A world where economies are measured by the extent to which they generate positive social and environmental outcomes is the new reality being shaped around the globe by the social economy. The social economy has a significant economic contribution globally, representing an estimated 7% to 10% of global gross domestic product. 

In Australia, a lack of research means there is limited understanding of the full potential of the social economy as a conceptual framework. This first comprehensive research into Australia’s social economy seeks to change that. The research explores key areas including funding, partnerships, impact measurement, legal and policy frameworks, and digital technologies. A survey of 140 Social Economy Organisations (SEOs) uncovered a diverse ecosystem addressing critical societal needs while operating predominantly as small organisations with democratic governance structures.

Globally, international organisations have developed specific frameworks and recommendations to support the social economy sector’s growth as a model for sustainable development. In contrast, due to Australia lacking a cohesive policy approach, there are currently significant gaps in both understanding and implementing measures that can strengthen and drive impact from the Australian social economy. 

Key findings

• Access to funding and funding diversification was consistently listed as the top priority and risk for SEOs, with organisations identifying the need to explore and build capability in accessing and managing innovative financing models.
• SEOs recognised the benefits of collaboration but were under resourced to effectively do so with their counterparts.
• Australia’s mutuals and co-operatives, though often less visible, provide substantial contributions to the social economy and the sector holds considerable growth potential.
• SEOs consistently reflected on the need for resources, both financial and in terms of frameworks, to support social impact assessment.
• The lack of consistent regulatory and policy support from government presents barriers to growth and security for many SEOs in Australia.