When local councils buy from a social enterprise, they’re purchasing quality goods and services that they need at the right price, while generating social or environmental impact in the same transaction. The best part, it’s allocated spend – money that would have been spent anyway, but in a way that creates social value.

There are some local councils already taking the lead in social procurement including Brisbane City Council. Local councils in Australia can play a significant role in growing the social enterprise sector within their jurisdictions, accelerating social and environmental impact for their communities.

Here are several practical steps that local councils can proactively take to become frontrunners in social procurement.

Social procurement policy and targets

Implement social procurement policies that prioritise the engagement of social enterprises in their procurement processes. This involves setting targets or preferences for purchasing goods and services from certified social enterprises.

Internal training and education

Educating staff and councilors about the business for good movement can provide internal confidence in the capabilities and positive outcomes associated with procuring goods and services from local social enterprises. By providing staff access to practical guides and processes that are easy to understand and follow, it can create strong support and sustain the policy in practice.

Capability development

Providing access to tailored supplier readiness programs accelerates the capabilities and capacity of social enterprises, making it easier for local councils to engage with them and help create better outcomes, faster. State governments currently fund accelerator and business development programs which local councils can refer local social enterprises to participate in.

Contracts over grants

Signing contracts with social enterprises provides them with stable foundations to grow their capabilities and continue to win further work. A core feature of social enterprises is that they derive the majority of their income from trade revenue, making them a sustainable business. Low risk, low value spend items can be an effective way to get initial contracts over the line and build momentum.

Measure and celebrate successes

Utilise internal and external communication channels to highlight the positive social and environmental impact of social enterprises operating within local communities. Certified social enterprises also measure and report against set social impact metrics which local councils can include in annual reports.

Cluster development

Facilitate networking events, forums, and conferences that bring together social enterprises, local businesses, community organisations, and other stakeholders. This will encourage collaboration, knowledge sharing, and partnership building, fostering a supportive ecosystem for social enterprises.

Business support services

As purpose-led businesses, social enterprises can benefit greatly from getting access to existing business support services of local councils. Ensuring that social enterprises are aware of upcoming workshops, mentoring, funding opportunities, and tenders can help them navigate the challenges of running a business.

If you would like to build a fairer, more inclusive and sustainable economy by activating your local social enterprise sector, we can help.

Photo credit: Australian Spatial Analytics