Start-ups and small businesses will be able to raise money through crowd-funding under new government measures.

This news is welcomed by social enterprise start-ups who would benefit from more funding.

Legislation introduced to federal parliament on Thursday allows unlisted public companies with less than $25 million in assets and turnovers to raise $5 million in funds over a year.

“The framework will enable Australia’s innovative early-stage businesses to obtain the capital they need to turn good ideas into commercial successes and the jobs that will follow,” Treasurer Scott Morrison said.

Many social enterprises struggle to find funding for their start-ups and are often looking for government help.