How impact measurement fosters the social economy: From measurement of impact to learning and management for impact

The chapter provides a comprehensive overview of social impact measurement in the social economy in Europe, describing how different social economy actors (social enterprises, co-operatives, impact investors, donors, non-profit associations, and operating foundations) are approaching it; different tools, frameworks, and approaches; as well as bright spots and opportunities in the future. It also contains a series of recommendations for EU policy-makers to guide future action. We argue that social impact measurement is a key enabler of the social economy in Europe, helping social economy actors to improve as well as providing policy-makers, philanthropists, and investors with important data on which to base resource allocation or procurement decisions. We also discuss the challenges and risks the social economy currently faces relating to social impact measurement, in particular advocating a shift away from social economy actors using it to prove impact towards instead adopting a more collaborative, learning mindset in order to improve impact. Both top-down approaches, including developing common standards and metrics which speak to the complexity of impacts involved and the inherent particularities of the social economy, and bottom-up approaches, involving learning cultures within social economy organizations, are necessary and mutually reinforcing parts of the puzzle needed to boost the European social economy’s ability to achieve more over the coming years.