Beyond the bottom line: assessing the social return on investment of a disability-inclusive social enterprise

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.