Melbourne based not-for-profit Social Traders has announced it will embark on a new strategic direction, focused on job creation through social enterprise procurement.
The aim of the new strategy is to create more than 1500 jobs for disadvantaged Australians over the next four years.
For almost a decade, Social Traders has advocated for social procurement as part of a broader range of support for the social enterprise sector. Now the organisation will exclusively focus on procurement, given its potential to create major social change.
Chief Executive David Brookes said Social Traders is looking forward to taking on the challenge of unlocking the massive potential of social enterprise procurement and encouraging the corporate and government sectors to “buy social impact”.
“What is clear, is that social procurement through social enterprise is just beginning, with potential to become the greatest untapped tool for positive social impact in Australia. Our goal is to deliver that message to corporate Australia and help them understand that by making just a small change they can have a massive impact.” said Brookes.
“The opportunity is significant and simple enough – we estimate the procurement spend in Australia to be approximately $600 billion and that for every $100,000 spent on social procurement 1.5 jobs are created for disadvantaged Australians.”
Describing social enterprise procurement as the “missing link”, Brookes said that Social Traders aims to create a community of 95 buyers and 600 certified social enterprise suppliers over the next four years, and facilitate $105 million in procurement spend – and in turn create 1500 jobs.
Under the new model, Social Traders will identify social enterprise supply chain opportunities, match social enterprises to buyers, support buyers to implement and social enterprises to deliver on the contracts, and help them report on the impact of social procurement.
“We encourage Australian businesses to get on board and join the social procurement revolution,” said Brookes.
There are approximately 20,000 social enterprises operating in the Australian marketplace, with over 30% having commenced trading in the past five years. Visit www.socialtraders.com.au for more information.