Simple Measures for Social Enterprise

Abstract

I would not give a fig for the simplicity this side of complexity but I would give my life for the simplicity on the other side of compleity.-attributed to Oliver Wendell Holmes, Jr.Over the last two decades, social entrepreneurs have become darlings of the social sector. From the pioneering work of Ashoka to the global stage presented by the Skoll World Forum and the inspiring work of their Skoll Fellows, a new breed of innovative people and enterprising institutions are literally promising to change the world. Ranging from non-profits with highly scalable models looking to transform national education policy to for-profit businesses looking to serve the "base of the pyramid" at affordable health clinics, this diverse range of social enterprises offers alternatives to traditional charity or development assistance. Even big businesses are taking social enterprise seriously as they explore new ways to tap into underserved markets in emerging economies.But for all the innovation, the question remains: So what? Have these new approaches led to enduring change? Are people drinking cleaner water, living healthier lives, or moving out of poverty because of the new products designed to be affordable and accessible to the poor? We think so, but the evidence is nascent and mostly anecdotal. Our objective at Acumen Fund has been to push hard on these questions of measurement and impact: if what we are doing is a real innovation in philanthropy and development assistance, then we should have evidence that what we are doing matters for the lives of millions of people. This is not a simple problem. This article describes our efforts to get an answer to those questions within Acumen Fund and dives into the complexity of measuring social change. The article reviews our work to develop a manageable and somewhat simple approach to this complex challenge, and then looks at how the field of measurement might evolve in the coming years. My aim is to provide some very practical advice about how to produce or consume claims of social impact (or,

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