The report found that it was not possible to devise a rigid set of indicators in a top-down way to measure social impact in all cases.
In fact, the necessity for a standard for the measurement of social impact is important in terms of funding: the EaSI programme stipulates that social enterprises must demonstrate that they are focused on achieving measurable, positive social or societal impacts in order to benefit from support.
The new EuSEFs (European Social Entrepreneurship Funds) also require social businesses seeking financing to measure their social impact. The development of a standard should help to avoid the current duplication of costs due to the fact that there are different approaches, as well as encouraging best practice in the rapidly evolving field of social impact measurement.
The standard will help European social enterprises benefit from funding via the European Social Entrepreneurship Funds (EuSEF) and the new Employment and Social Innovation programme (EaSI).
EU Commissioner for Employment, Social Affairs and Inclusion, Lszl Andor, said: “We support the role of social entrepreneurs and their social investments. The new standard will help social enterprises access EU financial support, and sets the groundwork for social impact measurement in Europe.
“It also contributes to the work of the Taskforce on Social Impact Investment set up by the G7 to develop a set of general guidelines for impact measurement to be used by social impact investors globally.”