary that was drastically lower from the white newcomers. Therefore, due to the injustices on the workplace, hostile environment and unfair treatment Punjabi Indians started to organize close ethnic communities similar to today’s diasporas (Chatterjee 91). The reason behind mobilization was to demand improved treatment based on being British subjects. However, various discriminatory incidents, such as Komagata Maru forced Indians to fight for the freedom of India rather than finding a new settlement in Canada, which was dominated by white people (Jakobsh and Walton-Roberts 167). Therefore, the complicated relationship with Canadian working system aspired Indians to reconsider the total re-settlement.
Overall, despite the empowerment from the Ghadar movement, their goals were only able to be reached by overthrowing the British rule. However, this incident the connection due to the constant flow of information, ideas, and correspondence. The very first wave of immigrants to Canada was able to influence and inspire the movement that imposed the British colonization by sending encouraging letters (Chatterjee 91). The close connection to the community of a host country is similar to that of contemporary diasporas. Therefore the historical relationship between Canada and Sikhs is especially valuable.
Mainstreet Equity Corp and its connection to SSE
Although, as was mentioned earlier, the primary business concern is to turn a profit, yet this has not stopped many various diaspora members from pursuing socially conscious goals through the private sector. The perfect example is Bob Dhillon’s business, Mainstreet Equity Corp, which is a real estate business based in Toronto, owning, reportedly, 13000 apartments in Canada alone (Tribune News Service para. 4). Founded in 1997, Mainstreet Equity Corp focuses on acquiring and developing properties, primarily family homes all around Canada. Bob Dhillon has used his company’s resources for various socially conscious activities. In 2011, he helped nearly 100 households find temporary shelter in apartments Mainstreet Equity Corp-owned after fires destroyed their homes in Slave Lake, Alberta (Tribune News Service para. 4). Overall, Bob Dhillon business philosophy is remains connected with his home community in India.
This is a clear example of a business using its assets and resources in a way that benefits the community around it, at little cost. A company does not have to convert to being a charity to make a positive impact on its environment, and clever use of resources can become positive externalities for the community. Furthermore, Dhillon made Indian headlines after donating 10 Million dollars to the University of Lethbridge and creating numerous scholarships for Indian students in subjects such as the blockchain, robotics, and cryptocurrencies, and AI (Tribune News Service para. 4). Maintaining a scholarship might appear like a cost; however, training and recruiting bright young professionals is best looked at as a long term investment, improving the lives of these individuals and augmenting the business. The ancillary benefits of education to society are numerous, and, in the long run, the business benefits as well.
Bob Dhillon himself is a Sikh immigrant that belongs to the Indian Diaspora, as it is the country, where he grew up. Dhillon also maintains a desire to invest in his country of origin. Dhillon’s company is a for-profit corporation; however, it is socially driven at the same time. Various market institutions belong to the Social and Solidarity Economy (SSE) sector. Traditionally, it has been “social enterprises, co-operatives, community-based organizations, mutual benefit societies, associations, self-help groups, and foundations” (Lee 65). Overall, SSE provides opportunities for shaping society in a sustainable and just way, as it is based on the feeling of cooperation and solidarity. The SSE is designed in a way to present people with opportunities, especially during the instances of vulnerability.
In consideration to lack of balance in the redistribution of wealth and other economic inequalities affecting the minority groups, SSE is an alternative because of different ethical values, including cooperation and strive for equality. Moreover, SSE emerges through the bottom-up approach, meaning that active citizens tend to be the key actors of SSE development (Lee 65). However, the more modern SSE approach includes government support for actors that want to contribute to the economic sector. However, entrepreneurship, like in the case of Bob Dhillon, is excising the traditional approach to institution establishment, as he is a self-made businessperson. However, the Canadian system grants immigrants, including the ones that are first-generation an opportunity to establish businesses. Therefore, the Mainstreet Equity Corp is a hybrid between the classical private-sector entrepreneurship, support of the diaspora community, and government Social and Solidarity Economy incentives.
While still a corporation, that is traditionally not viewed as SSE or any premises of social consciousness in the organizational core, Dhillon’s business possess a number of socially conscious traits. Usually, for-profit companies are not the first entities that come to mind in the context of social economy. At first, Bob Dhillon’s donations to universities, scholarship and more could be described as general philanthropy of a generous person. However, a socially responsible business is usually for-profit; although, it is also looking for ways to use its generated income to create a sustainable environment. Therefore, such an entity needs to advocate for actions that contribute to the local community, and, in the case of a Diaspora, even beyond that. The business is doing so through various voluntary practices that are aimed to improve the society, environment, and level of equality and cooperation through involvement in the community.
Thus, his corporation contributed socially to the development of its properties. They develop run-down, old-fashioned properties into real-estate that would be desirable by the modern market. Increasing the overall value of the neighbourhood and communities where this business operates. In this way, Dihlon’s innovative approach allows his company to pursue a profit that creates positive externalities for society. Moreover, the fact that Dhillon regularly chooses to support Indian communities is what associates his business with social economy. Even though a corporation is designed to bring profit, the roots of the company suggest tight connections to a diaspora.
When Dhillon and his parents first immigrated to Canada, their initial position in the society was that of a minority. Therefore, the initial start of his journey in Canada was associated with the network of Sikhs. Moreover, the religion and culture of Sikhs is directly connected to the sense of community, philanthropy, and strive to the overall quality (Oliverio 17). Dhillon brought to Canada the unique set of culture, experiences, tradition and innovation, which make his connections to Indian ethnic and religious circle especially relevant within the context of social economy. Furthermore, Dhillon did not cut his bonds with Punjabi Indians, as he continuously gives back to people in India as well as to the local population.
Conclusion
To summarize, social economy varies based on the organizations that are incorporated into the system, operational rules, and a variety of values pursued by a company. The social economy remains a loose terminology to describe businesses that perform socially-conscious actions while perusing profits. Moreover, diaspora communities, because they tend to be minorities within a country, tend to perceive the social needs of society. Diasporas, unlike the native populations, have unique needs and concerns that would shape their outlook towards commerce. The Indigenous population shares many characteristics with diasporas; namely, they are not the dominant group in society. Thus, they might be a subject to social and economic discrimination. Diaspora businesses, therefore, a likely then to be socially conscious. A notable example of a diaspora is an Indian community in Canada, who have a historical connection to North America reaching back to the 20th century. Bob Dhillon is an excellent example of a diaspora entrepreneur whose business, Mainstreet Equity Corp is socially conscious and creates positive externalities for its communities while generating a profit.
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