Sustainable Victorian social enterprise and Aboriginal business sectors is one of seven social procurement objectives included in the Social Procurement Framework.
Corresponding social outcomes
The Social Procurement Framework identifies one social outcome corresponding to this social procurement objective:
Purchasing from Victorian social enterprises and Aboriginal businesses.
- For individual procurement activities valued below $1 million (regional) or $3 million (metro or State-wide) (exclusive of GST), government buyers seek opportunities to directly or indirectly procure from Victorian social enterprises or Aboriginal businesses.
- For individual procurement activities valued at or above $1 million (regional) or $3 million (metro or State-wide) up to $20 million (exclusive of GST), government buyers consider whether part of the procurement can be unbundled for delivery from Victorian social enterprises or Aboriginal businesses.
- For individual procurement activities valued at or above $20 million (exclusive of GST), government buyers set targets for supplier expenditure with Victorian social enterprises or Aboriginal businesses and ask suppliers to demonstrate how they will meet such targets.
Purchasing from Victorian social enterprises and Aboriginal businesses
Benefits for Victorians
Victorian social enterprises and Aboriginal businesses play an important role in driving employment participation and inclusive economic growth.
The Victorian Government recognises that:
In relation to social enterprises:
- The Map for Impact Report (November 2017) found that Victoria’s social enterprise sector is a significant contributor to the Victorian economy, creating jobs for over 60,000 people (equating to approximately 35,000 full-time equivalent jobs); and
- Over 30 per cent of social enterprise workers are from cohorts that face particular challenges in gaining mainstream employment, such as people with a disability, Indigenous Australians and long-term unemployed people.
In relation to Aboriginal businesses:
- Victorian Aboriginal people, organisations and businesses already make valuable contributions to Victoria's diverse economy;
- The Victorian Aboriginal business sector is large, diverse and includes for-profit businesses, social enterprises and community enterprises;
- Aboriginal economic development is vital to growing Victoria's wealth generally and to increasing overall economic productivity and competitive advantage; and
- Aboriginal economic participation and development is also a vital foundation for self-determination.
The Victorian Government has set a target of one per cent of government procurement from small to medium enterprises to be from Aboriginal businesses. This target is to be achieved by 2019-2020.
Model approach for government buyers
There are two model approaches to delivering this outcome:
- Direct approach to social procurement – selectively target Victorian social enterprises and Aboriginal businesses or, alternatively, ensure that Victorian social enterprises and Aboriginal businesses are included in any market approach.
- Indirect approach to social procurement – require mainstream suppliers to include Victorian social enterprises and Aboriginal businesses within their supply chain (e.g. by way of sub-contracting).
Where appropriate, government buyers may also require suppliers to evidence their status, or the status of suppliers in their supply chain, as a Victorian social enterprise or Aboriginal business.
Further information for buyers
Tools and support
Reviewed 09 October 2019