- ST’s perspective on the Australian social enterprise sector
To tackle Australia’s economic and social challenges, new approaches to doing business and social change are required. Social enterprise offers a new approach. Social enterprise brings together the best of business and community development. Social enterprises operate for more than profit alone; they exist to break the cycle of disadvantage by creating innovative solutions to social, cultural, economic and environmental issues. Social enterprise can be found in every industry of the Australian economy, in small communities and large institutions and their efforts are helping to solve a wide variety of social problems. Social enterprise as an idea is on the cusp of emerging from being a niche to becoming a mainstream business model for social change in Australia. Victoria is the leading social enterprise state in Australia.
Already, there are20,000 social enterprises operating in Australia[1]. The number of enterprises is estimated to have grown at a rate of 37% over the past five years. In 2006, commercial (social enterprise) activity represented over 39% of revenue in the not-for-profit sector[2]. While progress has been made at the mirco-level to support social enterprise development by a range of intermediary organisations, corporates and philanthropic foundations, there has been only fragmented and ad-hoc progress at the macro policy level.
To accelerate their growth, social enterprises in Australia need to have a voice and be more easily identified, have access to market opportunities, support services and appropriate capital so they can grow to their full capacity and achieve scale appropriate to their businesses and missions. The latest social enterprise census has highlighted gaps in the eco-system related to skills, governance, markets, capital and awareness. Bridging these gaps has the potential to significantly increase the scale and contribution of social enterprise to create a more inclusive society where business is used for good and wealth is shared more fairly.
Social enterprises are also seeking more coordinated advocacy and clearer messages to both governments and the public in relation to the benefits and needs of social enterprise. Governments at all levels are engaging in an ad-hoc way with social enterprise, social procurement and social impact investing with many different approaches and priorities emerging, but interest is increasing. It is clear that if social enterprise is to become part of the mainstream, then social enterprise leadership is required to inform and influence the creation of a more coordinated macro policy agenda at all levels of government.
Given this context, Social Traders believes that there is an opportunity to build on the current momentum and increasing interest in social enterprise and social procurement from government, business, philanthropic and the community sectors. As the leading social enterprise development organisation in Australia, Social Traders’ vison and strategy for social enterprise are designed to build on the progress achieved over the last seven years and capitalise on this momentum tohelp launch social enterprise into the mainstreamby 2025.
- Social Traders’ 2025 vision for social enterprise& Ambition (Mission) to 2020
“By 2025 social enterprise will contribute significantly to the Australian economy comprising 4% to 5% of GDP and employing over 500,000 Australians.
Business and government will procure responsibly from sustainable social enterprises and Australian consumers will have the ability to make social enterprise purchases via a national social enterprise certification system.
Australian social enterprise will identify as a new industry sector[3], speak with a coordinated voice and be recognised for its collective contribution to creating a fairer society and economy.
Championed by Government, a social enterprise strategy will provide a strong enabling environment. This will ensure that gaining access to business skills, appropriate capital and markets is readily available for social enterprise to start or grow.
The number of social enterprises will increase from 20,000 to 30,000, and the economic growth generated by social enterprise will provide a sustained increase in the workforce participation rate.”
Rapidly accelerate the importance of social enterprise and social procurement in Australia to government and other partnersby demonstrating the potential of social enterprise to create jobs for marginalized groups, increase access to services and strengthen local communities and economies.
- Strategic Objectives to 2020
Our threeobjectives focus on creating a moreenabling eco-system where social enterprise can start, grow and generate more impact.
- Grow the visibility, voice and value of social enterprise
- Build a pipeline of innovative and viable social enterprises
- Open new government and corporate markets to social enterprises
- Values
Our values and personality traits guide and inform our approach and decision making at all levels of the organisation. They provide the framework and behavioral approach that unites us around a common purpose and define our culture and approach to working with others.
