Introduction

In 2013, Ontario’s Social Enterprise Branch set a goal to make Ontario the leading social enterprise jurisdiction in North America. Today, there are estimated to be more than 10,000 social enterprises across the province, employing over 160,000 people serving over 3.4 million customers and making a substantial contribution to the provincial economy.1

Although the potential for their growth is significant, measuring the social impact of social enterprises is a persistent challenge. Not only is it difficult to distill social impact to a set of ‘neatly communicated simple metrics’, but there is also no common, proven method, code of practice, or core model to follow.2 For social enterprises working towards both social and commercial objectives, the ability to clearly articulate and demonstrate social impact3 is critical for building confidence, demonstrating accountability among potential funders and investors and establishing trust with the broader community. More importantly, good impact measurement practice can improve how an organization functions, drive efficiencies, and be a tool to achieve greater impact.

A review of the literature and consultations with leading practitioners and organizations revealed that significant efforts have been undertaken to establish common approaches, develop effective measurement tools, and identify robust metrics for social enterprises. However, the diversity of players in the social enterprise ecosystem has made it difficult to find common ground and develop a coordinated solution.

In June 2016, the Government of Ontario launched a new five-year Social Enterprise Strategy designed to support social enterprises to grow, enter new markets and create jobs while also addressing complex social and environmental challenges. The strategy included the creation of a new Impact Measurement Task Force to explore uniform impact measurement standards for social enterprises.