It’s understandable that you might be confused by this newfangled term. Social enterprise is a fairly new concept in Australia and many people don’t know exactly how it works.
Basically, it refers to an organisation that uses a business model of buying and selling goods or services but, unlike a traditional business, its prime motivation is to fund or support social causes.
Such causes might include reducing poverty, providing employment for various societal groups or tackling environmental problems. Some Social Enterprise Organisations (SEOs) do make a profit, but this generally isn’t the main reason for being and profits often go back into the business or to a charitable cause.
Organisations like these can make a real difference, and do so in a sustainable way – so considering a social enterprise model might be the first step in creating lasting change in your community.
Here are some interesting facts about Australian social enterprise according to the “Finding Australia’s Social Enterprise Sector (FASES):
- There are an estimated 20,000 social enterprises in Australia.
- This number has grown by 37% over the past 5 years.
- 73% had been operational for at least five years; 62% are at least 10 years old.
- Australian social enterprises operate in local and international markets.
- 39% of all income in the NFP sector is generated through trading activity, equating to $22 billion annually.
- It’s estimated that social enterprise activity constitutes 2-3% of GDP.
Australia has an amazing social enterprise called the Thankyou Group. They provide a range of high quality products that contribute to providing either water, food or health and hygiene training to someone in need. Check them out at http://thankyou.co/
ETC BusinessLeaders’ presents Daniel Flynn – 26 May
Proudly presented by DFA Financial Planners don’t miss a lunch presentation by Managing Director and Co-Founder of Thankyou Group Daniel Flynn. This event is on 26 May at Novotel Pacific Bay Resort from 12pm–2pm. Costs $49 and includes lunch. Register now.