Measuring Social   Enterprise Success <ul><ul><li>SCP Experience to date with Social Return on Investment (SROI) Analysis ...
<ul><li>Thinking About Success </li></ul><ul><li>There are two primary areas where SCP will be evaluating success. These i...
<ul><li>Analyzing Success through Asset Building </li></ul><ul><ul><li>Significant departure from traditional welfare econ...
<ul><li>Measurement Framework </li></ul><ul><li>Need a flexible measurement framework driven by the needs of target employ...
  <ul><li>Three Main Hypotheses to Test </li></ul><ul><li>H1:  The social enterprise model is the most effective strategy ...
<ul><ul><ul><li>What is SROI? </li></ul></ul></ul><ul><li>An attempt to quantify the social value being generated by an or...
<ul><li>SROI in the Context of Social Enterprise </li></ul><ul><ul><li>Robert’s Enterprise Development Fund (REDF) – leade...
<ul><li>Challenges with SROI Approach </li></ul><ul><ul><li>Overarching challenge is to develop a SROI framework and ultim...
<ul><li>Process and Methodology </li></ul><ul><li>First step is to jointly agree on specific strategic issues – for both s...
<ul><li>Learning to Date </li></ul><ul><li>We want to have a good sense of how viable this model is and understand if empl...
<ul><li>Thank you </li></ul><ul><li>Please contact us if you have further inquires at: </li></ul><ul><li>416 646 1871 x110...
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Measuring Social Enterprise Success

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From Social Capital Partners, a presentation to the Carleton Centre for Community Innovation.

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Transcript of "Measuring Social Enterprise Success"

