Partnerships and Growth

No community enterprise succeeds alone. Every case in this course depended on partnerships: between Nations and municipalities, between communities and businesses, between enterprises and the governments, lenders and funders that supported them. Good partnerships bring skills, money, markets and credibility. Poor ones can drain time, trust and value.

This lesson is about finding the right partners, building agreements that last, and growing your enterprise without losing what makes it yours.

Kinds of partners

Most community enterprises need several kinds of partners.

• Supply partners provide the inputs, such as municipalities, businesses or households supplying waste, materials or land.
• Market partners buy the products, such as retailers, contractors, farms or public bodies.
• Operating partners bring technical skills or experience in running a similar business.
• Finance partners provide grants, loans or investment.
• Government partners provide permits, policy support and sometimes funding or contracts.
• Knowledge partners provide training, research or advice, such as colleges, universities or industry groups.
• Community partners help with engagement, volunteers and local support.

Partnerships in practice

The cases in this course show what strong partnerships can achieve.

Guelph’s wastewater treatment system processes biosolids for agricultural and other beneficial uses. It illustrates the need to connect treatment performance, material quality, end users and ongoing operational responsibilities.

At Selma Park, a developer, the shíshálh Nation and others worked together so that houses that would have been demolished became homes. The developer saved on demolition, the Nation gained homes and Nation trades gained work and skills.

On the Sunshine Coast, the Town of Gibsons and a local processor worked together on food waste collection. Gibsons provided the material and the processor turned it into a product. Each partner did what it did best.

Choosing a good partner

Before entering a partnership, ask five questions.

• Shared values. Does this partner share your commitment to people, planet and prosperity? Will they respect your principles?
• Mutual benefit. What does each side gain? Partnerships last when both sides benefit.
• Capacity. Does the partner have the skills, resources and stability to deliver what they promise?
• Track record. How have they worked with communities before? Talk to others who have partnered with them.
• Fit with your ownership. Will the partnership keep control and benefits at home, or will they flow elsewhere?

A partner who brings money but not shared values can cost more than they bring. Take time to get to know potential partners before committing.

Strong agreements

Good intentions aren’t enough. Every significant partnership needs a written agreement. A strong agreement covers:

• the purpose of the partnership
• what each party will contribute and receive
• how decisions are made and disputes are resolved
• how profits, costs and risks are shared
• who owns what, including assets, data and intellectual property
• how the community and the land are respected
• how long the agreement lasts, how it is reviewed and how it can end

For partnerships involving a Nation’s lands, rights or knowledge, the agreement should reflect the principles of free, prior and informed consent discussed in Chapter 4. Get legal advice before signing any significant agreement.

Growing your enterprise

Once your pilot is working, growth becomes possible. There are several paths.

• Grow volume. Process more of the same input and sell more of the same product.
• Add streams. Take in new inputs, such as additional waste streams or materials.
• Add products. Make new products from your existing inputs.
• Add places. Replicate the model in nearby communities, often in partnership.
• Add enterprises. Use the skills, relationships and revenue from your first enterprise to start the next one.

The last path is often the most powerful. On the Sunshine Coast, each project built on the last, and over time a circular economy grew. On Fogo Island, Shorefast has built several enterprises around the Fogo Island Inn, all run for the community.

Growing without losing yourself

Growth brings pressure. Larger partners may want more control. Investors may want higher returns. The enterprise may drift from its purpose. Protect what matters by:

• writing your purpose and principles into your founding documents
• keeping majority ownership or control at home where possible
• reviewing new partnerships and growth plans against your principles check
• continuing to report to the community
• reinvesting a share of profits in the community and the land

Growth needs governance that can handle the next stage. Review who decides, who reports, which commitments have been made and whether the team can meet them before expanding.

Honest limits

Partnerships take time and effort to build and maintain, and some will fail despite everyone’s best intentions. Growth also brings risk: expanding too fast can stretch a young enterprise beyond its capacity. Grow when the model is proven and the team is ready, not before.