Federal government public spending of circa $350 billion per annum includes many billions on ‘band-aid’ solutions to problems that require systemic changes to address their underlying causes. The role of the Federal Government in enabling and supporting social impact/benefit corporation business structures is an important (zero cost) policy tool which would encourage the incorporation (or re-incorporation) of profit for purpose businesses and impact investment flows
The US, UK, Canada and several EU jurisdictions have already created such structures, leading to a thriving ecosystem of businesses and startups which exist to make money while doing good. Such structures are important in leveraging trillions of dollars globally in private equity into impact investment. Further, it speaks to an increasingly conscious consumer sentiment. And finally, and significantly, it has government spending upside as private enterprises are developed to solve some of our most intractable social problems.
Click here to download Impact Seed’s submission to Social Impact Investing Discussion Paper – January 2017
*Table extract: global social impact business incorporation structures Vs Australia: