More than $1 million of Government funding has been set aside to build start-up social enterprises.

Community and Voluntary Sector Minister Jo Goodhew today announced $1.27 million would go to supporting organisations that furthered human and environmental well-being, but using commercial models to generate income.

"This government recognises that by combining social goals and business methods, social enterprise has the potential to play a significant role in New Zealand's social innovation and economic development," Goodhew said.

The money will be administered through the Hikurangi Foundation - a charity dedicated to incubating social enterprises.

"Over the next two years the Hikurangi Foundation will receive $1.12 million to help build a national social enterprise incubation and development service to provide expert support, resources, and one-on-one advice from bases in Auckland, Wellington and Christchurch," she said

An extra grant would also be given to Hikurangi to fund a pilot programme supporting 10 new social enterprise initiatives.

Private energy company Contact Energy would also be giving funds to the project.

(Source Fairfax NZ News)