In a compelling argument for purpose-driven business, legal professional and commentator Emma Garlett has highlighted the significant dual benefits that social enterprises bring to Western Australia. She contends these organisations are not only powerful engines for economic activity but also vital solvers of entrenched social and environmental problems within local communities.
The Dual Power of Purpose-Driven Business
Garlett defines a social enterprise as a business that trades with the primary objective of fulfilling a social, cultural, or environmental mission. Any profits generated are principally reinvested towards achieving that mission, rather than being distributed to shareholders. This model, she argues, creates a powerful virtuous cycle where commercial success directly fuels community improvement.
This approach stands in stark contrast to traditional corporate philanthropy or charity. Instead of relying on donations or grants, social enterprises operate in the competitive market, proving their value through sustainable business models. Their success is measured not just in financial returns, but in the tangible social impact they create—whether that's providing employment for long-term unemployed individuals, offering training in disadvantaged areas, or delivering essential services in remote locations.
Economic and Community Impact in Western Australia
The potential for social enterprises to contribute to WA's prosperity is substantial. Garlett points out that these businesses create jobs, stimulate local economies, and can often deliver services more effectively and innovatively than government or traditional private sector models. They address market failures and community needs that are often overlooked.
For instance, a social enterprise might employ and train people facing significant barriers to work, such as former prisoners or those with disabilities, integrating them into the workforce and reducing welfare dependency. Another might focus on environmental sustainability, offering recycling services or sustainable products that benefit the state's unique natural environment.
The key to unlocking greater impact, according to Garlett, lies in 'social procurement'. This is where government agencies, large corporations, and institutions deliberately choose to purchase goods and services from social enterprises. By leveraging their immense buying power, these large organisations can create a stable and significant market for social enterprises, allowing them to scale their operations and amplify their community benefits.
A Call for Supportive Policy and Conscious Consumerism
Emma Garlett's commentary serves as a clear call to action for both policymakers and the public in Western Australia. She advocates for government to play a more active role in fostering the social enterprise sector. This could include implementing formal social procurement policies, offering targeted business support, and creating a regulatory environment that recognises and encourages this hybrid business model.
Beyond government, there is a role for everyday West Australians. Consumers and businesses can consciously choose to support social enterprises, recognising that their spending power is a tool for positive change. By buying from a social enterprise, customers are not just acquiring a product or service; they are directly investing in a community outcome.
The future of a resilient and inclusive WA economy, Garlett suggests, may well depend on embracing and scaling this model. Social enterprises represent a pragmatic and powerful fusion of market discipline and social conscience, proving that economic success and community wellbeing are not mutually exclusive, but can be powerfully aligned for the benefit of all Western Australians.
