Wednesday, 29 May 2024
    Social enterprise on the rise: Philanthropy fuels growth in Australia's procurement sector
    Not For Profit

    Social enterprise on the rise: Philanthropy fuels growth in Australia's procurement sector

    Social enterprise, combining mission and money, is the future of business, believes Social Traders CEO Tara Anderson. Social Traders connects social enterprises with businesses and government to foster the growth of the social procurement sector in Australia.  

    Anderson highlights that Australia is witnessing the fastest and largest social enterprise procurement growth globally, with philanthropy playing a pivotal role in driving this momentum.  

    With approximately 12,000 social enterprises in Australia, the sector’s influence is rapidly expanding. Social enterprises operate like any other business but prioritise creating social or environmental impact.  

    Anderson emphasises, “Philanthropy is fueling social enterprise procurement growth.” Since 2020, philanthropic powerhouses such as The Ian Potter Foundation, Gandel Foundation, and Helen Macpherson Smith Trust have supported Social Traders in integrating certified social enterprises into mainstream business.  

    Social Trader’s Vision 2030 strategy is to catalyse $5.5 billion in business and government spending with certified social enterprises nationwide, resulting in 44,000 jobs for marginalised individuals, 6 million training hours to support employment pathways and $128 million in services/funds for disadvantaged people.   

    In the last five years, Social Traders' businesses and government members have spent $607 million with certified social enterprises. The recent inclusion of the sector in the 2023 Federal budget and endorsements in the Working Future White Paper and the Local Jobs Program further boost confidence in achieving Vision 2030. 

    That's good news not only for social enterprises but for everyone. With more cash in their pockets, not-for-profits can continue their work on worthy causes. Meanwhile, Procurement Australia's not-for-profit members can also contribute to growing the economy through their spending and delivering their services. If you are not already a Procurement Australia member, why not learn more about the benefits of a membership? Member benefits are listed on the Members page of our website.