Today, there are 150 million startups worldwide, with 50 million new startups launching annually. On average, approximately 137,000 startups emerge every day. Among these, there are roughly 10 million social enterprises, collectively generating around $2 trillion in revenue annually, all while creating positive impacts.

Firstly, what exactly is a social enterprise? Social enterprises are businesses driven by a social purpose. They aim to benefit the public, community, and environment rather than solely focusing on shareholders and owners, by reinvesting most of their profits towards a purpose.

Social enterprises must fulfill three criteria:

  1. Have a defined primary social, cultural, or environmental purpose consistent with public or community benefit.

  2. Derive a substantial portion of their income from trade.

  3. Invest efforts and resources into their purpose to ensure that public/community benefit outweighs private benefit.

However, the truly remarkable ones are those that donate 100 percent of their profits, or close to it, to effective charities that make a substantial positive impact. It’s growing in popularity too: The social enterprise sector surpasses the $1.57 trillion apparel industry and is twice the size of the $875 billion advertising industry.

Having worked in the For-Purpose sector in Australia for over a decade, I can cite two exemplary social enterprises in this country.

Thank You Brand.

Thank You brings consumers a product choice designed for a singular purpose: to contribute to a world where no one lives in extreme poverty. Offering top-notch hand soaps, body washes, baby wipes, and other cleaning products, Thankyou operates by 2 steps - Step One: They create products that customers love, designed to be kind to humans and the planet. Step Two: They allocate every cent of profit (after the costs in Step One) to help end extreme poverty.

Hold up… what does that mean? You mean they have no shoreholders? Correct! The group has a sole shareholder, The Thankyou Charitable Trust. The founders don’t have any equity in or receive dividends from the company. The founders (who started Thank You in2008¹ as teenagers) are both paid a salary consistent with referable organisations in the Australian charitable sector – they even volunteered their first 2.5 years of work in Thankyou Group.

To date, Thankyou Group has raised $18.1 million AUD for the Thankyou Charitable Trust.

Personally, I use Thankyou products, including their hand soaps, body wash, and baby wipes for my one-year-old. While their product itself may not significantly differ from other high-quality products on the shelf, knowing that my purchase contributes to a meaningful cause sets it apart. The profits aren't lining the pockets of corporate executives in boardrooms; they are actually making a tangible difference in the world.

Humantix

Another notable social enterprise in Australia is Humanitix. Founded in 2016 by high school friends Adam McCurdie and Joshua Ross, Humanitix is a ticketing company that prioritizes humanity. Based in Sydney, it operates as a not-for-profit organization dedicated to funding worthwhile projects in Australia and abroad.

Humanitix channels 100 percent of its profits from booking fees to charities supporting education, health, sustainability, humanitarian efforts, and other noble causes. Since its inception, Humanitix has donated $10 million to various projects and now operates in North America, the U.K., and across the Tasman. Sorry what…? $10m in donations!?

Again, their product is slick and easy to use – it’s a seriously great product but it’s no different from other ticketing companies out there at the end of the day. People use it and companies partner with them Why? Because their profits ain’t going to that group of faceless board directors laughing at their gigantic quartlery earnings profit!! Don’t believe me? Humanitix has become the fastest-growing ticketing platform in Australia and New Zealand, and is now establishing itself in the United States!!

Integrating giving into your business model from the outset offers distinct advantages. While it may seem counterintuitive and invite skepticism, it’s clear it provides a significant competitive edge. As exemplified by Thankyou and Humanitix, businesses that prioritise social impact alongside profitability can leave a lasting impression on both their brand and the world.