Social enterprise size and impact revealed
23 November 2022 at 3:53 pm
Social enterprises contribute over $20b to the Australian economy and employ as many people as the mining industry, a new report finds, sparking calls for greater government support.
Social enterprise plays a significant role in Australia’s economic and employment climate, new research has found.
Released today, the Business for good: The size and economic contribution of social enterprise in Australia report found that social enterprises contribute $21.3 billion to the Australian economy each year, comprising approximately one per cent of the national GDP.
With more than 12,000 social enterprises now operating in Australia, the research suggests that one in 60 or over 206,000 Australian jobs are in these for-purpose organisations – rivalling the employment capacity of key industries including mining and arts and recreation.
“Australians may not realise it, but social enterprise is part of our daily life and our economy,” said Jess Moore, CEO of Social Enterprise Australia, the national beak body that commissioned the report.
“These businesses for good have many faces – a local café training and employing survivors of domestic violence, a super fund that only invests in things that support people and planet, or a provider of quality affordable housing.
“While these findings are big news, the true value of social enterprise is so much more. It has the potential to tackle some of the big social and environmental challenges we face, and tackle them at the source.”
There is no legal structure called social enterprise in Australia, with each state offering its own definition, requirements and support.
Social Traders, which certifies social enterprises across Australia, defines these businesses for good as organisations that have a defined community cause; derive a large portion of its income from trade; and invest efforts and resources into its purpose so that public benefit outweighs private gain.
Social enterprises also traverse a broad spectrum of industries, including childcare, hospitality, housing, education and insurance, among many others.
Moore said the economic contribution and size of social enterprises across the country warrants greater government partnership and support. Social Enterprise Australia is pushing for a cohesive national strategy to grow social enterprise and increase social and environmental impact.
“Off the back of this research, we call on the federal government to work with our sector on a national strategy to unlock the full potential of social enterprise. This can help move Australia to an economy that puts wellbeing first.
“The social enterprise sector is larger than the arts and recreation services sector in terms of economic contribution, and about the same in terms of jobs. Both drive social good, but only one of these sectors has a dedicated minister and government department, and associated government supports.
“Without a federal government strategy, Australia risks falling behind other countries where social enterprise drives positive social and environmental change. There are an average 466 social enterprises in Australia per 1 million people, compared to 1,102 per million people in Scotland, 571 per million in Hong Kong and 528 per million in New Zealand.”
The Business for good report was funded by the Lord Mayor’s Charitable Foundation and aims to understand the size and economic contribution of social enterprise in Australia.
