Measuring Value Creation in Social Enterprises

Abstract

The relationship between business and community is becoming increasingly important, especially with the current blurring of the boundaries between profit and not-for-profit sectors, and the growing number of hybrid organizations such as social enterprises. For these organizations, the assessment of social impact plays a strategic role in helping them understand to what extent their social mission has been accomplished. As a result of increasing interest in the practice of Social Impact Assessment (SIA), many models have been developed, but a system to classify them is still lacking, and so the overall picture remains rather fragmentary if not confusing. In this research, a hierarchical cluster analysis was developed based on a sample of 76 SIA models to group them in macro-categories and help social entrepreneurs choose the model that is best suited to the needs of their organization.