When the morning rush hits a small café in Melbourne's Collingwood, the smell of coffee hides a quiet revolution. Behind the counter at STREAT are young people who've experienced homelessness and other forms of disadvantage, now training in hospitality. Every flat white poured helps someone build skills, confidence and independence.
STREAT is part of a growing movement of social enterprises proving that doing good can also be good business. These are firms that trade for purpose as well as profit, and they're changing what productivity looks like in Australia.
Across the country, around 12,000 social enterprises employ more than 200,000 people. They operate in construction, recycling, retail, logistics and food. They compete in the market, pay wages, and reinvest their earnings in people and communities.
Good Cycles in Melbourne employs young people who've struggled to find steady work, maintaining e‑bike fleets for councils and delivery companies. The more contracts they win, the more lives they change. Outlook Australia runs a recycling facility that employs people with disability, combining environmental and social sustainability in one business model. And in regional New South Wales, Chocolate on Purpose blends Indigenous bush foods with handmade chocolate - creating jobs, celebrating culture and showing that ethics and enterprise can thrive together.
What unites these ventures is a belief that inclusion is not a cost but an investment. When someone who has been locked out of the workforce finds a foothold, productivity rises. Skills grow. Confidence returns. Spending power flows into local communities. The economy becomes not just larger but fairer and stronger.
Research backs this up. A Swinburne University study found that social enterprises produce around a third more value per worker than the average small or medium‑sized business. They achieve this by investing in people through mentoring, training and support. They understand that human capital is their most valuable asset.
The outcomes can be life‑changing. In a recent trial run by White Box Enterprises, people who had been out of work for long periods were placed into jobs with social enterprises. Two years later, two‑thirds were still in award‑wage employment. Some stayed with the same employer, others moved into mainstream work. Almost all said their lives had improved. For business owners, that's what sustainable productivity looks like.
Partnerships help these enterprises grow. The University of Melbourne found that social enterprises creating the most jobs tended to have long‑term relationships with large clients. Those contracts give them the stability to train more people, expand operations and innovate.
That lesson applies to any business. Whether you run a bakery, an engineering firm or an accounting practice, the relationships you build determine your resilience. The best partners are those who share your values as well as your invoices.
More companies are starting to recognise this. Customers prefer brands that contribute to their communities. Employees, especially younger ones, are drawn to organisations that stand for something. Purpose attracts talent and builds loyalty. It turns transactions into relationships.
Visit a social enterprise workshop or warehouse and you'll see what that culture looks like. There's the same drive to meet deadlines and balance budgets, but the motivation runs deeper. People know that their work matters. That sense of purpose boosts effort, reduces turnover and creates a spirit of collaboration that spreadsheets alone can't capture.
For entrepreneurs, this isn't just a moral choice. It's a competitive one. Building social value into your business model can open new markets, strengthen your brand and make you more adaptable when times get tough. It can also remind you why you started your business in the first place.
Social enterprises show that capitalism and compassion can coexist. The invisible hand of the market works best when it's connected to the helping hand of community. Every small business can take inspiration from that idea.
Purpose does not require a big marketing budget or a boardroom manifesto. It can start with one hiring decision, one supplier choice, one idea for how your business might solve a local problem.
If more Australian firms take that approach, 'business as usual' could come to mean something new: an economy where every dollar spent creates both profit and purpose.
