Conversation 2: Social Enterprise Legal Entity
The purpose of this thread is to discuss what potential methods and options we can consider SE as a lone legal entity rather than considering various options in existing business structure.
Mathew Townsend Sat 13 Jul 2019 7:24AM
Totally agreed @taniacobham . That article highlights my experiences as a social entrepreneur. Being in accelerator programs with mainstream startups, we always being overlooked. I find there some sort of attitude and cultural influence in business investment sector against 'impact towards people' rather than impact towards profits. It sad world indeed
Sandy Blackburn-Wright Wed 31 Jul 2019 1:53AM
Just by way of background, we have been lobbying the federal government at every opportunity about a hybrid structure since 2011. We obviously want it to be able to take on debt and equity as well as grants. There has been very little interest over that time but it may be that in the last 12 months that its changing.
Rena Frohman Wed 31 Jul 2019 1:59AM
HI @sandyblackburnwrig
Thank you for the extra background information - I'm hoping as @mathewtownsend mentioned that this issue can be explored more deeply during the Unconference as a way to build on changes and momentum that seems to be building across the sector.
Mathew Townsend Thu 1 Aug 2019 5:04AM
Thanks @sandyblackburnwrig and @renafrohman . Yes we will establish this topic at the Unconference.
Mathew Townsend Mon 9 Sep 2019 10:35PM
Hi all. With respect about the social enterprise legal for Qld state. Unfortunately, I come to conclusion we need to pause this for now. There are lot of legal obligations happening with existing and emerging social enterprises in Qld are registered with the NDIS. The NDIS is under federal legislation. If social enterprise is recognised at state level at being a NDIS provider it won't be approved.
It becomes like this:
NDIS service provider but not a social enterprise
Social enterprise organisation but not a NDIS service provider
This comes an issue of identity between state and federal legals. If social enterprise recognised at national level, this will become a better solution.
I apologise to everyone who investing time for the legals at Qld state level
Tania Cobham · Tue 9 Jul 2019 1:07AM
See reference to this topic in today's Probono news:
“Entrepreneurs with low self-efficacy are likely to lack confidence when talking to banks, venture capitalists or equity investors,” the report said.
Social Change Central co-founder Anne Lennon told Pro Bono News that Australian social entrepreneurs faced similar barriers.
“A lack of awareness of and access to funding options is definitely a barrier for Australian social entrepreneurs,” Lennon said.
She also said the legal landscape for social enterprises posed a challenge when scaling, with many having to choose between structuring as a not-for-profit or a for-profit organisation.
“They may seek to rely on grant funding in the startup phase but then in order to scale they may require equity investment,” she said.
“However there is currently no distinct legal structure for social enterprise in Australia that easily accommodates this. It is complex and requires specialist advice.”
Full article: in attachment below