The Australian Centre for Philanthropy and Nonprofit Studies, qut
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- Seed funding organisations
- Crowdfunding
- Social enterprise and university collaboration
- Key issues and emerging trends
- References
Australian contextThe first nationwide study into social enterprise in Australia found that the Australian social enterprise sector is diverse, mature and sustainable, with an estimated 20,000 Australian social enterprises in operation (Barraket et al. 2010). Earned income was found to be the dominant source of income; however, consistent with the experience of other social enterprises around the world Australian social enterprises are also multiresourced businesses. They typically rely on a mixture of paid and unpaid workers, earned income and other income (such as grants and donations) in order to fulfil their mission. Responding social enterprises estimated that they had received between zero and 25,000 hours of in-kind contributions such as legal support and volunteer time through corporate volunteering during the 2007–08 financial year. In contrast to the UK, there is a lack of coordinated policy for social enterprises within Australia. The preliminary findings from a series of 13 workshops with 75 participants found that there is a need for advocacy to both governments and the public of the benefits and needs of social enterprise in Australia (Barraket 2015). Despite limited public policy and regulation around social enterprise development there are a range of philanthropic activities that seek to support Australian social enterprises. Seed funding organisationsSeed capital for start-up social enterprises is often challenging and this particular form of capital is underdeveloped in Australia. Potential sources of seed capital include: Westpac Foundation Social Traders Social Ventures Australia, and Parramatta City Council Seed Funding. CrowdfundingLaunched in 2013, Dreamstarter is an online platform designed to provide seed funding for social enterprise. A collaboration between ING Direct, StartSomeGood and the School for Social Entrepreneurs Australia, the initiative has raised almost half a million dollars for 38 projects, ranging from health, education, social welfare and the environment (Caneva 2015). ING Direct pledges up to 50% of a project’s ‘tipping point’ with the rest of the funds generated by the community. Social enterprise and university collaborationThere is limited policy support for social enterprise and university collaborations in Australia compared to in the UK. However, there are examples of collaborative arrangements, such as The Big Idea, which seek to find new social enterprise ideas by inviting students to develop a concept and business plan for a social enterprise. Through the program students have access to social enterprise experts and guest speakers and it is an example of collaborative arrangements between academic institutions and social enterprise. The University of Technology Sydney (UTS) ShopFront also provides a pro bono service that connects community-based organisations, including social enterprise, with the skills of students and academics within UTS. Key issues and emerging trendsThe pursuit of both social and financial goals distinguishes social enterprises from traditional NPOs. This has important implications for understanding the role of charitable donations and volunteering in the context of these third sector organisations. The literature to date has focused on understanding social enterprises as hybrid organisations and the way in which different income sources (charitable donations/income/grants) can affect social enterprise legitimacy. Social enterprises attached to a nonprofit may experience difficulty with donors’ negative perceptions of commercial activity. It is not clear if this is also an issue for social enterprises with different founding origins. How social enterprise origin influences philanthropic activity and how this may change over time warrants greater attention. The imperative to demonstrate financial viability in order to attract commercial finance is also an issue for social enterprises reliant on grant-based funding and donations. Understanding how social enterprises seek to grow and scale while balancing the expectations of different