When people talk about scaling a social enterprise, they usually mean growing bigger — more revenue, more staff, more locations. But growth isn’t one-size-fits-all, and the model that works for a tech startup won’t necessarily work for a social enterprise that relies on community relationships and local context.

Here are seven scaling models I’ve seen Australian social enterprises use, with honest assessments of when each one works and when it doesn’t.

1. Organic growth

The simplest model: grow your existing operations gradually. Serve more customers, hire more staff, expand your geographic reach — but do it incrementally, funding growth from earned revenue.

When it works: When your model is proven, your market is large, and you can grow without diluting quality. Many successful social enterprises have grown this way, maintaining control and culture.

When it doesn’t: When the social problem you’re addressing is urgent and large-scale, and gradual growth means too many people go unserved for too long. Also doesn’t work when your sector has high fixed costs that require scale to be viable.

Australian example: STREAT in Melbourne grew organically from a single food van to multiple hospitality venues over more than a decade, building each new venue on the success of the last.

2. Replication

Open additional locations using the same model. Think franchise-style expansion, but typically without franchise fees.

When it works: When your model is highly systematised and works in multiple locations with relatively little local adaptation. Hospitality, retail, and service delivery models often suit replication.

When it doesn’t: When your model depends heavily on local context, relationships, or specific community conditions. What works in Melbourne’s inner north might not work in Western Sydney or regional Queensland.

3. Licensing and franchising

Allow other organisations to use your brand, model, and systems in exchange for fees or adherence to standards.

When it works: When you’ve developed a proven model with clear processes that others can follow. It allows rapid geographic expansion without the capital and management demands of opening your own locations.

When it doesn’t: When quality control is critical and hard to maintain at a distance. Your brand reputation depends on every licensee delivering to your standard.

Australian example: The Nappy Collective uses a decentralised model where volunteers run local collection drives using the organisation’s brand and processes.

4. Partnership and coalition

Instead of growing your own organisation, partner with existing organisations that can deliver your model or complement your services.

When it works: When there are established organisations with the infrastructure and relationships you’d need to build from scratch. Particularly effective in the social sector, where duplication of services is wasteful and collaboration can be more efficient than competition.

When it doesn’t: When partners don’t share your quality standards or values, or when the coordination costs of managing multiple partnerships exceed the benefits.

5. Technology-enabled scaling

Build a digital platform that allows your model to reach more people without proportional increases in staff or infrastructure.

When it works: When your value proposition can be delivered digitally or significantly enhanced by technology. Education, information services, and marketplace models are natural fits.

When it doesn’t: When your impact depends on face-to-face relationships, physical presence, or hands-on service delivery that can’t be digitised. Social enterprises exploring this path often benefit from working with technology partners — AI consultants in Brisbane and similar firms can help design platforms that scale service delivery without losing the human touch.

Australian example: Humanitix, the Australian social enterprise ticketing platform, scaled rapidly because its model — ethical event ticketing — is inherently digital and can serve any event anywhere.

6. Open-source spreading

Give away your model, tools, and knowledge for free. Let anyone use them. Focus your own organisation on innovation, quality assurance, and sector development rather than direct delivery.

When it works: When the social impact of spreading your model widely exceeds the value of controlling it. When your goal is systems change rather than organisational growth. And when your model is robust enough to work without your direct involvement.

When it doesn’t: When quality control matters and a poorly implemented version of your model could cause harm. When you need revenue from your model to sustain your organisation.

7. Advocacy and policy influence

Instead of scaling your direct service, focus on changing the policies and systems that create the problem you’re addressing. If successful, the impact is far greater than any single organisation could achieve through direct delivery.

When it works: When the problem you’re addressing is fundamentally a policy failure. When you have credibility, evidence, and the capacity to influence decision-makers. When systemic change would benefit more people than incremental service expansion.

When it doesn’t: When the policy environment is hostile to change. When you don’t have the evidence base or relationships to influence effectively. When the people you serve need help now, not when policy eventually changes.

Choosing your model

The right scaling model depends on several factors: the nature of your social enterprise, the problem you’re addressing, your resources, your risk appetite, and the market you’re operating in.

Most social enterprises use a combination of models. You might grow organically while also partnering with other organisations and advocating for policy change. The key is being intentional about which models you’re using and why, rather than defaulting to growth-at-all-costs thinking imported from the commercial startup world.

The goal isn’t to be big. It’s to create the most impact possible with the resources available. Sometimes that means growing. Sometimes that means staying small and doing what you do exceptionally well.