  1. 1. Measuring Social Enterprise Success <ul><ul><li>SCP Experience to date with Social Return on Investment (SROI) Analysis </li></ul></ul><ul><ul><li>Workshop Presentation: Carleton Centre for Community Innovation </li></ul></ul><ul><ul><li>Carleton University, Ottawa </li></ul></ul><ul><ul><li>June 19 2006 </li></ul></ul>
  2. 2. <ul><li>Thinking About Success </li></ul><ul><li>There are two primary areas where SCP will be evaluating success. These include the setting and reaching of clear goals around: </li></ul><ul><ul><li>Providing supportive employment and skill development opportunities to disadvantaged populations </li></ul></ul><ul><ul><li>Social enterprise profitability, ability to scale operations and eventually cover all social and financial costs </li></ul></ul><ul><li>A social enterprise is achieving success if both enterprise target employees and the enterprise itself are able to develop paths towards self-sufficiency </li></ul>
  3. 3. <ul><li>Analyzing Success through Asset Building </li></ul><ul><ul><li>Significant departure from traditional welfare economics </li></ul></ul><ul><ul><li>Increasingly, lack of access to assets ( financial, social, physical and natural) is a key indicator for why certain groups slip into and/or cannot move out of poverty </li></ul></ul><ul><ul><li>SCP is taking an asset-based approach through utilizing the Sustainable Livelihoods framework – a framework that address where people are now, where they want to go and how they want to get there </li></ul></ul>
  4. 4. <ul><li>Measurement Framework </li></ul><ul><li>Need a flexible measurement framework driven by the needs of target employees and social enterprise stage of development </li></ul><ul><ul><li>SCP is not prescribing predetermined notions of success </li></ul></ul><ul><ul><li>SCP does call for clear definitions around who a social enterprise is employing and how this population(s) is being helped </li></ul></ul><ul><ul><li>SCP does require that costs associated with the social mission be accounted for separately to better understand the cost structure of the enterprise and plan for future growth </li></ul></ul><ul><ul><li>SCP is interested in supporting and working with social enterprise organizations that see the value in setting up a success measurement framework </li></ul></ul>
  5. 5.   <ul><li>Three Main Hypotheses to Test </li></ul><ul><li>H1: The social enterprise model is the most effective strategy to enable disadvantaged populations to develop sustainable livelihoods for themselves </li></ul><ul><li>H2: Social enterprises with feasible and scaleable business ideas have the ability to become self-sufficient over a certain period of time </li></ul><ul><li>H3: Access to employment and paid training will contribute to the decreased need of individual target employees to rely on specific social services over time </li></ul><ul><li>SCP deploys a Social Return on Investment (SROI) framework to test the above hypotheses </li></ul>
  6. 6. <ul><ul><ul><li>What is SROI? </li></ul></ul></ul><ul><li>An attempt to quantify the social value being generated by an organization as a result of an investment made in that organization </li></ul><ul><ul><li>An evaluation strategy to determine what organizations and programs are delivering the ‘best’ social returns </li></ul></ul><ul><ul><li>Defined as a ‘return’ because it is a result of resources (financial and human) invested </li></ul></ul><ul><ul><li>Units being measured encompass social and/or environmental impact </li></ul></ul><ul><ul><li>This approach is gaining popularity as competition for charitable dollars continues to increase and social organizations recognize the need to report on the social value of their work </li></ul></ul>
  7. 7. <ul><li>SROI in the Context of Social Enterprise </li></ul><ul><ul><li>Robert’s Enterprise Development Fund (REDF) – leader in developing and disseminating learnings regarding: social, economic and socio-economic value of social enterprise </li></ul></ul><ul><ul><li>SROI evaluation approach lends itself well to social enterprise model in that it encompasses both financial and social outcome areas </li></ul></ul><ul><ul><li>A key contribution of this approach is the focus on distinguishing between the different costs in a social enterprise to enable managers to better understand where specific costs are coming from </li></ul></ul><ul><ul><li>Need for social cost accounting in order to reasonably project costs of social support infrastructure now and in the future </li></ul></ul>
  8. 8. <ul><li>Challenges with SROI Approach </li></ul><ul><ul><li>Overarching challenge is to develop a SROI framework and ultimately a system to function as an integral tool for social enterprise strategic development </li></ul></ul><ul><ul><li>Want to avoid pitfalls of setting up an evaluation process seen only as an accounting exercise with limited value for decision-making within individual social enterprises </li></ul></ul><ul><ul><li>SROI as a concept and evaluation strategy is new and evolving and a lot more testing and refining is needed before touting success of this approach </li></ul></ul><ul><ul><li>Deciding on what social outcomes of target employees to track </li></ul></ul><ul><ul><li>Creating and establishing an assessment and tracking process that has value for target employees (ie Asset Development Planning) - the nature and needs of different target groups should shape tool development </li></ul></ul>
  9. 9. <ul><li>Process and Methodology </li></ul><ul><li>First step is to jointly agree on specific strategic issues – for both social and business missions - to address. </li></ul><ul><li>For the social mission we begin by seeking the answers to the following questions: </li></ul><ul><li>1) Who are - or will be - the target employees? </li></ul><ul><li>2) How is the social mission currently being managed? </li></ul><ul><li>3) How should social mission success be defined? </li></ul><ul><li>4) What social support infrastructure is in place? </li></ul><ul><li>5) How much should be spent on social costs ? </li></ul>
  10. 10. <ul><li>Learning to Date </li></ul><ul><li>We want to have a good sense of how viable this model is and understand if employment in a social enterprise assists people to develop sustainable livelihoods </li></ul><ul><li>Questions Guiding Our Work: </li></ul><ul><ul><li>What are the best ways to achieve positive social outcomes through the social enterprise model? </li></ul></ul><ul><ul><li>How should social support infrastructure be packaged and delivered? </li></ul></ul><ul><ul><li>What are some benchmarks around planning, projecting and managing social costs? </li></ul></ul><ul><ul><li>Is the social enterprise model more appropriate and/or more successful with particular target groups? </li></ul></ul><ul><ul><li>What are the differences between those enterprises that offer short term transition employment versus those offering longer term employment with opportunities for advancement? </li></ul></ul>
  11. 11. <ul><li>Thank you </li></ul><ul><li>Please contact us if you have further inquires at: </li></ul><ul><li>416 646 1871 x110 – Joanne Norris </li></ul><ul><li>For more information, please visit our website: </li></ul><ul><li>www. socialcapitalpartners .ca </li></ul><ul><li>We are utilizing our website to disseminate our investment portfolio SROI Reports and to keep people updated on what we are up to </li></ul>
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