New report reveals 10% trade revenue growth for purpose-driven businesses, proving profit and purpose can co-exist and must, for an impact economy

Social Traders, Australia’s industry body for social enterprise and social performance, today marked World Social Enterprise Day with a report proving trade revenue is growing among social enterprises and fuels their impact.

The report “Social enterprise: Powered by trade driven by purpose”, supported by the Paul Ramsay Foundation, analysed over 200 data points on more than 750 certified social enterprises.

Findings reveal that trade revenue among social enterprises grew by 10% over five years, demonstrating that purpose-driven businesses are not only holding steady but thriving despite challenging market conditions.

The landmark report also unlocked deeper insights into the social enterprise model:

• 71% of social enterprises that increased their trade revenue also increased their impact.
• Impact funding models vary: 36% fully through trade, 41% blended trade/non-trade and 23% through non-trade revenue
• Diversification of offerings and customers provides stability, cushions against market shocks and opens new opportunities for impact.
• Scale supports resilience, but there is no single model for success.

Tara Anderson, CEO Social Traders emphasised, “When social enterprises grow trade revenue, they invest in impact. The key is balance - using the market to sustain the business while keeping purpose at the core. If we want to build a fairer and more inclusive Australian economy, growing social enterprises must be at the heart of policy and practice.

Social enterprises must be recognised as a distinct model in the economy: not charity with business on the side, nor business with a social add-on, but an integrated blend of business and impact.”

Growing national database

There are an estimated 12,000 social enterprises in Australia. The report also featured the latest insights on the largest national database of identified social enterprises, launched last year. Since 2024, the database has grown from 5,795 to 6,376 social enterprises.

Among the social enterprises identified:

• Trade is the dominant income source, accounting for 84% of total revenue.
• More than one in five (22%) rely solely on trade to fund their operations.
• Six in ten (60%) are operating at a profit.

Social Traders estimates that 12,000 Australian social enterprises spend $5.1 billion every year to deliver impact and create 84,500 jobs for people facing barriers to work.

Changing the economy

Earlier this month, Social Traders hosted a sector event at Parliament House. Assistant Minister for Productivity, Competition, Charities and Treasury, Dr Andrew Leigh MP, stated:

“Productivity turns potential into prosperity. Social enterprises do that every day. They take human potential that the market overlooks and turn it into prosperity for everyone.

“Let’s help social enterprise flourish across Australia. Because the productive power of purpose isn’t just good ethics. It’s good economics.”

Social Traders invites policymakers, funders, researchers, investors and business leaders to join them in enabling trade to fuel the resilience of the social enterprise sector.

Recommendations:

• Recognising social enterprise as a distinct part of the economy.
• Investing in social enterprise commercial capability.
• Embedding social enterprise in procurement policy.
• Scaling data collection, impact tracking and risk mitigation through certification to inform policy and program design.

“Together, we can build a future where every dollar spent helps create jobs, strengthens communities and cares for the planet. Let’s make social enterprise the dominant business model for a fairer and more sustainable Australia. For all of us.” – Tara Anderson, CEO Social Traders.