The criteria for a solid impact evaluation in social entrepreneurship

Abstract

Purpose

The aim of this paper is to determine the criteria for a solid impact evaluation in social entrepreneurship. The solid impact evaluation method is needed for building the bridge between two separate discourses of social entrepreneurship: the discourses of protectionists of social entrepreneurship, who believe without empirical proof that social enterprises are effective and the opponents or doubters in social entrepreneurship, who need empirical proof of the effectiveness of social enterprises.

Design/methodology/approach

The criteria for a solid impact evaluation discourse of social entrepreneurship are determined and its impact evaluation is analysed based on literature.

Findings

A solid social impact evaluation method should be able to analyse: the social impact of the organisation and not only the financial allocation and outcome; differences in the impact of two organisations which are operating in the same field; and the selection of target group and analysis of all the impacts of the activities.

Research limitations/implications

The list of criteria for a solid impact evaluation might not be complete as it is based on literature review only. As there is a considerable gap between the discourse of protectionists and opponents of social entrepreneurship, additional analyses are required to analyse the discourse of practitioners of social entrepreneurship.

Practical implications

The current study could be used for practitioners as well as for politicians while preparation for the negotiations with the representatives with other sectors as it brings out some of the common topics that are misunderstood by different parties.

Originality/value

This paper takes the first step toward a construction of a solid impact evaluation model. Evaluating the social impact of social enterprises with a solid model could bring closer the discourses of social enterprises used by protectionists and opponents of social entrepreneurship.

Citation

Pärenson, T. (2011), "The criteria for a solid impact evaluation in social entrepreneurship", Society and Business Review, Vol. 6 No. 1, pp. 39-48. https://doi.org/10.1108/17465681111105823