Social Enterprises

The text books call a Social Enterprise “a profit-making venture set-up to tackle a social need”. Many commercial businesses might consider themselves to have a social objective, but a Social Enterprise is unique because their social purpose is central to what they are. Rather than maximising shareholder value, their aim is to generate profit to further their social purpose.

Some commentators describe this as “not-for-profit” as their profits are not distributed to financial investors, this is a little misleading as it implies they are unbusiness-like. It is better said that profits of the business is used to support its social aim or that the business itself accomplishes the social aim through its operation.

However, there are some misleading interpretations of the term "Social Enterprise" particularly in the business community who try to ride a wave of popular support for Social Enterprises in the community. However, despite the owners best motives and goals to establish a business based on meeting social outcome they can't truly be called a Social Enterprises as there is no binding or legal structures to ensure their profits continue to support that social purpose long-term and so it is best to discriminate between what is a "socially responsible business" and a Social Enterprise.

Consequently, for a Social Enterprises to truly meet this definition it must have a legal structure that ensures the long-term support of its social purpose. For example an Incorporated Association where the social purpose has been enshrined in the constitution.

SA Group Enterprises generates the major proportion of it's operating revenues from commercial activities. The balance is the form of a grants from Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA) for providing support and training for people with a disability to work within our businesses which are called Australian Disability Enterprises (ADE).

We also receive grants from Department of Education, Employment and Workplace Relations (DEEWR) to support people who are Deaf or hearing impaired to prepare, find and maintain employment in the community.

Although SA Group Enterprises receives some grants, contrary to common belief government grants are not subsidies. The fact is they are a fee-for-service, open to any organisation, regardless whether they are commercial, non-profit or charity based, provided they successfully tender and meet the requirements of that grant.