5 key benefits of Social Enterprises
By John Bateup, CEO WISE Employment
Dean had worked hard to get where he was today, but he was still nervous about accepting his certificate in front of the 60 people gathered before him. The Honourable Bill Shorten MP was guest speaker at the event which marked Clean Force’s $1 million turnover. From its beginnings in 2001, Clean Force has grown from its Northcote base to service over 30 customers in the commercial, government and not-for-profit sectors and employing and training over 100 workers. Dean was one of several members of his team at Clean Force Property Services that would receive their Certificate III in Asset Maintenance (Cleaning Operations). Quite an achievement – not least of which because Clean Force is an Australian Disability Enterprise with workers who may experience a learning difficulty, intellectual disabilityor a mental illness – the term often used is ‘social enterprise’.
As CEO of not-for-profit organisation, WISE Employment, I have been involved in the disability sector since 1989, founding WISE as a disability employment services in Melbourne, Australia, in 1992. As an organisation we have engaged different strategies and programs to assist job seekers with a disability and other disadvantaged communities growing to over 600 staff in 30 offices across Australia. An important part of our growth has included the development of WISE Social Enterprises – Clean Force Property Services, Incito Maintenance, GBE Electrical and Equity Labour Services (ELS).
What is a social enterprise? The definition of a ‘social enterprise’ can be difficult to capture and can vary widely from country to country and even within Australia. The UK-based Social Enterprise Coalition defines a social enterprise as a business trading for a social purpose. Most social enterprises are directly involved in producing goods or services to a particular market with the explicit social and/or environmental aims, and their profits will be principally reinvested to achieve their social objectives. And while the social enterprise is a business venture that was created for a social purpose, it must still operate with financial discipline, innovation and the determination of a private sector business.
So what are the key benefits?
- Social enterprises can be an avenue for income and business generation that complements our mission activities. WISE Employment provides specialist employment services under the Australian Government’s Job Services Australia and Disability Employment Services. Our mission is to assist job seekers fulfill their vocational goals through ‘Empowerment through Employment’. Social enterprises were therefore a natural fit for our business.
- They can be an opportunity to compete within the market against all competitors including the commercial sector. The success of these enterprises is reliant on a number of factors, not least of which is the support of corporate Australia in the employment of these social enterprises. No matter what industry – cleaning, hospitality or garden maintenance – the social enterprise needs to be competitive.
- Developing new relationships with prospective customers. The challenge lies in how to pitch the business to prospective customers – do you focus on the commercial benefits or do you emphasise the potential social outcomes? For each of our social enterprises, we have found that is a constant challenge but one that can come with great rewards. While Clean Force had serviced many customers, when they secured the cleaning contract at the Richmond Football Club in 2007 it certainly reinforced the quality of service they were providing the market. For both Clean Force and the RFC, it has been a great partnership with mutual benefits.
- Diversification of revenue. For not-for-profit organisations, social enterprises can provide diversification of revenue and new methods to achieve their social aims. There are many opportunities for social enterprise in the future.
- Opportunity for organisational growth and development. We are still learning about ‘best practice’ and this is best done in an environment of collaboration and support. WISE Employment has collaborated with Housing Choices Australia and Social Firms Australia to launch a new social enterprise – Incito Maintenance. Incito will perform a dual function of delivering high quality commercial property maintenance services whilst creating paid employment and skills development opportunities for its employees. 50% of Incito’s employees are people with mental illness, disability and or disadvantage and 50% from the broader workforce. Incito will actively employ tenants of subsidised housing.
These workers will no doubt take pride in the uniform they wear and the work they do. Our goal is that they too will one day be standing at an event, like Clean Force’s employees, celebrating their $1 million turnover. And while the financial aspirations are important and certainly achievable, who knows how many people will find a job and change their life along the way. And there lies the intrinsic benefit of social enterprises – as a not-for-profit organisation, we can achieve ongoing sustainable impact, the customer gets a job done that they needed to be done, someone gets a job and as a community we may achieve a more inclusive society.
With so many potential benefits, I would encourage you all to consider supporting a social enterprise today.
