The Minns Labor Government has joined with Business Sydney to launch a new report highlighting the growing economic and social contribution of social enterprises and outlining how government and business procurement can help unlock their full potential.
Released today at Business Sydney’s Social Enterprise: Unlocking Life Changing Economic Power event, the report shows around one-third of Australia’s social enterprises are based in NSW, contributing almost $9 billion to the state economy in the year to June 2025, while creating jobs and training opportunities for people facing the greatest barriers to employment.
The launch comes as the Minns Labor Government is implementing a series of procurement reforms designed to drive local economic development and create more jobs for NSW workers and businesses, that will create new opportunities for social enterprises.
These reforms include establishing a Local Jobs First Commission to support local industries, and introducing an ‘If not, why not’ mandate requiring NSW Government agencies to engage with local NSW suppliers before going to tender for projects worth more than $7.5 million.
Social enterprises are businesses that trade with a social, cultural or environmental purpose. They operate across a wide range of industries, from construction, cleaning and hospitality to technology, logistics, training and design, combining commercial success with a commitment to people and the planet.
By engaging social enterprises through procurement policies, the NSW Government is supporting inclusive economic development that delivers financial value alongside measurable social and environmental impact for local communities.
This approach aligns with the NSW Performance and Wellbeing Framework, which recognises the importance of considering social, wellbeing and economic outcomes alongside the performance of government services.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos will today address social enterprise and business leaders at Business Sydney’s event to formally launch the report. The report includes a five-point plan to support the long-term growth and sustainability of the sector, alongside case studies demonstrating the impact of social enterprises across NSW.
Business Sydney Executive Director Paul Nicolaou welcomed the NSW Government’s leadership in recognising social enterprises as a valued and growing part of the state economy.
The report highlights that social enterprises reinvest an average of 27 per cent of their revenue into social and environmental impact, with 43 per cent of jobs going to people facing the greatest barriers to employment. It also points to research showing how governments can achieve cost savings when investing in social enterprises through procurement.
The event provides an opportunity to recognise the significant contribution social enterprises make to the NSW economy and to encourage more businesses to include them in their own procurement policies.
To view the report, visit the Business Sydney website
Minister for Domestic Manufacturing and Government Procurement, Courtney Houssos said:
“Social enterprises deliver genuine economic and social benefits for communities across NSW.
“By joining with Business Sydney to launch this report, we are highlighting the important role social enterprises play in creating jobs, strengthening communities and driving inclusive economic growth.
“Many of these organisations are deeply connected to their local communities, reinvesting profits back into services, training and employment opportunities for people who need them most.
“The Minns Labor Government is using the weight of government procurement to drive better outcomes for NSW, which means more local jobs, stronger supply chains and more inclusive growth.”
Business Sydney Executive Director Paul Nicolaousaid
“The Government’s Local Jobs First Commission and its “if not, why not” mandate for government agencies to engage with NSW suppliers before going to tender for projects valued at more than $7.5 million could also benefit social enterprises.
“It is just as imperative that businesses give due consideration to engaging with social enterprises by making them part of their supply chain procurement policies.
“We would like to see businesses follow the government’s lead in recognising social enterprises as one of the most innovative and inspiring sectors of the business community.
“With 4,000 social enterprises in NSW contributing $9 billion to the state economy, our state is the leader in this growing sector.
“Social enterprises give vulnerable groups in the community to find work and career opportunities that might not otherwise exist, and we must do everything possible to help them prosper.”