Each year we produce a report on the sector. This year's report Social enterprise: Powered by trade and driven by purpose focuses on a central question "What role does trade revenue play in enabling social enterprise impact and resilience?"
We analysed data from more than 750 certified social enterprises, alongside in-depth interviews with social enterprise leaders, to answer these four questions:
- Is social enterprise trade revenue growing over time?
- How does growth in trade revenue link to growth in impact?
- To what extent do social enterprises use trade revenue (versus grants/donations/other) to cover their impact costs?
- What are the characteristics of social enterprises that grow trade revenue, expand impact and remain profitable at the same time?
The report findings provide a clear picture of how trade revenue is growing, fuels impact and is key to resilience in the sector.
When social enterprises grow their trade revenue, they also grow their capacity to employ, to serve and to solve some of Australia’s most pressing challenges.
The report also shows there are many ways to run a resilient social enterprise that increases trade revenue and impact while being profitable.
Key insights from the report
Trade revenue up 10%
71% also increased impact spend
Impact is funded in different ways
Our recommendations
If we want to build a fairer and more inclusive economy, growing social enterprise trade revenue must be at the heart of policy and practice.
We invite policymakers, funders, researchers, investors and business leaders to join us in enabling trade as the engine of the social enterprise sector.
Based on the report, the following are recommendations to fuel social enterprise resilience:
- Recognising social enterprise as a distinct part of the economy
- Investing in social enterprise trade capability
- Embedding social enterprise in procurement policy
- Encouraging revenue diversity
- Designing smarter funding
- Targeting growth pathways
- Continuing to track the data