Unlock public value through certified social enterprise
Since 2008, Social Traders has been advocating for the social enterprise sector and supporting governments to shape their economic and social policies, leveraging certified social enterprise to unlock public value.
Why social enterprise
Social enterprise can help governments to unlock public value, drive employment outcomes for the long term unemployed, and tackle entrenched disadvantage. They are innovative businesses that deliver public benefit over private gain. Backing social enterprise ensures that public funds are being used for public benefit.
What is a social enterprise
A social enterprise is business at its best. They are innovative businesses that work to create a fairer and more sustainable world. There are an estimated 12,000 social enterprises in Australia contributing to 206,000 jobs and $21.3 billion to our economy.
Social enterprise does three things:
- has a defined primary social, cultural or environmental purpose consistent with a public or community benefit
- derives a substantial portion of income from trade
- invests efforts and resources into purpose such that public/community benefit outweighs private benefit.
Now is the time for Australian governments at Federal, State and local levels to leverage the social, environmental and economic value of social enterprise to support multiple government policy agendas.
Images (left to right): Reground, FoodLab Sydney, ReNew Property Maintenance (top), Fruit2Work (bottom), Chapter 1 Employment (bottom)
A social enterprise strategy
Social enterprise strategies offer a mutual strategic pathway to direct resources between government and social enterprise, for positive impact. It helps achieve government policy agendas and objectives in their given jurisdiction.
Social Traders has undertaken a review of social enterprise strategies from five different jurisdictions around the world to understand the key themes, motivations, formats, investments and actions to identify and understand what best practice and the development of social enterprise strategies might look like.
We also considered international research and Organisation for Economic Co-operation and Development (OECD) recommendations which provides additional evidence for the role of social enterprise strategies in driving a social economy, which includes social enterprise, to thrive at international, national and local levels.
Social procurement policy to unlock public benefit
Social procurement is procurement for impact. When governments embed social enterprises into supply chains, they can directly address societal challenges, create jobs for marginalised communities or contribute to positive environmental impact.
Social procurement is a strategy to align and deliver multiple strategic economic and social objectives across government. By leveraging the $140b+ annual government procurement spend, social and economic outcomes can be achieved through sustainable market activity.
Image: Good Sammy Enterprises
Certification: A recognised national standard
Since 2017, Social Traders has been certifying social enterprises in Australia. Governments around Australia are using our certification as a recognised standard to de-risk procurement and to widen grant and program eligibility to include social enterprises certified by Social Traders.
Certification is critical to clearly define and elevate the social enterprise sector, to identify businesses genuinely delivering public benefit through independent trade, and to build business, consumer, and stakeholder confidence in the unique and innovative social enterprise brand. Our certification is robust, world-leading and designed for the Australian market.
Images (left to right): Collingwood Children’s Farm (top), Dismantle Inc (bottom), The Bridge Inc, Traveller’s Aid Australia, Circonomy (top), WV Technologies (bottom)
Data to inform policy
We foster collaboration, innovation, and a deeper understanding of social enterprises operating across Australia to drive informed decision making and create a thriving sector. The sector data we collect and steward is being used in multiple ways to help achieve positive outcomes. One of the ways governments are using data is to provide insights on various social enterprises in their different jurisdictions. View our latest profile of certified social enterprises which unpacks the economic and impact contribution of certified social enterprises nationally, collected between 2018-2023.
Benchmarking your impact
Social Traders can help quantify social procurement impact at the individual agency level. The report provides measurement and evaluation to inform decisions on who, where and how to allocate resources for impact through social enterprises.
We uniquely convert expenditure into tangible impact via comprehensive data collection. Out impact reports offer:
- Six clear impact indicators to communicate tangible outcomes
- Year-on-year social procurement spend tracking
- Geographic breakdown of engaged social enterprises
- Beneficiary group supported with social procurement spend
- Type of social enterprises engaged
Get in touch to learn more about the report and tailoring it to your needs.
We’re supporting government to unlock public value
Social Traders has been working with governments around Australia for over 10 years. We’re a trusted partner and adviser on the social enterprise sector and we provide expertise in social procurement.
Commonwealth government
Workforce Australia Review
The Australian Government is actively considering social procurement. A Commonwealth Social Procurement Framework has been recommended in the Workforce Australia Review and the Inquiry Report from the Standing Committee on Economics.
House of Representatives Standing Committee on Economics
Social Traders provided a submission to the inquiry on economic dynamism, competition and business formation from the House of Representatives Standing Committee on Economics.
