Nudging Public Policy to Promote Growth in the Social Enterprise Sector: A Manitoba Case Study by Maria C. Gheorghe A thesis submitted to the Faculty of Graduate Studies of the University of Manitoba in partial fulfillment of the requirements of the degree of MASTER OF ARTS Department of Political Studies University of Manitoba Winnipeg Copyright © 2021 by Maria C. Gheorghe Abstract Social enterprises are important for local economic development in Canada and have an impact that goes far beyond their financial contributions to the economy. As a relatively new field though, public policy is needed to help grow the social enterprise sector. The purpose of this thesis is to assess whether nudging, an approach from behavioural economics, could used as part of public policy aimed at promoting growth in this sector. To answer this question, this thesis engages in a case study of the Manitoba Social Enterprise Strategy (MSES) and its related policy documents (MSES 2017 and MSES 2018). This thesis uses MSES Pillar 3: Expand Market Opportunities as a litmus test for whether nudging, vis-à-vis public policy, can promote growth in Manitoba’s social enterprise sector. Nudging is defined using the framework of choice architecture, addressing non-financial barriers, and experimentation. The key findings of this research are that nudging is already a part of successful public policy which helps promote growth in Manitoba’s social enterprise sector and opportunities exist to use nudging to expand market opportunities for local social enterprises. Both these findings support this thesis’ central argument that nudging should be used to promote growth in the social enterprise sector. i Acknowledgments As I have been a graduate student for several years and with each passing year have accumulated a growing list of people whom I must acknowledge and thank…this section may be lengthy. It can never be greater, however, than my gratitude for all their help and support. I want to start by thanking the members of my thesis committee. Thank you to my thesis supervisor Dr. Karine Levasseur who has provided me with invaluable guidance and shown me both patience and grace as I slogged through this thesis. I would have been lost without her encouragement and feedback and owe her an enormous debt of gratitude. Thank you also to Dr. Ryan Godwin who agreed to serve on my committee as an external member and provide a much-needed economics perspective and to Dr. Andrea Charron who kindly agreed to be my thesis defence chair. I also want to thank my internal committee member Dr. Royce Koop. I have known Dr. Koop since my second year of undergraduate studies and have been the grateful recipient of much excellent advice since that time. I cannot describe how much his mentorship and encouragement over the years has meant to me, but I can say that one day I hope to pay it forward. I have also had the good fortune to have as a mentor Dr. Barry Ferguson. I have many fond memories of sitting in his office to discuss the nuances of Canadian politics and it was as a student in one of his classes that I first had the idea of researching what would eventually become this thesis. During my time as part of the Political Studies department at the University of Manitoba I have had the chance to learn from amazing professors. I have also had the chance to know the amazing support staff. Thank you to Val Myers, Sheri Miles, and Shauna Kapusta (I have listed you in the order we first met) for their help in navigating the University’s bureaucracy and for the lovely chats we shared. At this time, I also want to acknowledge the funding support I received as a graduate student. I am the grateful recipient of the Duff Roblin Fellowship, the UN Intensive Summer Program Award, the Faculty of Graduate Studies Travel Award, and the Graduate Enhancement of the Tri-Council Stipend. I have also relied on the funds I received from two research assistant ii positions and two teaching assistant positions. This generous financial support has meant so much. I also want to thank Miriam Unruh from the University’s Academic Learning Centre for her help with editing and formatting this thesis and my friends Sarah and Diana for listening to my complaints during the aforementioned process. Lastly, and I promise this is the last thing, I want to acknowledge the three constants which have sustained me throughout this experience. These are my friends, my family, and my faith. Thank you to my friends for their unfailing support, my parents and grandmother for their unconditional love, and God for blessing me with everything I needed to complete this thesis. iii Dedication I have always loved the quote, often attributed to Irish poet William Butler Yeats, that “Education is not the filling of a pail, but the lighting of a fire.” With gratitude I am dedicating this thesis to all my teachers – past, present, and future. Thank you for sparking in me, and in so many others, a love of learning. iv Table of Contents Abstract .......................................................................................................................................................... i Acknowledgments ......................................................................................................................................... ii Dedication .................................................................................................................................................... iv Table of Contents .......................................................................................................................................... v Illustrations ................................................................................................................................................ viii Disclosure ..................................................................................................................................................... ix Chapter 1: Introduction ......................................................................................................................1 Thesis Organization ................................................................................................................................... 6 Chapter 2: The Social Enterprise Sector ...............................................................................................8 Defining Social Enterprise ......................................................................................................................... 8 Social Enterprise in Manitoba ................................................................................................................. 14 The Manitoba Social Enterprise Strategy (MSES) ................................................................................... 17 The Strategy’s Purpose and Its Pillars ..................................................................................................... 18 Pillar 1: Enhance Enterprise Skills ........................................................................................................ 20 Pillar 2: Ensure Access to Capital and Investment .............................................................................. 20 Pillar 3: Expand Market Opportunities ................................................................................................ 21 Pillar 4: Promote and Demonstrate the Value of Social Enterprise ................................................... 22 Pillar 5: Regulatory Framework .......................................................................................................... 22 Pillar 6: Networks and Community Engagement ................................................................................ 23 Conclusion ............................................................................................................................................... 23 Chapter 3: Nudging .......................................................................................................................... 25 Before There Was Nudging, There Was Behavioural Economics ........................................................... 25 Nudging: A Very Short Introduction ....................................................................................................... 29 Nudging as a Public Policy Tool ............................................................................................................... 31 v Strengths ............................................................................................................................................. 32 Limitations........................................................................................................................................... 34 Uncertainties Around Using Nudging in This Way .............................................................................. 37 Nudging: At Home and Abroad ............................................................................................................... 39 Conclusion ............................................................................................................................................... 43 Chapter 4: Methodology .................................................................................................................. 44 Methodological Approach: A Case Study ................................................................................................ 44 Specific Case Study: The MSES ...............................................................................................................