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Social enterprise is a growing force in the Australian economy, with great potential for local job-creation and stimulating new entrepreneurship across the service, manufacturing and retail industries. However, the sector also has a ‘dark side’ – whereby its social welfare agendas are sidelined in favour of profit-driven motives, the outsourcing of government services and perpetuation of inequalities between those that manage and those that benefit from the enterprises. In this light, it is perhaps not surprising that social enterprise literature has emerged predominantly from the field of business management, resulting in an over-representation of perspectives that privilege the economic, and technocratic, aspects of social entrepreneurship. This is particularly problematic in the context of the arts, which often challenge, transform and exceed conventional understandings of social value. This paper explores the potential role of art- and fashion-based social enterprises in contributing to sustainable community development while also activating positions of critique and political engagement from inside the mechanisms of contemporary capitalism. [ABSTRACT FROM PUBLISHER]