ASTUTE / TRUSTED / CHALLENGER / COMMITTED / INDEPENDENTKnowledgeable Influential Genuine Collaborative Resourceful Professional Trustworthy Innovative / •
- Key strategies to support implementation of the strategic objectives
The following strategies are designed to create a more enabling environment that increases the supply of viable social enterprises, creates new market demand for social enterprises and increases the voice, visibility and influence of social enterprise.
Grow the visibility, voice and value of social enterprise
Establish Social Traders as the voice and advocate for social enterprise
Facilitate social enterprises to inform and shape the policy agenda and future direction of social enterprise through increased engagement with social enterprises, research, program innovation, conferences, awards and thought-leadership
Collect and publish the definitive data on the scale, diversity and social and economic value of social enterprise in Australia
Grow the understanding of social enterprise through campaigns, events, information and resources
Empower social enterprises to promote themselves and grow their visibility
Build a pipeline of innovative and viable social enterprises
Quadruple the reach of the Crunch to acceleratenew and growing social enterprises in Victoria (3 fold increase) and NSW (maintain) to become investment- and market-ready
Create a sustainable Social Investment Portfolio (SIP) with a capital base of $4.25 to $5 million to invest in and support high-growth potential early-stage social enterprises
Provide tailored advisory services on a fee for service basis to social enterprise clients
Open new government and corporate markets to social enterprises
Scale Connect to deliver $100 million in new revenue for certified social enterprises from government ($80 million) and corporate ($20 million) buyers
Build a network of government and business members that are actively engaging in social procurement
Provide tailored advice to corporates and governments on how to implement social procurement practices and policies
- Initiatives – integration
The following strategies are designed to increase the efficiency, effectiveness and sustainability of Social Traders services, programs and collaborations.
Program Linkage and Integration initiatives
Develop pathways for social enterprises to easily transition into and out of programs
Expand opportunities and develop a matching system for skilled mentors to coach social enterprises as part of all programs
Organisation-wide Integration initiatives
Build the Social Traders brand to be the go-to organisation for social enterprise services, expertise and thought-leadership
Develop and promote a national system for certifying social enterprise sellers
Strategically manage key partner and stakeholder relationships to maximize value for mutual benefit
Evaluate and measure the outcomes and social impact of key initiatives and programs
- Funding Strategy to 2020
To implement the strategic plan, Social Traders plans to invest $26 million over 4 years to 2020 with 50% of funds raised from government and matched from partners, social enterprise clients and Social Traders reserve.
Secure $13 million in State Government core funding ($12 million in Victoria and $1 million in NSW)
Use core funding in both states to leverage matching funding from partners and clients
Commit up to $1 million of Social Traders cash reserve as part of seeding the Social Investment Portfolio (SIP)
- Key Outcomes and Impact by 2020
Social enterprise visibility, voice and value
- Social enterprise recognised as a viable sector by government, business and the community sectors
- Social enterprise and social procurement is embedded in Government policies and strategies
- Social enterprise census valuing the sector including scale, jobs, contribution to GDP and diversity
- Social enterprises identifying as part of their sector
- Social Traders is the national voice and advocate for social enterprise
More capable social enterprises / Expanded markets and social enterprise sustainability / Increased social impact[4]
- Over 1,500 enterprises improve their business capability and impact potential
- Pipeline of 130[5] investment and market ready social enterprises with at least 50% successfullylaunching/scaling
- Between $4.25 and $5 million of capital to invest in startup and early-stage social enterprises[6]
- $100 million in new revenue for social enterprise[7]
- 40 financial members of Connect
- 500 certified social enterprise ready to supply to corporate and government contracts and consumers
- 1300 jobs including 1000 jobs for marginalised Victorians
- 120 jobs in NSW
- Significant increase in new services for beneficiary groups
