Melbourne Chamber member Social Traders, Australia’s leading social enterprise procurement intermediary and the only social enterprise certifier in the country, has released its annual impact report, showcasing world-leading social procurement growth and the increasing impact of social enterprises across the Australian economy.

The Impact Report FY23 revealed Social Traders’ 160 business and government members have spent $843 million with certified social enterprises over the last six years. Social enterprise spend is growing by 36 per cent every year, and FY23 was the biggest year yet with $237 million spent.

Social Traders CEO Tara Anderson said: “Social enterprise procurement is catching on. Some of Australia’s largest businesses and three state governments are accessing Social Traders support to buy from certified social enterprises.

“There’s a real shift in momentum and we’re calling on government and philanthropy to continue to endorse and invest in the social enterprise sector to build its capacity, including certification, data and social procurement policy.”

Data also revealed that, in FY23:

• 58 per cent of business and government members increased their social procurement spend
• 69 per cent of business and government members increased the number of certified social enterprises in their supply chain
• 72 per cent of business and government members increased the number of categories of social procurement spend.

“Social enterprise procurement is one of the best levers for organisations to deliver social impact – the “S” in ESG – simply by doing what they do every day, purchasing goods and services,” Ms Anderson said. “There’s a growing trend towards social enterprise procurement and those that don’t catch on now will get left behind.”

The rise of social enterprise

In FY23, certified social enterprises are for the first time present in every Australian state and territory with a record 509 in total, growing nationally at an average of 16 per cent every year.

Certified social enterprises are also becoming more sustainable and increasing their impact: 86 per cent increased or maintained their trading revenue; 77 per cent increased their spend on delivering impact, and 67 per cent increased the number of people they support.

Social Traders focuses on connecting certified social enterprise suppliers with business and government buyers. Its world-leading certification framework is designed to clearly define and elevate the social enterprise sector. In FY23, it was able to support certified social enterprise members to deliver substantial impact:

• 1,326 jobs supported for the most marginalised individuals
• 1,211 pathway outcomes into employment or further study
• Over 123,000 employment training hours delivered
• $24.6 million in goods and services delivered to disadvantaged communities
• 7,704 tonnes of waste diverted from landfill
• $1.9 million in charitable funds donated.

“We’re creating real impact including creation of jobs for the most marginalised individuals, training to support pathways to employment, and providing services and funds for the most disadvantaged communities,” Ms Anderson said.

“By 2030, we envisage 460 business and government members spending $5.5 billion with 2,000 certified social enterprises nationally. This could support 44,000 jobs and 6 million training hours for marginalised job seekers as well as $128 million invested into community services and the charity sector. There’s more to do. Together, we can create a more equitable, inclusive, and sustainable economy for Australia. The time is now.”

Get a copy of the report