To prove and improve: An empirical study on why social entrepreneurs measure their social impact
van Rijn,Michiel Raab,Jörg Roosma,Femke Achterberg,Peter
van Rijn,Michiel
Raab,Jörg
Roosma,Femke
Achterberg,Peter
Abstract
This large-scale statistical study tests the validity of two factors that explain why social entrepreneurs measure their social impact as addressed by qualitative case based research. For this purpose, data from the Global Entrepreneurship Monitor 2015-survey is used to test the significance of the 'measuring to prove' and 'measuring to improve' dichotomy. Based on the results of a fixed-effects logistic regression analysis, this paper finds validation for both factors. Hence, the empirical setup allows for generalising the findings to a broader scope. Regarding 'measuring to prove', this paper finds that social entrepreneurs who receive funding from the government are more likely to measure their social impact compared to receiving funds from other sources. Regarding 'measuring to improve', this paper finds that social impact measurement is more likely among social entrepreneurs who innovate and prioritise their social mission. In addition, the 'measuring to improve' factor seems to be a stronger predictor for measuring social impact than the 'measuring to prove' factor. This paper may guide the actions of funders , policy makers and scholars who are engaged in the field of social entrepreneurship, generally, and social impact measurement, specifically.
Description
Funding Information: The process of monitoring the accomplishment of the organisational goals is important for social entrepreneurs as a way to prove their value to a variety of stakeholders, including their beneficiaries and financial funders (Nicholls ; Smith and Stevens ; Austin, Stevenson, and Wei‐Skillern ; Barraket and Yousefpour ; Campbell and Lambright ). The interests of their stakeholders may influence the achievement of their social mission (Ebrahim, Battilana, and Mair ; Ramus and Vaccaro ). While impact measurement may be motivated to celebrate the reached achievements together with the beneficiaries they serve (Barraket and Yousefpour ), it may also be used to satisfy current or attract potential new funders (Ormiston ; Ormiston et al. ; Ormiston and Seymour ). These investments may come from a variety of informal and formal sources and may include donations, grants, volunteers, earned income, and tax breaks (Nicholls ). Satisfying current funders however fits within the paradigm of ‘measuring to prove’ (Lall ; Liket and Maas ; Rawhouser, Cummings, and Newbert ). For example, there is a need for delivering prove of the effectiveness in achieving the social mission for social entrepreneurs who are being funded by a grant or who work under a government contract (Campbell and Lambright ; Lall ). However, the need to measure social impact may depend on the type and primary interest of the financial funder: ‘finance’ or ‘impact’ first (Glänzel and Scheuerle ). In addition, the social tie between funder and social entrepreneur may influence if and how the social impact is being measured (Smith and Stevens ).
Date
2023
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Research Projects
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Keywords
Social entrepreneurship, social impact measurement, GEM, measuring to prove, measuring to improve
Citation
van Rijn, M, Raab, J, Roosma, F & Achterberg, P 2023, 'To prove and improve : An empirical study on why social entrepreneurs measure their social impact', Journal of Social Entrepreneurship. https://doi.org/10.1080/19420676.2021.1975797