The Contribution and Potential of Work-focussed Social Enterprises in Australia

1. The Contribution and Potential of Work-focussed Social Enterprises in Australia Mark Daniels – Social Traders Lisa Fowkes – Consultant www.socialtraders.com.au

2. Why the research? Social enterprise advocates and governments alike believe that there is a role for SE in creating jobs for those disadvantaged in the labor force but there is not a corresponding policy mechanism to support this.

3. Work focussed social enterprise – working definition Organisations that provide temporary or ongoing paid employment to people who face disadvantages in the labour market and that secure significant funding through trading

4. General characteristics • FASES – 21% have employment as a ‘main purpose’ • Enterprises tend to be small (62% employed fewer than 20 people over the last year) • Many organisations have more than one enterprise • Most have more than 50% trading revenue, around 30% are self sufficient • Relatively few ‘pure’ ILMs (23%)

5. Reasons for establishing • This form of assistance works best for some people • Desire to generate income and develop initiatives independent of Government • Desire to create job opportunities not otherwise available in the labour market

6. Views from the SE Tailored assistance “The first month they’ve got to learn a work muscle; they haven’t actually worked in a physical environment, a lot of these participants, for an eight hour shift for up to sort of 20 years in some cases so we’re wearing them out physically… it’s a change of culture for these guys .. if they come in under the influence of alcohol and we can smell that we’re going to say “Look, sorry you’re not safe for this place, you’re going home and we’ll dock that as a sick day for you”. Market facing “..they are doing real work..they know that we can only have three complaints against us…they are mingling with all the other contractors” Real Work “You’re being paid, and you can never under-estimate the value of a pay packet to someone’s dignity and esteem…. Work for the Dole is a program. The Enterprises that we run, they’re real jobs.”

7. Challenges to the value of work focused social enterprise • That they are not ‘real’ jobs • That they are expensive compared with other programs • That they have high deadweight costs • That they encourage dependence • That in some cases, they are exploitative

8. Implications of the Research • We have been holding consultations with employment-focused SEs based on the research in response to straw-person proposals. • How can we grow the impact of work focused SEs? • Can you create an environment that supports WFSE but enables the flexibility that is a hallmark of their success? • Should SE’s be treated as a special class in the employment system or should they be treated the same as any employer? • Can the frameworks developed in the paper become useful tools in the management and measurement of these organisations. Could this be the basis for accreditation?

9. Questions? Where can I get the research findings www.socialtraders.com.au Mark.daniels@socialtraders.com.au lisalawsonfowkes@gmail.com