Commonwealth Procurement Rules
The Commonwealth Procurement Rules are under review. Social Traders is speaking with the Australian Government Department of Finance and Treasury about short- and long-term changes. We’ve also provided social procurement policy advice to the Department of Finance at their request.
'Working Future' White Paper
The Australian Government’s 'Working Future' White Paper released in September 2023 has a section dedicated to ‘Backing social enterprise’ signalling the government's priorities and commitment to the growth of, and collaboration with, the social enterprise sector as the future of Australia’s Employment Services system.
Australian Government 2024 Budget
The Australian Government 2024 Budget included a package for Employment Services Reform and Small Business Support, ‘providing $21.9 million to support social enterprises and employers to engage job seekers through paid employment placements of up to six months. This includes grant funding of $1.5 million over two years to support the certification of an expected 500 Work Integrated Social Enterprises.’
Our 2024 pre-budget submission
Tackling Entrenched Community Disadvantage package
The 2023 Australian Government Budget announced millions of dollars for social enterprise as part of their Tackling Entrenched Community Disadvantage package.
State governments
Queensland
The Queensland Government is a member of Social Traders and has a social enterprise strategy in place. This social enterprise strategy includes an investment of $8m into a Social Enterprise Jobs Fund for social enterprise capacity building, market development and finance. As well as accessing Social Traders database through a whole-of-government membership, the Queensland Government undertook a pilot project where five government departments are working with us to grow their social procurement capability.
The Queensland Government also provided funding for Queensland social enterprises to get certified with Social Traders. Alongside government support at state level, all Queensland Local Governments now have access to certified social enterprises through an agreement between Social Traders and Local Buy.
Victoria
As the first state government to join Social Traders membership in 2018, the Victorian Government has a social enterprise strategy currently in place since 2016.
The Victorian Government Social Procurement Framework was introduced in 2018, to leverage its everyday procurement spend to deliver social and sustainable outcomes that would benefit the Victorian community. The framework has been rolled out across 275 government agencies and is a key driver of social procurement adoption amongst businesses.
New South Wales
The NSW Government has been a member of Social Traders since 2020. To grow social procurement activity, it also amended its procurement guidelines to incorporate social enterprises as a type of supplier that they are encouraging business to engage with.
In 2024, the State launched an inquiry into the procurement practices of government agencies in New South Wales and its impact on the social development of the people of New South Wales.
Our submission into the NSW Procurement Inquiry
South Australia
The Department of Human Services (SA) joined Social Traders as a member in 2024 and has utilised Social Traders certification as eligibility criteria to enable access for certified social enterprises to access grant funding regardless of legal structure. Media release from SA Premier
The SA Office for Small and Family Business made the SA Government’s first major investment into the SA social enterprise sector in 2023, funding the multi-year Business for Good program as part of the Small Business Fundamentals grant, led by Social Traders in partnership with the South Australian Social Enterprise Council and Collab4Good.
Australian Capital Territory
The ACT has been a member of Social Traders since 2021, and actively encourages ACT Government departments and agencies to engage with social enterprises as one way that Government Buyers may choose to achieve the Diversity, Equality and Inclusion procurement value.
In late 2023 the ACT Government announced their investment into supporting Canberra’s growing social enterprise sector through a pilot Social Enterprise Grants Program which is being rolled out in 2024.
Endorsements by supporters
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“The sector has achieved a great amount over recent decades, but there is potential to do so much more with the right regulatory settings and the right partnerships with governments … Now is the time to leverage for more… Social procurement is so important, and certification will be one of the first steps.” Dr Daniel Mulino MP, Member for Fraser and Chair of the Standing Committee on Economics |
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“If the Federal Government is truly committed to achieving their social and economic policy objectives, social procurement is an ideal mechanism to use. We urge the Federal Government to engage in a meaningful and direct way with Social Traders, who will provide credible information, a sustainable business model and robust economic justification.” Vedran Drakulic, CEO, Gandel Foundation |
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“What you do has support from across the parliament. For those on the business side, you’re celebrating businesses. And for those who go into politics to help the most disadvantaged, you’re doing just that. The work of social enterprise spans the economy.” Dr Andrew Leigh MP, Assistant Minister for Competition, Charities and Treasury |
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“The Government is backing social enterprises to further help people facing labour market disadvantage. Social enterprises are critical to improving employment outcomes for marginalised cohorts in local communities across Australia … The Government’s reform direction is to draw on the expertise of the social enterprise sector and build capacity to improve the labour market outcomes of people who experience entrenched disadvantage.” Australian Government White Paper on Jobs and Opportunities |