Social enterprise FAQs

Yes.

Social enterprises are businesses that:

• Sell goods or services

• Embed a primary social, cultural or environmental purpose into the business

• Reinvest the majority of profits into their purpose

Both Social Traders and the People and Planet First (PPF) framework share this definition.

PPF adds two criteria on operations and structure, which Social Traders includes under its primacy of purpose criterion.

As part of certification, we review submitted documents and data, and each applicant completes a one-on-one interview with our team.

We assess legal structure (including any related businesses), governing documents, commitment to primacy of purpose, how this is reflected in operations, and how impact is tracked and reported.

Yes, provided you have demonstrated operation of the business and impact model through a proof of concept. To assess start-up organisations (<2 years) we require a business plan communicating the business model of the organisation and how it will achieve its social purpose. We also ask for a 12-month financial forecast.

Not yet. Social Traders can certify start-up organisations who have undertaken a proof of concept of the business and impact model. If you are still in the planning stages of your organisation, we recommend you take some time to solidify your model, put a clear business plan together and test the model with clients and beneficiaries through a pilot or proof of concept. If you're a start-up or business transitioning to a social enterprise, we recommend reviewing the Social Enterprise Fundamentals resources, available on the CSI website.

If you have been operating the business as a social enterprise for at least six months, you can apply for certification. Determination of certification will be made based on the certification criteria.

Yes. If you don’t have complete legal governing documents, such as a constitution or shareholders agreement, you can still be certified by using our Verification Certificate. By the second year of certification, we will request complete legal documentation, with any necessary changes we identify with you to be implemented at this time. Sole traders can use the Verification Certificate in place of legal governing documentation. We have developed a set of example legal terms with Minter Ellison to help you embed terms consistent with operating as a social enterprise into your legal documents. Contact us for a copy of the terms.

Yes, our certification recognises the diversity of impact models and beneficiary groups, including impact being achieved overseas.

This will depend on the complexity of your enterprise, but if all the required evidence is provided at the time of submitting your application, and your business and impact model are clear, the review and clarifications can be completed within two weeks of submission.

Once you have submitted your application, our certification team will assess your application against our certification framework. If you have not provided enough information, or if our certification assessment team need clarification on the evidence you have provided, they will contact you. There is no ‘wrong information’ when it comes to certification. If you’re not sure if you have all the required information, start the application and fill in as much information as you can. Our certification team can talk you through any additional evidence you need to provide.

Currently, our certification process cannot cater for:

• Government entities that don’t operate independently or comply with competition policies
• Private companies that are transitioning to a social enterprise without a clear model and/or earlier than six months operating as a social enterprise,
• Entities without a physical location or entity in Australia, and
• Group structures where public benefit does not outweigh any private benefit.

You can download our guidance notes for more information. There may be other instances where we can’t certify an organisation.

If you feel you’ve been unfairly assessed, please contact us to discuss your options.

As outlined in Social Traders certified social enterprise terms and conditions and licensing agreement you must immediately advise us if any information provided to support your certification application becomes incorrect or untrue. Depending on the change, a reassessment of your eligibility for certification may be required.

Social Traders has a dedicated certification team. Your application will be assessed by one of the members of this team. If you have questions about certification or your application, feel free to get in touch.

Certification with Social Traders is partly funded by our government and philanthropic supporters depending on the state the social enterprise delivers impact.

We also recognise the support from government and philanthropy for subsidising our social enterprise membership packages. Additional subsidy may be available to support membership fees for those social enterprises operating in an emerging market. Talk to us to see if you’re eligible.

Grow package is also subsided by government and philanthropy. Access to further funding varies by state, depending on the subsidies available at the time of application.

• View our Certification Terms and Conditions and Licensing Agreement
• Learn about Our position on Social Washing
• Read up on Our position on social enterprise wages
• Download our Guidance Notes
• View our Certification Complaints and Review Process