Social Traders is here to make social enterprise business as usual. Because it’s the business model of the future. Despite a challenging economic environment, the social enterprise sector looks set to grow again this year.
Social enterprises are businesses just like any other, and in the current economy many are feeling the pressure on their business model, just like most other businesses.
But – we’re also seeing growth across the sector. The resilience of social enterprise is shining through.
Over the last year 74% of certified social enterprises added a new product or service. 64% of certified social enterprises feel their business is more stable than 12 months ago. And, 67% increased the number of people they support.
As the sector grows, we’re seeing more social enterprises wanting to be recognised through certification. Last month was a record high for certification applications. Shout out to GROW Gardens on becoming the 700th certified social enterprise!
Commercial viability through trading revenue is an important part of what makes social enterprises sustainable. In the last year 80% of certified social enterprises increased their trading revenue.
We’re also seeing more people wanting to work with social enterprises. Social Enterprise Finder – the national directory of certified social enterprises – was used over 200,000 times last year.
Over the last 12 months, 42% of certified social enterprises have found it easier to connect with business buyers.
Social enterprise is still too much of a best kept secret. But we are seeing a shift.
85% of certified social enterprises feel the social enterprise model is becoming more familiar to people outside the sector compared to three years ago.
We see it when we’re meeting with Federal and State Governments. We’re not starting our conversations with a social enterprise explainer anymore. Because they know. We’re talking about how they can support the sector, not why.
Just recently, the Federal Government has announced they will pledge $1.2 million in new loans for social enterprises, promising to support businesses combining profit and purpose. The Social Enterprise Loan Fund is Australia's first loan fund designed for social enterprises that support employment pathways, managed by White Box Finance.
We’re focusing even more on the business community this year. We’re in conversation with many leading industry bodies, talking to their members about why they should start buying from social enterprise.
There’s been a shift in the reasons why businesses are joining Social Traders in recent years – from compliance to company values and ESG plans. That’s a positive trend showing a deeper motivation for engaging social enterprises as suppliers.
And in the face of the anti-DEI sentiment from the US, we’re equipping our business members with the evidence about why it’s not the time to pull back. And most members aren’t. In fact many are doubling down. You can read our blog on that here.
Raising awareness of social enterprise and getting you more customers and contracts is what we’re here for. Events and publications is one way we do that. Last year almost 3,000 people attended a Social Traders event.
Next up is the launch of the state of social procurement insights from our Impact Report, on March 25. There are some record-breaking figures on both social procurement spend and impact created. If you haven’t already registered for the launch session, you can register today.
For now – onwards in our shared mission to make social enterprise business as usual.
Tara Anderson
CEO
Social Traders