Essential business management skills for social enterprise

What is a social enterprise?

A social enterprise is a business that exists to create a social, cultural or environmental benefit while earning income through commercial activity. It places its purpose at the centre of how it operates.

Social enterprises take many forms, but most share four characteristics:

• A clear mission: The organisation exists to address a social or environmental issue.
• Products or services: A significant portion of income comes from selling goods or services.
• Commercial sustainability: The organisation earns enough revenue to keep operating and pursuing its purpose.
• Purpose-led use of profits: The organisation directs its profits towards its social or environmental mission.

These features set social enterprises apart from traditional businesses, and from not-for-profit organisations that rely mainly on fundraising or donations. Social enterprises trade commercially, and their business activities support a broader public or community benefit. 

Types of social enterprises

Social enterprises work across many industries and use different models to create impact. Three common models are:

• Direct benefit models: These businesses provide services, employment or other opportunities that directly benefit particular communities or groups.
• Cross-subsidy models: Commercial activities generate revenue that helps fund services or opportunities for people who may otherwise miss out.
• Profit-redistribution models: The business directs a portion of its profits towards social, environmental or charitable initiatives. 

Some social enterprises combine several models. All of them use commercial activity to create positive social or environmental outcomes. 

5 examples of Australian social enterprises

Social enterprises operate across many industries in Australia. Looking at how existing organisations combine commercial activities with social impact shows how different models work in practice. Here are five Australian social enterprise examples.

1. Vanguard Laundry

Vanguard Laundry  is a commercial laundry service in Toowoomba, Queensland. It provides paid employment, training and career support for people who face barriers to work, including people with lived experience of mental illness.

Vanguard shows how a commercial service can create sustainable employment pathways while supporting a broader social mission.

2. Who Gives a Crap

Who Gives a Crap is an Australian-founded business that sells toilet paper and other household products made from sustainable materials.

The company donates 50% of its profits to organisations that improve water and sanitation around the world. Its model shows how a consumer brand can combine commercial growth with an ongoing social purpose. 

3. The Big Issue

The Big Issue is an independent, not-for-profit organisation that runs social enterprises creating work for people experiencing homelessness, marginalisation and disadvantage. Its programs include The Big Issue magazine, the Women's Workforce and The Big Issue Classroom.

Its model uses commercial activity to create accessible pathways into employment.

4. SEED

Sandgate Enterprise for Economic Development (SEED) is a Queensland-based social enterprise that provides landscaping, parks maintenance and commercial cleaning services. Its social purpose centres on employment and training for people who have been out of work for a long time.

SEED uses commercial contracts to build skills and open pathways to longer-term employment. 

5. The Bread & Butter Project

The Bread & Butter Project is Australia’s first social enterprise bakery, based in Marrickville, Sydney. It produces artisanal bread and other baked goods.

The bakery creates training and employment opportunities for people seeking refuge and asylum in Australia. Its model combines a commercial bakery with practical skills development.

What skills do social entrepreneurs need?

Social entrepreneurs need the same core business management skills as other leaders. They apply them while balancing financial sustainability with a social or environmental purpose.

The most important social enterprise management skills are financial management, strategic planning, leadership, communication, innovation, stakeholder management and impact measurement. Here are 10 essential business management skills for social entrepreneurs.

1. Understanding business models and financial management 

A social enterprise needs a sustainable business model to achieve its purpose over the long term. Social entrepreneurs need to know how their organisation earns revenue, manages costs and stays financially stable.

This includes three areas:

• What you offer (value proposition): The product or service the business provides and why customers choose it.
• How you deliver (operational model): How the organisation delivers its products or services.
• How you earn (revenue model): How the organisation generates income and stays financially sustainable.

Social entrepreneurs also balance the resources needed to grow the business with the resources directed to impact. 

2. Creating an impactful vision and mission

A clear mission gives a social enterprise direction. Social entrepreneurs need to understand the problem they want to address, the people they aim to support and how their business can contribute to change.

That purpose should shape strategy, operations, culture and relationships with customers and stakeholders. A clearly communicated mission also helps employees, customers and partners understand what the organisation stands for. 

3. Understanding business opportunities

A strong social mission still needs a viable market behind it. Social entrepreneurs need to identify opportunities, understand customer needs and test whether demand exists for their products or services.

This can involve researching competitors, reading market conditions and planning how to develop, market, sell and distribute what they offer. Understanding the commercial opportunity helps social entrepreneurs make informed decisions and keeps growth aligned with their purpose. 

4. Strategic planning and decision-making 

Social enterprises balance several priorities, from earning revenue and managing employees to creating measurable impact. Strategic planning helps leaders decide where to focus resources and how each activity supports the organisation's goals.

Strong decision-making skills help social entrepreneurs weigh opportunities, manage risks and adapt their strategy as circumstances change. 

5. Communication and inspiring change

Most social enterprises exist to create change, whether that means providing employment, improving communities, addressing environmental challenges or supporting other causes. To create that change, social entrepreneurs need to communicate well.

