Social Enterprise Impact Assessment In Emerging Markets: What Metrics Are Appropriate?

Given the uncertain funding in tough economic times, and in a consequent attempt to reduce their reliance on external sources, many traditional nonprofits have begun to develop their own revenue streams. These hybrid organizations, called social enterprises, possess characteristics of both nonprofits and for-profits. The revenue and profits generated are used to fund their social mission and what makes them different from other organizations which create social value (such as socially responsible businesses and corporations that practice social responsibility), is that they are driven by their social mission and not by the profit motive. In emerging markets in particular, social enterprises have an important role to play as countries privatize and eliminate or cut back some of the social services the government used to provide. In many countries, the private sector is not well developed or is unwilling to enter industry sectors where the profits are uncertain. These market gaps were partly filled by nonprofits but given the shrinking donor funding, they too are often unable to fully meet the need. In many sectors such as health, education, agriculture, sanitation and others, social enterprises have stepped in.