Beyond the bottom line: assessing the social return on investment of a disability-inclusive social enterprise
ISSN: 1750-8614
Article publication date: 14 August 2024
Issue publication date: 15 November 2024
Abstract
Purpose
Though qualitative evidence of social impact exists for disability-inclusive social enterprise, there is a dearth of quantitative economic impact on their social impact. This study aims to address this gap and investigate the appropriateness and usefulness of social return on investment (SROI) methodology in this context.
Design/methodology/approach
Primary data was collected from people with disabilities, their families, staff at the parent company (an Australian Disability Enterprise [ADE]), social investors and other key stakeholders (n = 17). The study was also informed by the literature and a steering group to provide expert opinion when no other data existed to inform estimates. Sensitivity analysis was performed to check the robustness of the analysis.
Findings
Social return was estimated at $1.47–$2.65 for every $1 invested (over 3 years) and $8.48–$12.63 (20 years). Some forecast assumptions significantly impacted upon final ratios and need to be tested. How SROI ratios are received by social investors, the ADE sector and government remains untested. However, the political climate suggests ADEs adopting social enterprise models will be well received if they can deliver, and demonstrate through robust measurement, sustainable open employment opportunities.
Originality/value
Few studies exist that estimate the social impact of social enterprises supporting open employment of people with disabilities. At a time when ADEs (sheltered workshops) have been heavily criticised for providing repetitive, menial work for top up wages on welfare payments, the outputs from this research may provide valuable data to an ADE sector in transition as well as social investors and policy makers who increasingly require robust measurement of impact.
Keywords
Acknowledgements
The authors thank the people with disabilities, their family members, staff of the parent organisation and the new social enterprise, social investors and other disability employment sector stakeholders for giving up their time to participate in this research.
Funding: This research was commissioned and funded by the parent Australia Disability Enterprise who were co-funding the social enterprise with social impact investors to support the open employment of people with disabilities. Representatives of the ADE and new social enterprise were key stakeholders in the development of the forecast social return on investment. SROI is a process that is stakeholder engaged but researcher driven.
Ethics statement: Ethics approval for this research was provided by the Flinders University Human Research Ethics Committee (reference: 5519).
Declaration of conflict: The authors have no conflict of interest to declare.
Citation
Hutchinson, C., Lester, L., Coram, V., Flatau, P. and Goodwin-Smith, I. (2024), "Beyond the bottom line: assessing the social return on investment of a disability-inclusive social enterprise", Social Enterprise Journal, Vol. 20 No. 5, pp. 951-968. https://doi.org/10.1108/SEJ-08-2023-0101
Publisher
:Emerald Publishing Limited
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