Social enterprise in NZ has untapped potential

A new report into the progress of Social Enterprise suggests New Zealand is up to fifteen years behind other countries supporting this approach to address social and environmental challenges.

The independent report based on interviews with 25 Kiwi social sector leaders, recommends government review the legal framework for establishing social enterprises and invest in the sector to help start-ups and growing social enterprises. Further recommendations include investment in and promotion of Māori social enterprise (from government and philanthropy), establishment of a national network body and storytelling to raise awareness.

According to the report’s author, Annette Culpan, there is still limited understanding of social enterprise and how it can contribute, in the NZ public.

“Social enterprise is a business that trades to tackle issues and these types of organisations are changing the thinking about social, environmental and community challenges in places such as Scotland, Ireland and the UK.

“Issues such as child poverty, inequality and climate change have not been successfully addressed. If we are to see a shift we must behave differently. Social enterprises have the ability to move us away from the charity mindset to more self-sufficient organisations,” says Culpan.

The report, Social Enterprise Insights Aotearoa, notes that Māori values and enterprise are already aligned with this way of operating and that pockets of social entrepreneurship are thriving around the country.

Unlike countries such as the States and Scotland, however, New Zealand does not have an amenable legal framework for social enterprises nor widespread understanding of what they are.

“If you ask business, they will assume it’s charity and non-profit organisations often see it as business.

“In fact, social enterprises are the best of both worlds and enabling them to register separately, easily receive philanthropic funding and tax incentives would be a major boost,” says Culpan.

Interviewees called on the government to review the conditions to enable social enterprise to thrive in this country.

Capability and capital investment were also top of mind for the leaders interviewed with one noting that like small businesses, start up social enterprises are vulnerable.

The areas of social impact investing (funding mechanisms and schemes specifically aimed at helping social entrepreneurs) and social procurement (business and government actively seeking suppliers whose profits are invested in addressing social or environmental issues) were also singled out as focus areas.

Examples of current successful social enterprises in New Zealand referenced by the interviewees include Whale Watch, Kilmarnock Enterprises; Cargill Enterprises; CBEC; Chalkle; The New Zealand Housing Foundation; 4 Trades ; Conscious Consumers and People’s Coffee.

ENDS

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