Beyond the myth of sustainability: lessons from failure in social enterprise

This article draws on two learning webinars convened by Think Impact, bringing together social enterprise practitioners and funders to reflect openly on failure. Despite approaching the topic from different angles, both groups reached many of the same conclusions.

The article argues that when social enterprises struggle, the cause is often structural rather than a failure of leadership or management. Funding systems frequently do not recognise the true cost of creating social impact, particularly for work integration social enterprises (WISEs), organisations that create jobs for people who face barriers to employment. The article also challenges common assumptions about growth and sustainability, questioning whether full financial self-sufficiency is a realistic or even fair expectation for organisations already asked to deliver social outcomes and run a viable business simultaneously.

A recurring theme is the importance of honest relationships between social enterprises and funders, and the value of talking openly about what is not working. The article is most relevant to social enterprise leaders, funders and policymakers working in the Australian context.