stakeholders is also limited. The legal forms of social enterprises are also gaining greater attention in some countries, as they represent emergent attempts to legitimise social enterprise activity. However, it is not yet clear whether certain legal forms are able to attract new investment into the social enterprise sector (Nicholls 2010). Furthermore, particular legal forms can constrain the ability for social enterprises to attract philanthropic donations and therefore greater research is needed into whether specific legal structures are suited for particular social enterprise missions and stage of development. The institutional environment plays an important role in how social enterprises are able to access resources. It also explains how Australian patterns of giving and volunteering differ from other countries. For example, it is evident that advocacy and policy support for social enterprises in the UK is more developed than in Australia. Collaborations between social enterprises and universities to encourage in-kind support and volunteering are more prevalent and institutionalised in the UK. This is owing to significant investment and policy initiatives to encourage this form of engagement. ReferencesBarraket, Jo. 2015. Finding Australia's Social Enterprise Sector 2015 Interim Report, Working Paper 2015.1: Centre for Social Impact, Swinburne University of Technology. Barraket, Jo, Nick Collyer, Matt O'Connor and Heather Anderson. 2010. Finding Australia's Social Enterprise Sector: Final Report Vol. June, 2010: The Australian Centre for Philanthropy and Nonprofit Studies, Queensland University of Technology. Barth, Sharine, Jo Barraket, Belinda Luke and Juliana McLaughlin. 2015. "Acquaintance or partner? Social economy organizations, institutional logics and regional development in Australia." Entrepreneurship & Regional Development 3 (4): 219-254. Battilana, Julie and Matthew Lee. 2014 "Advancing Research on Hybrid Organizing - Insights from the Study of Social Enterprises." The Academy of Management Annals 8 (1): 397-441. Burkett, Ingrid 2010. Financing Social Enterprise. Brisbane Foresters Community Finance. Caneva, Lina. 2015. "Crowdfunding for social impact projects." ProBono. http://probonoaustralia.com.au/news/2015/07/crowdfunding-for-social-impact-projects/. Chikoto, Grace L. and Michael Halicki. 2013. "Contextual Factors and Negotiating Spaces: Exploring the Emergence of Nonprofit and Hybrid Voluntary Organizations." Nonprofit Management and Leadership 23 (3): 347-365. doi: 10.1002/nml.21065. Clarkin, John E.. 2014. "Crowdfunding, Foundations, and Impact Investors as Sources of Financial Capital for Social Entrepreneurs " In Theory and Empirical Research in Social Entrepreneurship edited by P Phan, J Kickul and S Bacq. Cheltenham: Edward Elgar Publishing Dart, Raymond 2004. "The Legitimacy of Social Enterprise " Nonprofit Management and Leadership 14 (4): 411-424 Department for Business Innovation & Skills. 2013. Office of the Regulator of Community Interest Companies: Leaflets Frequently Asked Questions BIS/13/786 vols. Cardiff Crown Copyright 2013 Doherty, Bob, George Foster, Chris Mason, John Meehan, Karon Meehan, Neil Rotheroe and Maureen Royce. 2009. "Managing People in a Social Enterprise Environment " In Management for Social Enterprise edited by Bob Doherty. London: SAGE Publications Ltd. Doherty, Bob, Helen Haugh and Fergus Lyon. 2014. "Social Enterprises as Hybrid Organizations: A Review and Research Agenda." International Journal of Management Reviews 16 (4): 417-436. Esposito, Robert T.. 2015. "Charitable Solicitation Acts: Maslow's Hammer for Regulating Social Enterprise " Journal of Law and Business 11 (3): 463-502. Hall, Kelly, Pete Alcock and Ross Millar. 2012. "Start Up and Sustainability: Marketisation and the Social Enterprise Investment Fund in England " Journal of Social Policy 41 (04): 733-749. Herman, Robert D. and Denise Rendina. 2001. "Donor Reactions to Commercial Activities of Nonprofit Organizations: An American Case Study." Voluntas 12 (2): 157-169. Jager, Urs P. and Andreas Schroer. 2014. "Integrated Organizational Identity: A Definition of Hybrid Organizations and a Research Agenda " Voluntas 21 (5): 1281-1306 Lehner, Othmar 2013. "Crowdfunding Social Ventures: A Model and Research Agenda " Venture Capital 15 (4): 289-311. Lehner, Othmar and Alex Nicolls. 