Business Sydney has urged New South Wales’s business community to purchase from social enterprises, coinciding with the release of a new in-depth paper launched in partnership with the New South Wales Government.
Social Enterprises – Unlocking Life-Changing Economic Power includes a five-step action plan to build the social enterprise sector, highlighting the growing economic and social contribution of social enterprises and how government and business procurement can help unlock their full potential.
The report reveals that social enterprises reinvest an average of 27 percent of their revenue into social and environmental impact, with 43 percent of jobs going to people facing the greatest barriers to employment.
That equates to around $5.7 billion spent on impact each year and 89,000 jobs created for people who need them most.
Around one-third of Australia’s social enterprises are based in NSW and contributed almost $9 billion to the state economy in the year to June 2025.
Business Sydney Executive Director Paul Nicolaou said the government and the business community could join forces to ensure social enterprises are seen as a valued part of the state’s economic life in creating jobs and opportunities.
“With 4,000 social enterprises in NSW contributing $9 billion to the state economy in the year to June 2025, our state is the leader in this growing sector,” Nicolaou said.
“Social enterprises help vulnerable groups in the community to find work and career opportunities that might not otherwise exist, and we must do everything possible to help them prosper.
“It is imperative that businesses give due consideration to engaging with social enterprises by making them part of their supply chain procurement policies.
“We would like to see businesses follow the government’s lead in recognising social enterprises as one of the most innovative and inspiring sectors of the business community.”
Featured within the report are nine notable social enterprise case studies, including The Bread & Butter Project, Plate it Forward, Hotel Etico, The Freedom Hub, Jigsaw Australia, The Reconnect Project, Community Construction, Revolve ReCycling and The Social Outfit.
According to the paper, each year social enterprises deliver almost 16 million hours of paid employment for beneficiary employees, 13,000 employment pathway outcomes and 906,000 hours of employability training.
They also divert 1.2 million tonnes of waste from landfill and are responsible for $33.7 million in charitable donations.
NSW Minister for Domestic Manufacturing and Government Procurement Courtney Houssos said social enterprises deliver genuine economic and social benefits for communities across the state.
“By joining with Business Sydney to launch this report, we are highlighting the important role social enterprises play in creating jobs, strengthening communities and driving inclusive economic growth,” she said.
“Many of these organisations are deeply connected to their local communities, reinvesting profits back into services, training and employment opportunities for people who need them most.
“The Minns Labor Government is using the weight of government procurement to drive better outcomes for NSW, which means more local jobs, stronger supply chains and more inclusive growth.”
The NSW Government has recently implemented a series of procurement reforms designed to drive local economic development and create more jobs for NSW workers and businesses, thereby creating new opportunities for social enterprises.
These reforms include establishing a Local Jobs First Commission to support local industries, and introducing an ‘If not, why not’ mandate requiring NSW Government agencies to engage with local NSW suppliers before going to tender for projects worth more than $7.5 million.
“Social enterprises build our society in such a positive way, whether it is opening job opportunities for the disabled or offering a way forward for people who have come to our country seeking refuge and a new life,” added Nicolaou.
“They are making a strong and measurable contribution to the NSW economy but, with tangible encouragement, they could do so much more.
“The paper includes recommendations that can drive the sector further, including the government and the private sector setting procurement targets.”
