Social Enterprise in Australia 2025: Profit with Purpose

Social enterprise has moved from the fringes to the forefront of Australia’s business landscape. In 2025, these ventures aren’t just about doing good—they’re redefining what it means to succeed, blending financial sustainability with measurable social impact. Whether it’s tackling youth unemployment, championing sustainability, or bridging the urban-rural divide, social enterprises are rewriting the Australian business playbook.

What is a Social Enterprise—and Why Is It Booming?

A social enterprise is a business that trades to intentionally tackle social problems, improve communities, provide people access to employment and training, or help the environment. Unlike charities, social enterprises generate most of their income through trade—not donations. In 2025, Australia boasts over 20,000 social enterprises, spanning industries from food and beverage to tech, healthcare, and retail.

• Profit with Purpose: Social enterprises reinvest the majority of profits into their mission.

• Workforce Inclusion: Many employ people who face barriers to work, such as those with disabilities, refugees, or long-term unemployed.

• Environmental Impact: Sustainability is often built into their DNA, from ethical sourcing to zero-waste models.

The post-pandemic years saw a surge in consumer and investor demand for businesses that deliver both financial returns and positive impact. According to the 2025 Social Traders Index, 78% of Australians say they’re more likely to support a company with a clear social mission.

Policy Updates and Support for Social Enterprise in 2025

Government and private sector support have accelerated the growth of social enterprises. In July 2025, the Australian Government rolled out the Social Enterprise Growth Fund, a $120 million initiative offering low-interest loans and grants to ventures tackling local disadvantage and climate resilience. Key 2025 policy developments include:

• Social Procurement: All federal contracts over $500,000 now require bidders to outline their social value commitments, opening new doors for social enterprises.

• Tax Concessions: The ATO introduced tax incentives for certified social enterprises, reducing their corporate tax rate by up to 5% if they can demonstrate measurable community impact.

• Certification Expansion: Social Traders and B Corporation certification numbers are at an all-time high, with streamlined processes to help smaller ventures join the movement.

These policies are designed to create a level playing field, making it easier for social enterprises to compete for contracts and attract investment.

Real-World Examples: Social Enterprise in Action

Australian social enterprises are as diverse as the communities they serve. Here are a few standouts in 2025:

• Good Cycles (Melbourne): Originally a bike shop, Good Cycles now employs over 200 young people experiencing disadvantage, offering training in logistics, maintenance, and digital skills. Their city logistics arm has become a vital part of Melbourne’s push for green urban delivery.

• IndigiGrow (Sydney): This First Nations-led nursery cultivates native bushfoods and plants, providing jobs for Indigenous Australians and helping restore biodiversity in urban areas. IndigiGrow’s 2025 expansion includes a partnership with major supermarket chains to bring native foods to more Australians.

• FIVE Bridges (Queensland): Focused on empowering Indigenous communities, FIVE Bridges delivers training, employment, and cultural programs, supported by a portfolio of social enterprises in hospitality and events.

These organisations prove that with the right support, social enterprise can deliver scalable, sustainable impact.

How to Get Involved or Start Your Own Social Enterprise

Whether you’re an aspiring founder, investor, or a conscious consumer, there are plenty of ways to join the social enterprise movement in 2025:

• Buy Social: Look for the Social Traders or B Corporation certification when you shop or contract services.

• Invest with Impact: Impact investing funds and crowdfunding platforms like StartSomeGood have made it easier to back social ventures.

• Access Resources: State governments, Social Enterprise Australia, and local innovation hubs offer grants, co-working spaces, and mentoring for new founders.

• Collaborate: Many traditional businesses are partnering with social enterprises for supply chain and CSR initiatives, driving broader system change.

The social enterprise sector isn’t just a niche—it’s a dynamic, rapidly growing part of the Australian economy, offering a blueprint for business that benefits everyone.