Recycling and Social Entrepreneurship. Recycling & Social Entrepreneurship 10/5/14. David Kis n Social Enterprise Associates

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1 Recycling & Social Entrepreneurship David Kis n Social Enterprise Associates NM Recycling and Solid Waste Conference September 23, 2014 Recycling and Social Entrepreneurship 1. Social Entrepreneurship 2. SE and Recycling: Mini- Cases 3. Measuring Impact 4. Resources 1

2 Consul ng firm - Registered B Corp Network of experts offering consul ng & capital raising to triple bo om line efforts- people, profits, planet. Registered B Corpora on, recognized: 2014 One of the Best for the World small businesses 2012 Honoree NM Sustainable Business of the Year 2011 'One of the Best for the World' small businesses Social Entrepreneurship Innova on Entrepreneurial Orienta on Achievement Orienta on SE Orienta on Independence Community Awareness & Social Concern 2

3 Blended Value Proposi on Financial Return For- Profit Social Enterprise Non- Profit Social/Environmental Return Con nuum of Return Expecta ons Morino Institute, Blended Value Proposition 3

4 Case Studies 4

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6 Measuring Your Impact 6

7 Why Measure Social Impact? 1. Improved program management: more effec ve planning; more effec ve evalua on 2. Increased understanding of impact of work 3. Stronger communica on of value to people that ma er (internal, external stakeholders) 4. Enhanced a en on to social, economic, cultural & environmental value created Steps for Sound Measuring Define Count Quan fy Mone ze Theory of Change, Impact Value Chain Your Mission What are you doing? How many? Social Value with Leading Indicators Social Value in Monetary Terms (SROI) 1. Use impact map: iden fy key areas measure, indicators reflect change 2. Structure inves ga on, ask good ques ons. No garbage in, garbage out. Choose best research method to suit info, budget, metable, skills 3. Store informa on in systema c fashion 4. Look at data (analyze, digest what collected) 5. Get it out there 7

8 Impact Value Chain SOCIAL VENTURE TECHNOLOGY GROUP. All rights reserved. Measuring social returns harder than measuring financial returns EASY Tangibility Spectrum HARD TYPE I TYPE II TYPE III TYPE IV Sales revenue Capital assets Investment returns Dividends Etc. Goodwill Insurance Deprecia on Liability Projected revenues Emission credits Income changes Educa on access Earnings poten al Technology benefits Etc SOCIAL VENTURE TECHNOLOGY GROUP. All rights reserved. Health Life Safety Freedom Biodiversity Dignity Clean air Happiness Safe water Etc. Educa on results Poli cal stability Cultural Advancement Etc. 8

9 Informa on About Value 5 ways to ar culate value crea on Financial informa on Mone zable accoun ng: cash in, cash/ work out transla ng non- financial value into $ equivalent Audience 1 Audience 2 Quan ta ve Qualita ve numbers: size, magnitude or degree descrip on: kind, type, or direc on Narra ve storytelling SOCIAL VENTURE TECHNOLOGY GROUP. All rights reserved. Con nuum of Financial / Social Expecta ons High Social Value Crea on Expecta ons Philanthropy dona on No expecta on of return PRI from founda on ~0-2% year interest SRI debt Fewer obliga ons ~3-5% interest Bank debt ~6-8% year interest Venture capitalist Ownership stake 20% a year Low Risk / Return Expecta ons High 9

10 Social Return on Investment (SROI) Non- financial value created rela ve to investment measuring impact Goals Assess actual value created Inform management decisions Align investment with value Answer ques ons like Where is best place to spend the next dollar? What resources do we leverage from partners? What are social benefits of this work in greater terms? Resources 10

11 Resources U.S. Small Business Administra on Social Enterprise Alliance Social Impact Exchange Founda on Center SE Toolbelt Social Venture Network David Kis n Social Enterprise Associates david@socialenterprise.net 11