I acknowledge the Ngunnawal people, traditional custodians of the land on which we meet, and pay my respects to Elders past and present. I extend that respect to all First Nations people joining us today.
Good morning everyone.
If you've chosen a breakfast about productivity over a sleep‑in, that's proof you already believe in getting things done.
Today we're talking about a simple but powerful idea: that doing good is not the opposite of doing well. That the most productive economies are those that make the best use of their people, all their people.
Because productivity isn't just about working faster. It's about working smarter, and in a fair society, it's also about making sure no one's potential is wasted.
Inclusion enhances productivity. When more Australians are empowered to reach their potential, the economy allocates talent more efficiently.
That's true for women entering male‑dominated fields, for people with disability finding meaningful work and for Australians from disadvantaged backgrounds building careers.
The statistics may not always capture the gains immediately, but the long‑term benefits are undeniable. Productivity is what creates fiscal room for generosity, social room for imagination and personal room for choice.
And that's where social enterprises come in.
Social enterprise is business at its best, powered by trade, driven by purpose.
Across Australia there are now an estimated 12,000 social enterprises, employing over 200,000 people and contributing billions to the economy.
Social Traders' latest report shows that 86 per cent of social enterprise revenue comes from trade, and 23 per cent are entirely self‑funded through their business model.
These organisations show that markets and morals aren't mutually exclusive, they're mutually reinforcing. Every sale, every contract, every cup of coffee poured by STREAT or every kilometre of bike delivered by Good Cycles delivers both economic and social value.
When we talk about the productivity puzzle, social enterprises are part of the solution. They put under‑used talent to work. They turn social challenges into economic opportunities. And they prove that inclusion is not a cost to be borne, but a source of growth to be tapped.
The data backs it up.
Research from Swinburne University found that the labour productivity of social enterprises - measured as value added per worker - is 33 per cent higher than the average for all small and medium‑sized enterprises.
That's not because social enterprises cut corners. It's because they invest in people: training, mentoring, wraparound supports - the ingredients of human capital that mainstream businesses sometimes neglect.
An evaluation for government's jobs‑focused social enterprises Payment by Outcomes trial led by White Box Enterprises was conducted by the Centre for Social Impact at Swinburne University. At the end of the second year of the trial it found 88 of the 132 participants were still in award wage employment. Of these, 64 are employed in a social enterprise and 24 have transitioned to mainstream employment.
Nearly all said their lives had improved and reported higher annual incomes. That's not only a social dividend, it's a productivity dividend.
If more Australians move from welfare to wages, from insecurity to stability, they gain confidence, skills and spending power. That's how inclusive growth becomes compounding growth.
The University of Melbourne's recent study on Work Integration Social Enterprises found that those able to scale employment outcomes had one thing in common: strong partnerships. They built anchor contracts with governments and corporates, larger, longer‑term deals that gave them stability and space to train and employ more people.
In other words, scaling social impact depends on scaling market access.
That's where procurement, and events like this breakfast, matter most.
When government and business spend billions each year, the question isn't whether we spend, but how wisely we spend.
Social Traders modelling suggests that improved Commonwealth social procurement could deliver 44,000 jobs for marginalised Australians and generate more than $4 billion in savings to society by 2030.
That's an extraordinary return on investment, not from new spending but from smarter spending.
We've already seen the potential in the states. Over the past 7 years, Social Traders estimates that they have helped catalyse more than $1.1 billion in contracts for social enterprises through partnerships with major corporations and state governments.
The Albanese government is backing social enterprise in practical ways.
We're supporting the Social Enterprise Loan Fund, contributing $1.2 million alongside Westpac Foundation, Macquarie Group Foundation, and others to unlock a total of $4.2 million for purpose‑driven businesses. The fund provides loans of up to $500,000 to social enterprises that create jobs for Australians facing disadvantage.
Through the Social Enterprise Development Initiative, we've provided more than $3.5 million in grants to over 30 enterprises, helping them with financial planning, business strategy and impact measurement.
The online hub Understorey, delivered with Social Enterprise Australia, has become a go‑to resource for capability‑building, education and connection across the sector.
And through our Free TAFE partnership with the states and territories, there have already been more than half a million enrolments in courses that will help fill skills gaps. Many of those learners will find their first opportunities in the social enterprise sector.
Together, these initiatives form part of a broader productivity agenda, one that recognises that the best way to grow an economy is to grow its people.
Let me bring it down from policy to people.
The social enterprise Outlook Australia runs a recycling facility that employs people with disability, offering training and stable jobs in an industry that's both green and growing.
In Melbourne, Good Cycles employs young people who've struggled to find steady work, maintaining bikes and e‑cargo fleets for councils and delivery firms. Their business model is simple: the more bikes they service, the more lives they change.
And in regional New South Wales, Chocolate on Purpose combines Indigenous bush foods with artisanal chocolate, creating jobs, sharing culture and proving that delicious things can also do good.
Each of these examples reminds us that productivity isn't an abstract ratio in a spreadsheet. It's a person's first pay cheque. It's a business thriving because it measures success in more than profits.
Productivity turns potential into prosperity.
Social enterprises do that every day. They take human potential that the market overlooks and turn it into prosperity for everyone.
They're living laboratories for the kind of economy we want: one that's dynamic, inclusive and purposeful.
They show that the invisible hand of the market works best when it shakes hands with the helping hand of community.
So let's reimagine what productive business looks like. It's not just bigger outputs or faster processes. It's building a society where every person can contribute and every dollar we spend does double duty, delivering economic value and social good.
If we get this right, the phrase 'business as usual' will take on new meaning, one where purpose is normal and where profit and progress walk hand in hand.
Let's help social enterprise flourish across Australia. Because the productive power of purpose isn't just good ethics. It's good economics.
