What is a social enterprise?

A social enterprise is a business that puts people and planet first. They trade like any other business but exist specifically to make the world a better place.

They primarily trade and they exist for a public or community purpose.

Social Enterprise Australia and all state and territory peak bodies in Australia endorse the global standards to define social enterprise. Social Enterprise Australia endorses them because they are collectively owned, clear, and align Australia with the global sector.

They outline that social enterprises do five things:

• Purpose: Exist to solve a social or environmental problem
• Operations: Prioritise people, planet and their purpose over profit in operational decisions 
• Revenue: Have a self-sustaining revenue model
• Use of surplus: Reinvest most of any surplus in their purpose
• Structure: Choose legal structures and financing that protect and lock-in purpose long term.

Types of social enterprise

1. Meeting unmet consumer needs: Providing essential or culturally specific goods/services where government or market providers do not. 
2. First Nations-led for First Nations justice: A First Nations-controlled social enterprise working to create economic, social, or cultural outcomes that advance First Nations justice, self-determination, and community-led solutions. 
3. Advancing charitable or community purpose: Generating revenue to fund charitable activities or community development. 
4. Creating opportunities for community participation: Enabling social connection, inclusion, and local engagement. 
5. Work integration social enterprise (WISE): Providing employment or training pathways for people facing barriers to work. 
6. Promoting ethical consumption and sustainable supply chains: Using ethical sourcing, fair trade, or sustainable production to address social or environmental injustices. 
7. Social and environmental innovation: Pioneering new business models, technologies, or services that address emerging social and environmental challenges. 
8. Strengthening the social economy: Providing services that support social enterprises and other impact-driven organisations.

Why social enterprises matter

There are challenges, areas of public need and political imperative that social enterprises are uniquely placed to respond to. These include:

• Access to decent work for people most shut out of the labour market.
• People-centred services.
• Environmental care.
• Place-based and community-led innovation.

Social enterprises also address product or service gaps, particularly in disadvantaged communities and thin markets.

The social enterprise sector in Australia

It is estimated that there are over 12,000 social enterprises in Australia that make a shared economic contribution of $21.3 billion and account for 1% of GDP.

They employ about 206,000 people, or 1.6% of the workforce; that's about the same number of people as the Arts and Recreation Services or the Mining Industry.

Source: Business for Good: The Size and Economic Contribution of Social Enterprise in Australia (2022).

Challenges and opportunities

Social enterprises have significant potential to contribute to Australia's social, environmental and economic wellbeing.

But they need targeted support to reach their potential.

Because social enterprises sit between traditional business and charity, many fall through the gaps in the support infrastructures that exist. They do the job of both without the enablers of either.

Social Enterprise Australia

Social Enterprise Australia is the national peak body for social enterprise.

We're for an economy that puts people and the planet first, and for unlocking the power of social enterprise to help get us there.

We connect, build and advocate for the sector, and coordinate its national strategy. Our direction is set by the sector, and we provide a bridge for it to partner with the Australian Government and others to grow impact.

What we do

We develop ecosystem-wide infrastructure and partnerships to:

• Connect the ecosystem to plan, act and learn together.
• Build and share sector data, insights and practical supports.
• Advocate for the customers, capital, policy and investment the sector needs.

State and Territory Peak Bodies

Social Enterprise Australia works alongside state and territory peak bodies that advocate for and connect the social enterprise sector in their local areas. Together, these organisations convene the Social Enterprise Peaks Group.

Current state and territory peak bodies include:

• Social Enterprise Council of NSW & ACT (SECNA)
• Queensland Social Enterprise Council (QSEC)
• Social Enterprise Network Victoria (SENVIC)
• Social Enterprise Council of South Australia (SASEC)
• WA Social Enterprise Council (WASEC)
• Social Enterprise Collective of Tasmania (SECTAS)
• Impact North (Northern Territory)

Together, these organisations help strengthen local ecosystems while contributing to a connected and coordinated national social enterprise movement.