Social Enterprise Development Initiative
About the Social Enterprise Development Initiative
The Social Enterprise Development Initiative (SEDI) aims to help social enterprises be more efficient and effective in delivering social benefits to vulnerable people.
SEDI aims to provide support through:
- funding for grants of up to $120,000 to eligible social enterprises to grow and help more people facing disadvantage. This includes grants for First Nations social enterprises.
- funding for online activities to help the wider social enterprise sector build knowledge and skills.
The SEDI program runs for 4 years – from 2023–24 to 2026–27. The Australian Government initially committed $11.6 million for 3 years until June 2026. This was part of the Targeting Entrenched Disadvantage package.
Further commitments include $3.3 million focused on First Nations social enterprises and $3.4 million to extend SEDI to June 2027.
These investments are to support the growth and impact of the social enterprise sector in Australia.
Creating SEDI
In 2023, we worked with Social Enterprise Australia (SEA) to gather ideas from the sector to help design the SEDI. SEA engaged with the sector through workshops and surveys.
Read the summary of the views SEA collected(Opens in a new tab/window).
SEDI also drew on the success of the Sector Readiness Fund. The $8 million fund ran from 2018 to 2023. It provided grants to social enterprises to be able to attract more investment and increase their impacts.
How SEDI works
SEDI supports capability building to the social enterprise sector through:
- grants to support individual social enterprises, including First Nation social enterprises
- online sector-wide education, learning and connection.
We partnered with a number of organisations to deliver SEDI:
- Impact Investing Australia(Opens in a new tab/window) (IIA), is the SEDI Capability Building Grants Administrator
- Impact Investing Australia(Opens in a new tab/window) (IIA), in a consortium with Indigenous business Malu Pty Ltd, is the First Nations Capability Building Grants Administrator.
- Social Enterprise Australia(Opens in a new tab/window) (SEA) is the SEDI Education and Mentoring Coordinator.
These organisations helped us to be flexible and creative in developing SEDI. It also helped to embed SEDI in the sector.
SEDI grants
We selected IIA to be the SEDI Grants Administrator following an open, competitive grant round.
SEDI Capability Building Grants support social enterprises to buy capability building services from their nominated specialist advisers (intermediaries). Eligible activities include:
- business planning
- financial management
- contract negotiation
- legal support
- outcomes measurement and evaluation
- help to access finance such as investment loans or grants.
Initially funded for 3 years, IIA ran 8 competitive grant rounds and selected 56 social enterprises for grants of up to $120,000 each.
IIA received more than 900 expressions of interest and more than 400 applications. There was strong representation from First Nations, rural and regional social enterprises.
Applications for the original $6 million in SEDI Capability Building Grants closed on 30 September 2025.
Additional SEDI Capability Building Grant rounds will open in 2026-27. More details will follow as they become available.
SEDI First Nations grants
In 2026, we selected IIA in consortium with Malu Pty Ltd to be the SEDI First Nations Grants Administrator. This was following a targeted, competitive grant round.
We will share details of how First Nations social enterprises can apply for grants under this initiative soon.
SEDI education and mentoring
The SEDI education and mentoring activities are online and available to the whole sector. They complement the individualised support provided by the SEDI Capability Building Grants.
SEA is the SEDI Education and Mentoring Coordinator. It is the Australian social enterprise peak body and grew out of the sector. SEA’s mission aligned with the goals of the SEDI Education and Mentoring activity. The partnership means the sector has a voice in SEDI.
Understorey
Under SEDI, SEA developed a centralised online hub for sector resources called Understorey. The website hosts leading practice resources, tools and training modules. Understorey is designed to change and grow over time, in response to participant feedback.
Understorey also helps people in the sector to connect. It includes a sector-guide and a list of sector organisations. It commissions and hosts online learning and peer mentoring communities. These are for social enterprises at different stages of development.
Feedback from the sector will help Understorey to evolve beyond the life of the SEDI program.
Working with the sector
We encourage anyone in the sector to reach out to SEA with any ideas or feedback on Understory. Let SEA know what content and support you would like it to provide. Please email hello@socialenterpriseaustralia.org.au.
To find out more about getting involved visit SEA(Opens in a new tab/window).