- Stronger local communities and economies through increased trading activity of social enterprises
- Key Actions in 2016 to deliver on the strategy
Objective 1: Grow the visibility, voice and value of social enterprise
-Launch and publish FASES II research, the definitive research and census mapping the Australian social enterprise [ June 2016 ]
-Develop a model in consultation with social enterprise leaders and practitioners to facilitate social enterprises to increase their voice and influence over the shape of the future policy agenda [ May 2016 ]
-Advocate for national and state-based Government strategies to recognise the contribution of social enterprise to the social economy and to create a more supportive enabling environment [ongoing]
-Deliver the Good Spender Xmas campaign in partnership with Australia Post [ Oct to Dec 2016]
-Deliver the 2016 Social Enterprise Awards [ Nov 2016 ]
-Deliver the SE Masters Conference– theme ‘Realising the future of social enterprise’ [ June 2016]
-Develop and publish key thought leadership articles bi-monthly and represent social enterprise at strategic events and conferences [ ongoing in 2016 ]
Objective 2: Build a pipeline of innovative and viable social enterprises
-Deliver Crunch Round 6 accelerator in Victoria, supporting 20 enterprises [ Feb to Aug]
-Secure funding and deliver Crunch Round 6 in NSW, supporting 20 enterprises [ Jun to Nov]
-Recruit sponsorship partners and social enterprises for Crunch Round 7 [ June to Dec]
-Assess the feasibility of implementing a Crunch that is tailored to support disability organisations to become NDIS-ready in Victoria [June to Sept]
-Assess the feasibility of implementing a Regional Crunch using a hybrid online/face-to-face delivery model to build the capacity of startup and growth regional social enterprises [Apr to July]
-Secure at least three philanthropic partner commitments to seed the new SIP [ Jan to July]
-Continue to support the active portfolio of enterprises to become sustainable [ ongoing 2016 ]
-Continue to build the pipeline and deliver fee for service advisory projects as part of the revenue diversification strategy[ ongoing 2016]
Objective 3: Open new government and corporate markets to social enterprises
-Grow the network of certified social enterprise sellers to 200 [ongoing 2016]
-Grow the membership base of Connect by 10 new members [ongoing 2016]
-Support members and consulting clients to grow the contract opportunities available to social enterprise sellers [ ongoing 2016]
-Create and implement opportunities and market place events to connect social enterprise sellers and business and government buyers [ongoing 2016]
-Continue to advocate for and support the Victorian government to implement whole of government social procurement policies, practices and targets [ongoing 2016]
-Develop and implement a system for tracking the value and impact of social procurement including employment outcomes for Connect members [June to Sept]
Program Integration Initiatives
-Communicate and promote the linkages and pathways through Social Traders programs and services to partners and social enterprises [ ongoing 2016]
-Improve the packaging and bundling of services and programs to increase their viability with existing partners and grow new partnerships [ongoing 2016]
-Implement the social enterprise seller certification program across all programs [ongoing 2016]
Funding and Organisational Initiatives
-Secure core Government funding in Victoria [ by July 2016) and NSW [ by March]
-Engage partners and social enterprises to seek endorsement for the 2020 strategy [now to June]
-Grow our revenue and funding from partners and clients to maintain our goal to match our core funding [ ongoing 2016]
-Review the organisation structure, capabilities and resourcing to support implementation of the strategic plan [ Mar to Apr]
-Develop a financial and business contingency plan to mitigate against the risk of reduced core funding [ Feb to Apr].
-Consolidate Social Traders’ brand as the social enterprise development leader in Australia through a revamped website, expanded service delivery and thought leadership [ ongoing 2016].
1
[1]2010 Finding Australia’s Social Enterprise Sector: Final Report. Australian Centre for Philanthropy and Nonprofit Studies, QUT & Social Traders. Retrieved from
[2] Productivity Commission, 2010, Contribution of the Not-for-Profit Sector, ResearchReport, Canberra. Retrieved from
[3] Social Traders defines the Social Enterprise Sector as the social enterprises that operate in the sector.
[4] The majority of the social impact will be in Victoria
[5] At least 100 in Victoria.
[6] The majority of the investment will be in Victorian social enterprises
[7] $60 to $80 million for Victorian enterprises