New report calls for shifts in how philanthropy supports the country’s social enterprise ecosystem

A new national report supported by Philanthropy Australia is challenging philanthropy to rethink how it enables Australia’s social enterprise ecosystem. It calls for longer-term, more flexible and more collaborative funding approaches that better reflect how systems change actually happens. 

Shaping & Fuelling Change: The role and practices of philanthropy in the social enterprise ecosystem in Australia examines more than two decades of philanthropic involvement in the growth of social enterprise. It draws lessons from what has supported the field’s development and where funding practice has unintentionally limited progress. 

The research was led by May Miller Dawkins and co-produced with the social enterprise sector, with support from Philanthropy Australia members the Siddle Family Foundation, English Family Foundation, and Westpac Foundation. Based on interviews, focus groups and case studies from across the country, the research reflects more than 20 years of sector development. 

Together, the findings paint a nuanced picture of philanthropy’s distinctive, and sometimes disproportionate, influence in shaping the ecosystem. 

Philanthropy’s catalytic role 

Philanthropic capital has enabled the establishment of critical social enterprise infrastructure, supported field‑defining initiatives and piloted approaches later scaled by government. From early investment in intermediaries to coordinated funding around sector‑wide priorities, philanthropy has often acted where other sources of capital could not move as quickly or flexibly. 

At the same time, the report highlights that philanthropic influence cuts both ways. Funding choices have shaped which models gained traction, which regions were resourced and whose voices were amplified, sometimes reinforcing concentration and inequity across the ecosystem. 

An ecosystem at an inflection point 

The report positions the social enterprise sector at a pivotal moment. It comprises about 12,000 organisations, employs more than 206,000 people and contributes $21.3 billion to the national economy, according to data from Social Enterprise Australia. Government interest is increasing, and national organising structures have emerged. Yet much of the ecosystem remains at a formative stage, with uneven progress across regions and communities. 

Persistent challenges include short funding cycles that do not align with the timeframes required for systems change, underinvestment in shared infrastructure, and limited support for First Nations‑led initiatives and regional ecosystems. Shifts in philanthropic strategy have also, at times, resulted in abrupt funding cliffs following periods of growth. 

From projects to systems 

A central finding of Shaping & Fuelling Change is the need for philanthropy to shift focus from asking “how can I create impact with my available capital?” to “what does the system need, and what role can I play?” 

The report argues that effective ecosystem development requires investment across three interconnected levels: individual enterprises; ecosystem infrastructure such as intermediaries and networks; and system‑wide initiatives that enable coordination, learning and advocacy. Doing so requires longer time horizons, more flexible funding structures, and funding relationships grounded in trust, stewardship and learning rather than transactional compliance. 

Importantly, the report does not prescribe a single model of best practice. Instead, it offers insights to support better practice, recognising that ecosystem work is complex, relational and often emergent rather than linear or predictable. 

First Nations governance and power 

The research also highlights the need for stronger recognition of First Nations leadership, governance and community‑led decision making. Many Indigenous businesses are inherently social in purpose, grounded in care for community and Country, yet have often been excluded from funding frameworks shaped by narrow definitions of social enterprise. 

The report calls on funders to move from viewing support for First Nations enterprise as an opportunity to recognising it as a responsibility, including by placing capital under Indigenous governance and simplifying processes that remain extractive or misaligned. 

A learning resource for funders 

For philanthropy, Shaping & Fuelling Change is intended as a practical learning resource that invites reflection on how funding decisions shape systems over time. 

As Belinda Morrissey, CEO of the English Family Foundation notes the findings reinforce the importance of humility, collaboration and long‑term commitment if social enterprise is to thrive and deliver lasting impact. 

Read Shaping & Fuelling Change: The role and practices of philanthropy in the social enterprise ecosystem here.