Key terms

A respected member of an Indigenous community who has gained recognition as a custodian of knowledge and wisdom. Elders are responsible for passing down cultural knowledge, traditions, and practices to younger generations.

An individual who identifies a need or opportunity in the market and starts a business venture to address it, taking on financial risks in the hope of profit. Entrepreneurs are innovative, proactive, and willing to embrace uncertainty.

It refers to a set of criteria used to evaluate how a company or organisation performs in terms of its environmental impact, social responsibilities, and governance practices. These criteria help assess the sustainability and ethical impact of a business on the broader community and the environment.

Investment in exchange for a stake in an organisation, usually in the form of shares, representing ownership of a portion of the company's value. Non-profit organisations are unable to access equity investment because they are not privately owned.

A strategy focused on selecting investments that avoid negative impacts on society and the environment, prioritising companies and projects that align with positive social and environmental values.

This is the practice of leading by doing what is morally right, fair, and honest. Ethical leaders make decisions that respect the rights and dignity of others, set a positive example, and prioritise integrity and ethical behaviour in their actions and decisions.

A researched assessment to gauge the potential for a project’s or enterprise’s success, considering costs, personnel, risks, and context.

National-level government agencies and departments that determine social enterprise policy and funding.

An institution or entity that facilitates the channelling of finance between the supply and demand-sides of a capital market. Includes banks, credit unions, crowdfunding platforms, and specialised financial organisations that offer tailored products and services for social enterprises. Higher education institutions: Universities and institutes that offer courses, research, and incubation programs related to social innovation, entrepreneurship, and enterprise.

The ability of an organisation to continue its operations and impact over the long term, by balancing social, environmental, and financial considerations in its decision-making and resource allocation.

The process of providing funds for business activities, making purchases, or investing. Financing can come from a variety of sources, such as banks, investors, or personal savings, and can take different forms, such as loans, credit, grants, or equity investments.

A respectful term used to refer to Aboriginal and Torres Strait Islander peoples as the original inhabitants and sovereign nations of Australia.

Regular, unchanging expenses a business must pay, such as rent, salaries, and insurance.

The individual or group of individuals who start a new organisation or enterprise, often serving as its initial leaders and visionaries.

Money given by individuals, organisations, or governments for a specific purpose.

The rules, practices, and processes by which an organisation is run, including its policies. Critically, governance includes an explicit articulation of how decisions are made. Usually enacted through a governing group or board.

A conditional or unconditional gift of money with no expectation of financial return.

Universities and institutes that offer courses, research, and incubation programs related to social innovation, entrepreneurship, and enterprise.

The significant, positive change that results from an action, enterprise, project, program, or policy. In the context of social impact work, impact refers to the measurable improvements in the lives of individuals, communities, or the environment that can be attributed to a particular intervention or initiative.

An economic system that prioritises the creation of positive social and environmental impact. In an impact economy, businesses, investments, and economic activities are designed and evaluated based on their ability to generate measurable benefits for people and the planet, while also being financially sustainable. The impact economy seeks to redirect the flow of capital, resources, and talent towards solving pressing social and environmental challenges, and to create a more equitable, resilient, and regenerative economic system.

A strategy that expands the pool of funds available for social and environmental purposes, encouraging innovative approaches to persistent problems. It recognises that the challenges facing society are too large and complex to be solved by government, philanthropy, and not-for-profit organisations alone.

Investments made into organisations, projects or funds with the intention of generating measurable social and environmental outcomes, alongside a financial return.

Individuals and institutions that invest in social enterprises with the intention of generating both social and financial returns.

The process of quantifying the social, economic, and environmental effects of an organisation's activities, often in relation to specific goals and the influence of other factors.

A framework that describes how an organisation's activities lead to positive social or environmental changes. It outlines the resources and actions needed, the outputs and outcomes expected, and the ultimate impact the organisation aims to achieve in addressing a specific problem or need. ‘Impact model’ is often used interchangeably with ‘theory of change’.

The different sources of revenue for a business, such as grants, sales, or fees.

A legal structure commonly used by not-for-profit organisations in Australia. Incorporated associations are registered under state or territory legislation, which varies across jurisdictions.

The legal process of creating an organisation as a separate legal entity from its owners or founders. When an organisation is incorporated, it becomes a distinct legal "person" with its own rights, responsibilities, and liabilities, separate from those of its shareholders or members. Incorporation offers several benefits, such as limited personal liability for owners, the ability to raise capital through the sale of shares, and potential tax advantages.

A corporation registered under the Corporations (Aboriginal and Torres Strait Islander) Act 2006 (Cth) (CATSI Act). It is a structure designed for Indigenous organisations and takes into account Indigenous customs and traditions.

The practice of organisations, businesses, and governments purchasing goods and services from Indigenous-owned businesses, as a means of supporting Indigenous economic development and self-determination.

The process of creating, developing, and implementing new ideas, products, services, or methods that provide value or solve problems in original and improved ways. Innovation can involve entirely new inventions or significant enhancements to existing ones, and it often requires creative thinking, experimentation, and a willingness to take risks.

The network of organisations, institutions, and individuals that support the development and growth of enterprise, including government agencies, funders, intermediaries, accelerators, incubators, and educational institutions.

Centres that foster creativity, collaboration, and experimentation to develop new social enterprise ideas and solutions.

An organisation or individual that acts as a bridge between different parties, helping to facilitate communication, coordination, collaboration, and the exchange of information, knowledge, and resources. In the context of social enterprise, intermediaries often play a crucial role in connecting funders, investors, service providers, communities, sellers, and buyers to support the development and implementation of effective solutions.

An employee within a company who takes on the role of an entrepreneur by developing new ideas, products, or processes as if they were running their own business. They drive innovation and help the company grow by acting creatively and proactively from within the organisation.

The complex system of social relationships and responsibilities that govern Indigenous societies, based on family ties, shared experiences, and cultural obligations.

The legal framework that determines the rules and regulations for how an organisation will operate. For social enterprises, there are various types available, each with pros and cons

City or local-level authorities that have a specific influence on community-based social enterprises and localised initiatives.

When an organisation's expenses exceed its income.

Summarised accounting data (balance sheet, cash flow, and income statement) prepared for a charity's management and Board.

A senior executive responsible for the day-to-day operations of an organisation, often reporting to the CEO or board of directors.

Brokers that link social enterprises with customers to facilitate and grow trade. They may use a variety of platforms and means of intermediation, and specialise in different customer segments including retail, business-to-business, public sector procurement, or outcome purchasers.

The way an organisation communicates with stakeholders, concluding promotions, advertising, building brand loyalty, and market research.

The different methods used to make products and services available and accessible to customers, such as wholesalers, retail agents, or catalogues.

The process of gathering information to test market demand and tailor goods and services to customer needs, using surveys, interviews, focus groups, and competitor research.

A legal document prepared in the formation and registration process of an organisation.

An experienced and trusted advisor who provides guidance, support, and encouragement. They can also act as a role model, sounding board, and source of constructive feedback.

The established set of attitudes, beliefs, and assumptions held by an individual or group that shape their perspective, decision-making, and actions. Mindsets influence how people interpret and respond to situations, and they can be positive, negative, or neutral.

A concise explanation of an organisation's reason for existence, describing what it does and for whom.

Monitoring and Evaluation (M&E) is a systematic process of collecting and analysing data to assess the effectiveness and impact of any given intervention. M&E is often based on an intervention’s impact model. The role of learning is increasingly being elevated in M&E practice (often changing the acronym to MEL, with the ‘L’ being for ‘learning’) to reflect the idea that M&E should be developmental alongside enabling accountability.