Insights on the Social Enterprise sector
Provisional membership is granted to companies and/or startups that have conducted due validation/pilot of their Social Enterprise model but have yet to establish track record of social impact. Upon achieving their social impact, the Provisional membership may be converted into a full Social Enterprise membership after an annual review.
Breakdown of members by revenue
In FY20, the SE sector size has seen slight growth from $176 Million to $179 Million. It is heartening to know that most of our members who have submitted a membership renewal have shown resilience and effort to grow and/or maintain their social impact, and kept their business sustainable. Overall, there is also a healthy proportion of new members who have joined the community and have moved (13% increase) to the higher revenue bracket of more than $1 Million.
Top 8 Beneficiary Groups that our SEs support
Persons with Disabilities
Low Income Individuals or Families
Social Service Organisations
People with Mental Health Needs
People with Health Conditions
Majority of our SEs create human centric impact for vulnerable individuals in the community such as Persons with Disabilities (PwDs) and low-income individuals. 17% of our SEs also build capacity for Social Service Organisations that support people/communities in need.
We also measure the dollar value of the products and services provided to the beneficiary groups that the SEs serve. Apart from direct impact to beneficiaries, some SEs also build capacity for Social Service Organisations which in turn enable them to directly impact more beneficiary lives.
Business Sectors and Revenue Size
Looking at a 3-year comparison period, albeit a decrease in the number of SEs in the Education and Training sector, it still remains the largest sector that our SE members come from. There has also been a reduction in the revenue generated from this sector due to disruptions to physical classes and training. However, many SEs in this sector have also managed to pivot to virtual classes and have contingency plans ready to meet with the evolving regulations.
It is also notable that we see an increase in the number of SEs coming from the Health & Social Services sector and the Professional Services (accounting, recruitment, legal services etc) sector (from 1.4% in FY19 to 4.4% in FY20). This is consistent with the needs of our community as we entered a pandemic.
Social Impact measurement and articulation is a key component of a SE’s identity. All SE Members of raiSE measure and articulate their impact through a common framework called the Social Value Toolkit consisting of 8 impact areas. Consistent with past years' trend, we see a steady growth in SEs providing employment opportunities to the vulnerable community.
The social impact outcome areas are also commonly aligned to several United Nations Sustainable Development Goals (UNSDGs) when SEs communicate their impact to a wider, global audience. Learn more about how some of our SE members have turned their business into a business for good and how some of our corporate partners have committed to integrating SEs as part of their sustainability journey.