Social Traders has released the most comprehensive analysis of the sector to date, highlighting its significant contribution to the economy and communities. The report reveals that social enterprises generate $16 billion annually for the economy, create 89,000 jobs for disadvantaged groups, and invest $5.7 billion in community impact.
The 2024 Report on Identified Social Enterprises (RISE) analysed data from over 5,795 social enterprises, nearly half of the estimated 12,000 operating across Australia. This extensive research sheds light on the resilience and potential of the social enterprise business model, blending profitability with purpose.
“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,” said Social Traders CEO Tara Anderson. “They prove that doing good and doing business are not mutually exclusive.”
Key Insights from the Report
The report underscores the financial sustainability and societal impact of social enterprises:
- 86% of revenue comes from trade, compared to traditional charities which rely on 68% of revenue from non-trade sources such as donations or grants.
- 23% of social enterprises are fully self-funded through trade alone.
- 68% reported a net profit, outperforming small businesses (57%) and charities (62%).
- Contributions include 15.78 million hours of paid employment, $230.9 million in community goods and services, and 1.2 million tonnes of waste diverted from landfill annually.
Social Traders is using the report to advocate for greater government support, urging the Federal Government to adopt a National Social Enterprise Strategy and a Commonwealth Social Procurement Policy.
“Imagine what would be possible if social enterprises played a bigger role in the economy,” Anderson said. “If government policy were introduced, as we’ve seen in countries like Scotland, the sector could grow significantly, generating an additional $1 billion annually in community investment.”
Social enterprises are currently supported by state-level procurement strategies in Victoria and Queensland, but the sector lacks cohesive national backing.
“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,” Anderson said.
The report highlights the momentum behind social enterprises, which are featured in major federal discussions such as the Employment White Paper and the Economics Committee final report on economic dynamism. Social Traders hopes the data will inspire policymakers, investors, and philanthropists to further support the sector’s growth.
“As we combine datasets for the first time, our hope is that this report will empower policymakers, researchers, investors, and intermediaries to better understand and support the vital contributions of social enterprises,” Anderson said.
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