Social Enterprise in Australia: The Need for a Social Innovation Ecosystem

For example, reductions in government funding for essential services, many of which deal directly with social and economic inequalities, often require organisations to do more with less. Certainly, not too long ago, the Australian federal government used (and quickly dropped) innovation to frame how the country’s ‘ideas boom’ would help guide all Australians to a more prosperous economic future. The importance of innovation to help tackle long-term social inequalities was less clear.

Indeed, any innovation ecosystem that lacks proper, coordinated investment makes the task of delivering long-term equality even harder. For organisations on the front-line of service delivery – those working with individuals and communities affected by complex challenges – reductions in funding and marketisation of their services, apply severe pressure on their ability to serve communities.

Understandably, given these constraints, some existing providers and community members have sought alternative ways to address inequality. One such approach is social enterprise.

In Australia, the social enterprise sector comprises approximately 20,000 diverse organisations.

These organisations are businesses that trade products and services to produce surplus, which is reinvested towards a social and/or environmental mission. Social enterprise can take many forms: from cooperatives and