Definitions Of Social Enterprise In Australia
Social Enterprise. Does anyone have the same definition? The short answer is no. In Canada, social enterprise is defined as an emerging dynamic business model that: a) has social, environmental and/or cultural goals; b) trades in competitive markets; and c) reinvests profits for community benefit. The Centre for Social Enterprise has captured all the different definitions in this one image below.
Here at One10, we embrace the social enterprise continuum. We even encourage social enterprises to embrace a for-profit model so that it can find investors to help scale up the operations to have an even greater impact. This is tough to do on a not-for-profit model, but there are ways to finance this type of model.
We are not here to set a definition to social enterprise, but definitely want to broaden Australia’s definition of it. At the moment, the leading social enterprise incubators make people who want to pursue a social enterprise model run it as a not-for-profit or make then give away 50% of profits if they want to claim to be a social enterprise. We think this is silly because of the above continuum. We don’t think there is anything wrong in making profits. And what people decide to do with those profits is up to them. They could actually be making a bigger impact in having a clean, transparent, and ethical supply chain instead of donating 50% of its profits to a NFP that campaigns for ethical supply chains.
For profit business can make a bigger impact by scaling. Michael Porter gave an amazing TED talk in 2009 that reflect our feelings exactly: “Michael Porter admits he’s biased, as a business school professor, but he wants you to hear his case for letting business try to solve massive problems like climate change and access to water. Why? Because when business solves a problem, it makes a profit — which lets that solution grow.”
Green is the new black in investing as billions of dollars pour into ethical funds and a rush of financial products with environment and social themes targets mainstream investors.
Ethical fund assets grew 62 per cent in 2015 to $52 billion, shows the latest Responsible Investment Association Australasia (RIAA) Benchmark Report. The sector has doubled in two years as responsible investing redefines the investment landscape.
Impact Investment Ready, a new initiative to help for purpose businesses and not-for-profit organisations explore potential impact investing activities and opportunities has been launched by Impact Investing Australia and Philanthropy Australia.
The Victorian Government has released a Social Enterprise Strategy, announcing $5 million in funding to further increase the impact of and innovation in the state’s social enterprise sector, build business capacity and skills, and improve market access.
Social entrepreneurship is experiencing some exciting key trends to watch in 2017. What was once a difficult venture to pursue is becoming easier as access to valuable resources increases and as more consumers hold corporations socially responsible.
Right now, not-for-profits all over Australia are competing for Christmas donations and making preparations for the beginning of 2017. What are you going to do differently in 2017?
Social businesses and not-for-profits are coming up with innovative ways to tackle the SDG in anyway they can from finding different approaches to tackling these ingrained and complex issues.
Navigating the social enterprise space as it is currently termed is as confusing as it is exciting. Exhausting as it is energising. Defeating as it is empowering. A perspective from Dr Alicia Kennedy, Founder of Cherished Pets.
Australian not-for-profits take on the toughest social and environmental challenges we face as a nation. You are increasingly providing essential services to our communities on behalf of government, and perform important activities to create a more inclusive, equal and sustainable world. Not-for-profits are an integral part of Australian society and currently employ 10% of the Australian workforce, or more than 1 million people.
Australia’s social enterprise sector is thriving, according to the recently released ‘Finding Australia’s Social Enterprise Sector (FASES)’ 2016 report. Currently, there are at least 20,000 Australian social enterprises in operation, and many of these are between two and five years old. This is in stark contrast to the FASES 2010 survey that found 68% of social enterprises had been operating for over ten years.
We know you’ve been thinking about it for a while now. You’re not a bad person, it’s just on that growing list of ‘Things I need to do when I have a little more time’. We all want to make sure our money is going to the right place, but the brainpower it takes to navigate the investments of our banks and superannuation funds, or trawl through the sources of our energy providers? No. Thank. You.