Goodstart Early Learning

Goodstart Early Learning is Australia's largest early learning provider.^[1] A not-for-profit social enterprise, it employs 13,500 staff and supports more than 60,000 families and 71,500 children across 643 centres throughout Australia. Formed by the Brotherhood of St Laurence, Mission Australia, The Benevolent Society and Social Ventures Australia, out of ABC Learning, Goodstart began operating in 2010.

The group also advocates to Government and the community to ensure children and families have continued access to affordable, high quality early learning and care.^[2][3]

History

The Goodstart story was the brainchild of two of Australia’s leading social entrepreneurs, Evan Thornley and Michael Traill.^[4]

Inspired by international research showing that 80 per cent of a child’s brain development occurs before a child starts school, Evan and Michael, along with three leading non-profit CEOs Toby Hall, Richard Spencer, and Tony Nicholson, recognised that raising the quality of Australia’s child care sector was a potential game changer to improve the future lives and education of Australia’s children.

This shared vision, combined with the collapse of the ABC Learning empire, led to a once-in-a-generation opportunity to build a new child–focussed social enterprise.^[5]

As well as understanding the importance of early learning on a child’s development and the impact on that child’s future educational achievement, they also recognised the tremendous opportunity to increase women’s workforce participation, improve local connectedness and enhance the opportunity for Aboriginal & Torres Strait Islander people.^[6]

Through this one enterprise they saw the enormous potential to increase access to quality early learning in the child care sector. However, the challenge of making this vision a reality was significant and complex.

They needed organisations committed to the goal, willing to work together, who could define and agree on the social impact and create a legal and commercial structure that was capable of achieving it.

The solution was to form a consortium of four leading not–for–profit organisations— The Benevolent Society, the Brotherhood of St Laurence, Mission Australia, and Social Ventures Australia. The consortium committed their own funds to help win the bid for the collapsed ABC Learning business, against the backdrop of intense time pressure.

There was still a significant shortfall and a critical need for a respected, business–savvy Chair, so they turned to Macquarie Group Director, Robin Crawford. Robin tapped into his extensive network, convincing them to invest. He was instrumental in winning financial support from social note holders and the National Australia Bank, and as founding Chair provided the credibility and independent leadership needed. Each of the non–profit leaders also reached out to their own networks for support.

Michael and Robin believed the best way to attract investment was through layered funding, which could accommodate the different risk appetites of investors. The National Australia Bank agreed to provide senior debt to the consortium; next came a layer of finance from the Australian Government in the form of a loan where the principal could be repaid at a much later stage.

A final layer of finance came from 41 social investors—a mix of individuals and foundations. To attract these investors the consortium created a new financial instrument called a ‘social capital note’, where investors received a 12 per cent rate of return.

Through these multiple investors, the consortium managed to secure $95 million in cash to purchase the 678 child care centres, as well as $70 million to fund the ongoing operations of the new social enterprise. This unique combination of private, public, and community sector involvement has influenced the shape of Goodstart in its foundation years and into the future, while creating an extraordinary chapter in Australian corporate history.

References

^{[7] [8] [9] [10] [11] [12] [13] [14] [15] [16] [17] [18] [19]}

External links

• Official website