University of NSW Centre for Social Impact social enterprise director Cheryl Kernot cited the initiative as she told The Illawarra Connection about the benefits of supporting and initiating social enterprise.

Ms Kernot, a former Democrats leader, said that during the past decade there had been a global movement of business people seeking an alternative way of sharing resources and opportunities.

The term "social entrepreneur" was born and businesses have emerged with the mission of making profit for a social purpose.

"There are all kinds of really creative community business partnerships emerging," she said.

"And you will find a number of charities ... finding ways to generate their own income so they can invest that into the core social purpose of the business."

Ms Kernot said the pilot project Mission Australia had developed at Fairy Meadow to solve the problem of waste mattresses really caught her eye.

Big Heart Enterprise manager Andrew Douglas took her on a tour of the recycling operation.

It already employs three people and has the potential to employ many more.

"It costs $22 to dump a mattress and 1.5 million of them are dumped a year in Australia," he said.

Mr Douglas said mattresses that used to be left at Mission Australia recycling bins were now being pulled apart and markets had been found for all components.

The springs go to scrap metal recyclers, the foam is used as carpet underlay and pulp fibre is used by a sporting goods manufacturer for punching bags.

He said the endeavour was also cutting transport costs and reducing landfill.

The pilot has proved cost effective and Mission Australia is now looking at funding options so it can provide more job opportunities for unemployed people.

Ms Kernot said it didn't take long to identify opportunities where charities and business could link up.