Most of the companies we work with are so called social enterprises. They want to improve the lives of people or protect the environment. There are several ways to do this through a business. For example, by creating employment for dropout youth, by developing affordable food products for undernourished children or by creating products from recycled plastic. The list is endless. But do you measure how big the impact is that you make?
By measuring the impact of your business on people and environment, you can collect proof that your approach actually works. Knowing what works and what doesn’t work helps you to improve the way you do your business. And of course, you can use the collected information to communicate to clients, communities and funders. Many funders are investing their money because they want to do something good, so a clear story about your impact will increase you chances!
The best thing is to formulate three of four indicators. A small number makes it possible to measure them all in a good way. The indicators should be related to your vision and mission, because they will serve as a way to know whether you are actually achieving your vision and mission. The indicators should be SMART: Specific, Measurable, Achievable, Realistic and Time-Bound. Not: We will help drop out girls, but: In three years’ time we will train 100 dropout girls and at least 70% of them will find a job. Also, plan how and how often you will measure the indicators!
What we see a lot is that social entrepreneurs are too much focused on the social impact and don’t spend enough effort on making the business commercially viable. But if the business doesn’t sell, create turnover and make profit, it will cease to exist and can no longer make an impact! The social and commercial part are equally important! Next to the social indicators, also formulate three to four indicators on your commercial progress.
There isa lso a presentation on impact measurement. Let us know if you want to receive it!
