Communities in need of a helping hand will be getting more as the Albanese Labor Government provides funding to grow social enterprises.
Whether it’s a business such as a laundry, a bicycle repair shop, a café giving training to disadvantaged youth or a property or gardening maintenance business, social enterprises provide value support to communities in tackling long term disadvantage.
To strengthen the social enterprise sector in tackling entrenched disadvantage, the Labor Government is investing $11.6 million through the Social Enterprise Development Initiative (SEDI): This funding provides:
- $6 million in grant funding through to 2025-26 for Social Enterprises to allow up to $120,000 in support to strengthen capability in the key areas of business planning, financial management, contract negotiation as well as access further finance such as investment loans and capital.
- $3 million for a one stop hub of educational materials and tools for the sector to guide best practice and support the broader including other partners and investors.
- Additional funding to evaluate and administer the two programs.
There are around 12,000 social enterprises operating in Australia, employing 206,000 people with an estimated value to the economy of $21.3 billion annually.
Social Enterprise Australia (SEA) has been appointed as the SEDI Education and Mentoring Coordinator and will be responsible for the coordination and management of the online industry hub.
Impact Investing Australia (IIA) has been appointed as the SEDI Grants Administrator and will be responsible for administering the available grants.
Minister for Social Services Amanda Rishworth said the investments would help social enterprises better work with vulnerable individuals and communities across the country.
“We want all Australians and communities – no matter the postcode – to have the best opportunity to thrive, and social enterprises offer innovative and tailored solutions to help tackle entrenched and intergenerational disadvantage,” Minister Rishworth said.
“This funding will help social enterprises to grow and attract more capital and enables more of these innovative businesses to prosper.
“By investing in these organisations to build on their capability, we can ensure that more Australians in need can access support to build better lives for themselves, and their communities.”
Social Enterprise Australia CEO Jess Moore said the funding would help build opportunities across the whole sector.
"We're thrilled about this launch. A big hats off to the Commonwealth Government for engaging the sector so well to inform the design of SEDI,” Ms Moore said.
“We're excited to be a delivery partner on what comes next; to connect social enterprises, capability-builders, social impact investors, and others, and to provide pathways to capability-building opportunities."
Impact Investing Australia CEO David Hetherington noted the organisation’s delight to partnering with the Government again.
“SEDI is an excellent new initiative building on the Commonwealth’s social impact investing trials that will allow social enterprises to further scale their efforts to support Australians facing disadvantage,” Mr Hetherington said.
“Social enterprises play a critical role in the broader impact investing market and we’re so excited about this opportunity to help them grow.”
The $11.6 million investment into SEDI will be delivered as part of the Targeted Entrenched Disadvantage Package. Social enterprises will be able to apply for capability building grants through IIA’s website from June 2024.
More information about the SEDI is available on the Department of Social Services website.