News

Reflections on social enterprise: Has it lost its way?

Alan Kay, reflects on the changes that have happened in the social enterprise sector over the last three decades, read more…


Once-in-a-lifetime opportunity to transform and reduce social inequality

Job creation for those most disadvantaged represents the biggest opportunity for social change in Australia, read more…


Victoria launches Australian-First Social Procurement Framework

Victoria has launched a “whole-of-government approach” to social procurement, with the Andrews government hoping to leverage its significant buying power to bolster the state’s social enterprise sector, read more…


Social Enterprise Certification Launches Australia

Social enterprises in Australia will be able to receive national certification for the first time, with the launch of a new certification scheme read more…


Aussie Startups Creating Social Impact in 2018

Startups are diligently working on long-entrenched social and environmental problems. But don’t call them social enterprise, read more…


Predictions for 2018: Social Enterprise

Social Traders managing director David Brookes shares his three expectations for social enterprise for the coming 12 months, as part of a series of 2018 predictions from leading experts across the social sector, read more…


Good Spender Closes As Sector Looks to Social Procurement

Australia’s first online marketplace exclusively for social enterprise has closed as the sector looks to social procurement as the “next big opportunity” read more…..


Article: How social enterprises are building a more inclusive Australian economy

By Erin Castellas and Jo Barraket

Social enterprises employ twice the rates of Australians with disability and female managers as mainstream small businesses. Our study of Victorian social enterprises also found 12% of jobs are held by previously long-term unemployed people (those who have been out of work for more than 12 consecutive months), and 2% by Indigenous Australians.

This shows that social enterprises are an important vehicle for the development of an inclusive economy – one that broadens economic participation, is more equitable, stable, and sustainable.

Social enterprises are organisations that aim to address social issues, such as homelessness or social exclusion, using strategies from business. For example, by running cafes to train and employ homeless or disadvantaged youth, social enterprises can harness business for social outcomes.

Around one third of board positions at social enterprises are held by women, compared to less than one quarter in mainstream businesses.

Social enterprises also attract significant amounts of volunteer support – around 251 hours per enterprise per year. This creates further opportunities for those marginalised from the mainstream workforce, fostering training opportunities and a sense of community.

These statistics are likely conservative, as many social enterprises do not yet track employment, diversity and trainee statistics.

 

And this is only one part of the story of social enterprises – until recently there was little hard data or research on the sector or its impact.

Not all social enterprises are focused on job creation, many tackle other social and environmental challenges such as reducing environmental impact through recycling, providing services for small communities (such as petrol), and creating responsibly sourced and produced products and services.

But our research shows social enterprises face a lack of resources for marketing, skills development for employees, and accessing finance. Many social enterprises are young non-profit organisations and struggle to fund their own growth.

Challenges faced by social entrepreneurs

The majority of social enterprises have between one and 200 employees, and are structured as not-for-profits. This is part of the reason why the barriers faced by social enterprises are often financial – many lack the necessary operating structures or skills to attract the right kind of partners or financing.

For example, CERES Community Environment Park, an environmental education and technology demonstration park, was completely reliant on grants when it was founded. However, facing the loss of government funding, it was forced to adopt other revenue streams, such as a farm-to-table veggie box delivery service.

The costs for social enterprises to access finance are generally high, as they must first develop scalable businesses and apply for investment. The loans and investments in social enterprises are often small, even though investors and lenders have to do the same risk analysis and due diligence as they would with any other business. This pushes up the cost (interest rates, for example) of accessing finance.

There is some movement to make it easier to support and invest in social enterprises. New organisations are providing programs for social entrepreneurs to build the skills required to grow their businesses and attract investment.

The impact investment sector (made up of investors that focus on social and environmental alongside financial returns) is also growing. And there are now grants available to help social entrepreneurs build capacity and secure investment capital.

 

There are 20,000 social enterprises in Australia, and this number is growing. This growth is in part driven by local and state governments, as well as some large corporations, deciding to source goods from companies that meet social and sustainability criteria.

Social enterprises are poised to grow, as they appeal to entrepreneurs, policymakers and investors who are interested in creating more sustainable, dynamic and inclusive economies.

One barrier to growth remains under-capitalisation – a lack of financial resources. A more inclusive economy, built on social enterprises, requires more investment in business skills (such as marketing and winning new contracts), and better measurement and communication of the social impacts being achieved.

 

This article originally appeared in The Conversation.


Article: Victorian Social Enterprises Boosting Economy with Inclusive Workforce

ProBono Australia feature the Map for Impact project in an article entitled Victorian Social Enterprises Boosting Economy with Inclusive Workforce.


Media Release: Victoria is Australia’s Social Enterprise Champion

A new report detailing the impact of the growing Social Enterprise sector has found that Victoria’s 3,500 social enterprises contribute more than $5.2 billion to the Victorian economy.

Minister for Industry and Employment Ben Carroll visited the offices of The Big Issue – one of Australia’s largest social enterprises – to learn more about their busy Christmas period and to release the Map for Impact: Victorian Social Enterprise Mapping report and website. (See www.mapforimpact.com.au/ )

Developed by the Centre for Social Impact at Swinburne University of Technology, the report and website are key outcomes from the Victorian Government’s Social Enterprise Strategy. The report identifies Victoria as the Australian centre of social enterprise, with more than a quarter of Australia’s social enterprises based in the state.

The Map for Impact report shows that the sector generates around 60,000 jobs, with more than 25 per cent of these jobs addressing the needs of disadvantaged people with barriers to employment.

With more than 50 per cent of social enterprises run by women, the report also found the sector provides jobs for more than 12,000 disabled Victorians, 4000 jobs for long term unemployed people and 985 jobs for indigenous Australians.

Minister Carroll also welcomed a great example of social procurement by Australia Post, which will see the Big Issue’s Women’s Subscription Enterprise process thousands of children’s letters addressed to Santa Claus this Christmas.

The Women’s Subscription Enterprise employs 150 disadvantaged women in Melbourne, Sydney, Adelaide and Perth, providing a job and income as well as access to training, mentoring and support. The enterprise is responsible for packing magazines distributed to subscribers and also engages in external contracts with customers such as Australia Post.

Quotes attributable to Minister for Industry and Employment Ben Carroll

“Congratulations to the Centre for Social Impact at Swinburne University of Technology, for identifying and characterising Victoria’s huge network of diverse social enterprises. Many social enterprises are giving disadvantaged people the opportunity to share in Victoria’s impressive growth through the dignity of a job. These opportunities are critical to our fair and inclusive economy.”

“The Map for Impact report is a key outcome from the Victorian government’s Social Enterprise Strategy,  the first of its kind in Australia, which will maximise opportunities for social enterprises by improving access to markets, raising awareness and building skills across the sector.”

“The Andrews Labor Government strongly supports the social enterprise sector and congratulates The Big Issue on its commitment to employing disadvantaged Victorians.”

“The Big Issue is one of Australia’s longest-running and most significant social enterprises. At least 6500 Big Issue sellers have sold more than 11 million magazines since 1996, generating $26 million in income for the vendors.”

Weblink to Map for Impact website and Report: www.mapforimpact.com.au/