Позитивные изменения. Том 2, № 3 (2022). Positive changes. Volume 2, Issue 3 (2022)

It is important for social entrepreneurs to be able to independently analyze social outcomes and ways to achieve them.

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In one of your interviews, you said that when providing financial support to social entrepreneurs, the Foundation pays special attention to such an indicator as the degree of social impact. How do you measure it?

Here I would like to mention that the Foundation has many different programs of financial support, and each program includes an individual approach to developing the criteria for evaluating projects. But, of course, social impact is always at the top of the list. If we talk about return on investment in existing projects, we need the evidence base of the declared social effects of the project, for example, laboratory-confirmed environmental friendliness of the products, scientific evidence of the usefulness of the applied methods of preschool development, the presence of reliable positive feedback on the work of the project, etc. We further analyze a number of the largest projects using the SROI (Social Return on Investment) methodology. If we talk about supporting projects at the startup stage, we rely on the predicted values of the effects, comparing them with the available results base from other projects in the same field.

At the same time, Russia still lacks a unified system of indicators and methodology for measuring positive social impact. What do you see as the solution to this issue?

It is important for social entrepreneurs to be able to independently analyze social outcomes and ways to achieve them. “Our Future” Foundation uses complementary methods: assessing results per ruble of invested funds when comparing alternative investment projects in the same area, as well as a method for evaluating the social return on investment and a method for rating social enterprises after they receive funding.

The Social Return on Investment (SROI) method is well-suited for analyzing the entrepreneurial and social components. It takes into account the social results of the enterprise in monetary terms, includes a comparison of invested resources and results obtained. For a SROI of 3:1, every ruble invested in the project results in three rubles’ worth of social impact. Money, in this case, acts as a universal means of expressing value, so that a complete picture of impact can be presented. We do a forecast calculation for large investments, and then after the funding period is over, we summarize the results by comparing them to the forecast data.

The application of SROI makes it possible to visualize and analyze changes. At all stages, SROI serves as a tool for communicating with our customers, employees, communities, and the government. This kind of feedback helps manage risks, improve products and processes, and find new lines of business.

The Foundation uses a rating system for interaction with social enterprises after the funding has been provided. The projects are rated based on the promptness and completeness of the social impact plan, repayment our loans, readiness to cooperate on research and promotion of social entrepreneurship.

The regulation of social entrepreneurship varies from country to country. Some places have laws defining the status of a social enterprise, others don’t. In Russia now, social entrepreneurs also have a special status, but it does not yet include, for example, NGOs. What is your view of the development of the social entrepreneurship model in our country in terms of legislation?