What is a social enterprise?

A social enterprise is a business that puts people and planet first. They trade like any other business but exist specifically to make the world a better place.

They primarily trade and they exist for a public or community purpose.

Social Enterprise Australia and all state and territory peak bodies in Australia endorse the global standards to define social enterprise. Social Enterprise Australia endorses them because they are collectively owned, clear, and align Australia with the global sector.

They outline that social enterprises do five things:

  • Purpose: Exist to solve a social or environmental problem

  • Operations: Prioritise people, planet and their purpose over profit in operational decisions 

  • Revenue: Have a self-sustaining revenue model

  • Use of surplus: Reinvest most of any surplus in their purpose

  • Structure: Choose legal structures and financing that protect and lock-in purpose long term.

Types of social enterprise

Meeting unmet consumer needs: Providing essential or culturally specific goods/services where government or market providers do not. 

First Nations-led for First Nations justice: A First Nations-controlled social enterprise working to create economic, social, or cultural outcomes that advance First Nations justice, self-determination, and community-led solutions. 

Advancing charitable or community purpose: Generating revenue to fund charitable activities or community development. 

Creating opportunities for community participation: Enabling social connection, inclusion, and local engagement. 

Work integration social enterprise (WISE): Providing employment or training pathways for people facing barriers to work. 

Promoting ethical consumption and sustainable supply chains: Using ethical sourcing, fair trade, or sustainable production to address social or environmental injustices. 

Social and environmental innovation: Pioneering new business models, technologies, or services that address emerging social and environmental challenges. 

Strengthening the social economy: Providing services that support social enterprises and other impact-driven organisations.