Landmark report showcases social enterprise, a resilient business model generating impact on the Australian economy

Social Traders unveils largest-ever national report to mark World Social Enterprise Day

Social Traders, Australia’s industry body for social enterprise and responsible business, marked World Social Enterprise Day with the release of the most detailed analysis of the largest dataset ever collected on the social enterprise sector in Australia.

The analysis reveals that half of the estimated 12,000 social enterprises contribute $16 billion to the economy annually, more than previously estimated. Beyond economic contribution, social enterprises are also directly investing $5.7bn every year on delivering impact to communities and creating an estimated 89,000 jobs for people that would otherwise be shut out of work.

The 2024 Report on Identified Social Enterprises (RISE) combined data from Social Traders certified social enterprises along with Australian Charities and Not-For-Profit Commission data and the Victorian Government’s ‘Map for Impact’ to create a database of 5,795 individual social enterprises – the largest national analysis of social enterprise to date, representing nearly half of the estimated total 12,000 social enterprises in Australia today.

The extensive data analysed in RISE from across the sector unlocked deeper insights into the social enterprise model:

• 86% of total revenue is from trade and only 14% from non-trade sources such as donations or grants – this is compared to traditional charities that derive only 68% of their revenue from non-trade sources
• 23% are entirely self-funded (100% revenue from trade)
• 68% reported a net profit in the most recent financial year – compared to small businesses (57%) and charities (62%).

“Social enterprise is business at its best. They combine the head of a business with the heart of a charity – focusing on creating social and environmental impact. They prove that doing good and doing business are not mutually exclusive. The data paints a clear picture: social enterprises are an effective model for building a fairer and more sustainable Australia,” Social Traders CEO Tara Anderson said.

“As we combine datasets for the first time, our hope is that this report will empower policymakers, researchers, investors, philanthropists, intermediaries and the public to better understand and support the vital contributions of social enterprises.”

The report dives deeper into the impact of the 636 certified social enterprises in Australia, finding every year, they contribute:

• 15.78 million hours of paid employment to beneficiary employees
• 13,000 employment pathway outcomes
• 906,000 hours of employability training
• $230.9 million towards providing community goods and services
• $33.7 million in donations to charitable organisations
• 1.2 million tonnes of waste diverted from landfill.

“Imagine what would be possible if social enterprises played a bigger role in the economy,” Ms Anderson said.

Call for further government support

Social Traders has used the launch of the report to call for Federal Government to introduce a National Social Enterprise Strategy and a Commonwealth Social Procurement Policy that explicitly references support for certified social enterprises.

While there has been momentum growing with social enterprise called out in the recent Inquiry into Workplace Australia final report, the Economics Committee final report on economic dynamism and Treasury’s Employment White Paper, Australia is served only by disparate social procurement strategies in select states, namely Victoria and Queensland.

“For Australia’s social enterprises to thrive and drive a more inclusive, sustainable and equitable Australia, the Federal Government must introduce a Commonwealth Social Procurement Policy that explicitly references and supports certified social enterprises,” Ms Anderson said.

“There are clear examples overseas where government policy is proven to make a significant impact in this sector. When Scotland introduced a social enterprise strategy the sector grew by 16%. If that were to be replicated in Australia, based on this data, we could see close to an additional one billion dollars invested by this emerging sector in community impact.

“To continue and change the impact showcase by our landmark report, we urge the Federal Government to back social enterprise. The time is now.”