Paper
Social Return on Investment for Microenterprise Development
Presentation at the AEO conference, Portland, May 2005
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32 pages
This presentation discusses the social return on investment (SROI), and proposes a model to measure SROI.SROI is a valuation of financial and non-financial returns to an investment that provides stakeholders with an understanding of the double bottom line of a social enterprise or development program. An SROI for a microenterprise is a valuation method that estimates and projects the social return a microenterprise creates for every dollar invested in it. It evaluates benefits to microenterprise owners and employees, local and state governments and the local economy.
Other possible SROI components include economic multipliers, financial returns to microprograms, and non-monetized social benefits. A credible SROI model includes:
- Indicators that are meaningful to the audience;
- Transparent assumptions;
- Valid and reliable evidence supporting assumptions;
- Indicators and methodology comparable to that used in assessments of other business development strategies;
- Calculations that are accessible and practical for a broad audience.
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