They need to explain the organisation's purpose, win support for new ideas and engage employees, customers, partners and communities. Strong communication turns a social mission into something others understand and want to support. 

6. Resilience and adaptability 

Building any business involves setbacks and uncertainty. Social entrepreneurs also balance commercial priorities against complex issues that can take years to address.

Resilience helps leaders respond to setbacks, reassess their approach and keep working towards their goals. Adaptability matters just as much when market conditions, customer expectations or community needs change. 

7. Creativity and innovation

Many social enterprises exist because current approaches have not fully solved a problem. Social entrepreneurs need to think differently, test new ideas and find creative ways to deliver their products, services and social outcomes.

Innovation can also help a business operate more efficiently, respond to changing customer needs and increase its impact.

8. Stakeholder management and emotional intelligence 

Social entrepreneurs work with many people, including employees, customers, communities, government organisations, investors and other businesses. Social and emotional intelligence helps leaders understand different perspectives, communicate clearly and build meaningful relationships.

These relationships support stronger stakeholder networks, new partnerships and more opportunities to achieve the mission.

9. Leadership and team management 

Social entrepreneurs lead both a business and a broader mission. Strong leadership helps employees understand where the organisation is heading, what is expected of them and how their work contributes to its purpose.

Social enterprise leaders also develop their teams, delegate responsibilities and build a culture that supports both commercial goals and social impact.

10. Measuring social impact and business performance

A social enterprise needs to know whether its activities create the outcomes it set out to achieve. That means tracking business performance and social or environmental impact.

Depending on the organisation, this could include revenue and growth alongside outcomes such as jobs created, people completing training, community participation or environmental improvements. Tracking these outcomes helps social entrepreneurs see what works, make better decisions and show their impact to stakeholders. 

How do you start a social enterprise? 

Starting a social enterprise means building a clear purpose and a sustainable way to deliver it. You can begin with these seven steps: 

• Identify the issue you want to address: Define the social or environmental problem you will focus on and who you want to benefit.
• Research similar social enterprises: See what other organisations already do and where you could collaborate or offer something different.
• Understand your market: Identify potential customers and test whether there is demand for your product or service.
• Develop a sustainable business model: Work out how the organisation will earn revenue and still support its purpose.
• Plan your funding and resources: Consider the funding, people, technology and partnerships you need. Funding may include grants, investment, community contributions or other sources.
• Decide on staffing and stakeholders: Identify who will run the organisation and which internal and external stakeholders you need to involve.
• Define how you will measure impact: Decide how you will assess business performance and progress towards your goals. 

There is no single route to a successful social enterprise. The right model depends on the issue, the market, your resources and the people you aim to support. 

How can you improve your business management skills? 

Running a sustainable social enterprise takes commercial knowledge, strategic thinking and leadership. You can build these skills through professional experience, mentoring, industry networks and formal business education.

UNSW Online's Graduate Certificate in Business is a practical place to start. You choose four courses from topics such as financial management, business economics, marketing, ethics, innovation and digital technology. UNSW Online has six study periods a year (called hexamesters). You study one course at a time, about one every two months, and can finish in as little as eight months part time. 

To build broader strategy and leadership skills, continue into UNSW Online's Master of Management. You complete 12 courses in as little as two years part time. You can choose from more than 50 electives or specialise in Business Law or Leadership and Organisational Development, and you finish with a final project (capstone), the Strategic Consulting Project.

The Graduate Certificate in Business is a study pathway into the Master of Management. On successful completion, you may be eligible to continue into the master’s, or you can exit with a Graduate Certificate in Business. If you have completed study in a related field in the past 10 years, you may be eligible for credit for prior study for up to four courses. 

To build knowledge of the legal side of business, consider UNSW Online's Graduate Certificate in Business Law. Speak to a Student Advisor to find the right starting point for you.

Frequently asked questions about social enterprise management

What is social enterprise management?

Social enterprise management is the work of running an organisation that combines commercial activity with a social, cultural or environmental purpose. It covers strategy, finances, employees, operations and stakeholders, and keeps the organisation working towards its intended impact.

What are the most important skills for a social entrepreneur?

Important social entrepreneur skills include strategic planning, financial management, leadership, communication, innovation, resilience, stakeholder management and impact measurement. These skills help balance the commercial needs of the business with its social or environmental purpose.

What is the difference between a social enterprise and a traditional business?

A traditional business generally operates to generate financial returns. A social enterprise also trades commercially but has a defined social, cultural or environmental purpose that shapes how it operates and uses its resources.

Is a social enterprise the same as a not-for-profit?

Not necessarily. Social enterprises earn income through commercial activity and can use any legal structure. Some are not-for-profit organisations, such as The Big Issue, and others are for-profit businesses, such as Who Gives A Crap. What defines a social enterprise is its purpose.

Why are business management skills important for social entrepreneurs?

Business management skills help social entrepreneurs manage finances, make strategic decisions, lead teams, respond to challenges and build sustainable organisations. A social enterprise must stay financially viable to keep creating impact.