2014. "Social finance and crowdfunding for social enterprises: a public-private case study providing legitimacy and leverage." Venture Capital: An International Journal of Entrepreneurial Finance 16 (3): 271-286. Luke, Belinda, Jo Barraket and Robyn Eversole. 2013. "Measurement as Legitimacy Versus Legitimacy as of Measures Performance Evaluation of Social Enterprises " Qualitative Research in Accounting & Management 10 (3/4): 234-258. Lumpkin, G.T., Todd W. Moss, David M. Gras, Shoko Kato and Alejandro S. Amezcua. 2013. "Entrepreneurial processes in social contexts: how are they different, if at all?." Small Business Economics 40: 761-783. Maddrell, Avril M. C.. 2000. "'You just can't get the staff these days': The challenges and opportunities of working with volunteers in a charity shop - an Oxford case study " International Journal of Nonprofit and Voluntary Sector Marketing 5 (2): 125-139. Mannetti, Giacomo. 2014. "The Role of Blended Value Accounting in the Evaluation of Socio-Economic Impact of Social Enterprises." Voluntas 25 (2): 443-464. Mason, Chris. 2012. "Isomorphism, Social Benefit and the Pressure to Maximise Social Benefit " Journal of Social Entrepreneurship 3 (1): 74-95. McKay, Stephen, Domenico Moro, Simon Teasdale and David Clifford. 2015. "The Marketisation of Charities in England and Wales " Voluntas 26 (1): 336-354. Nicholls, Alex. 2009. "We do good things, don't we?: 'Blended value accounting; in social entrepreneurship." Accounting, Organizations and Society 34 (6-7): 755-769. Nicholls, Alex. 2010. "Institutionalizing social entrepreneurship in regulatory space: Reporting and disclosure by community interest companies." Accounting, Organizations and Society 35 (4): 394-415 O'Halloran, Kerry. 2012. The Profits of Charity: International Perspectives on the Law Governing the Involvement of Charities in Commerce New York Oxford University Press Pache, Anne-Claire and Filipe Santos. 2013. "Inside the hybrid organization: selective coupling as a response to competing institutional logic " Academy of Managment Journal 56 (4): 972-1001. Parsons, Elizabeth 2004. "Charity Shop Managers in the UK: Becoming More Professional?." Journal of Retailing and Consumer Services 11 (5): 259-268. Ridley-Duff, Rory and Michael Bull. 2011. Understanding Social Enterprise Theory and Practice. London: SAGE. Royce, Maureen. 2007. "Using human resource management tools to support social enterprise: emerging themes from the sector " Social Enterprise Journal 3 (1 ): 10-19. Seyfang, Gill and Adrian Smith. 2007. "Grassroots Innovations for Sustainable Development: Towards a New Research and Policy Agenda " Environmental Politics 16 (4): 584-603. Simmons, Richard and Johnston Birchall. 2008. "The role of co-operatives in poverty reduction: Network perspectives." Journal of Socio-Economics 37 (6): 2131-2140. Smith, Brett R, Maria L Cronley and Terri F Barr. 2012. "Funding implications of social enterprise: The role of mission consistency, entrepreneurial competence, and attitude toward social enterprise on donor behavior." Journal of Public Policy & Marketing 31 (1): 142-157. doi: 10.1509/jppm.11.033. Social Enterprise UK. 2013. State of Social Enterprise Survey 2013. London: Social Enterprise UK. Spear, Roger, Chris Cornforth and Mike Aiken. 2009. "The Governance Challenges of Social Enterprises: Evidence From A UK Empirical Study " Annals of Public and Cooperative Economics 80 (2): 247-273. Sunley, Peter and Steven Pinch. 2012. "Financing Social Enterprise: Social Bricolage or Evoluntionary Entrepreneurialism " Social Enterprise Journal 8 (2): 108-122. Thompson, Piers and Robert Williams. 2014. "Taking Your Eyes Off the Objective: The Relationship Between Income Sources and Satisfaction with Achieving Objectives in the UK Third Sector." Voluntas 25 (1 ): 109-137. Universities UK. 2012. Universities enabling social enterprise: Delivering benefits to all. London: Universities UK. http://www.universitiesuk.ac.uk/policy-and-analysis/reports/Documents/2012/universities-enabling-social-enterprise-delivering-benefits-for-all.pdf. Young, Dennis R. and Jesse D. Lecy. 2014. "Defining the Universe of Social Enterprise: Competing Metaphors " Voluntas 25 (5): 1307-1332. 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