Performance Measurements for Social Enterprises : With focus on Small and Medium sized Social Enterprises

Sammanfattning: As the field of Social Enterprises has strongly grown over two decades, the importance of Social Enterprises for the society has also grown and still developing, more and more to a third economic segment between the private and public economy. Within this study we explain how “Small and Medium sized Social Enterprises” (SMSEs) can face the increasing pressure to measure and demonstrate their impact to society and their stakeholders. We especially address the limitations in skill and resource endowment, which SMSEs most commonly face. We execute this research based on a practical and outcome-oriented method and therefore apply an overall pragmatic research philosophy. The research is further designed around a narrative strategy, with an exploratory mono method cross-sectional study. For the collection of empirical data, six semi-structured interviews were conducted with (Social) Entrepreneurs and their stakeholders. This study finds a language barrier between SMSEs and their commercial stakeholders, caused by low willingness from the Social Entrepreneurs’ side to adapt to a commercial business language. The findings of this study further imply that SMSEs are capable of using surveys to measure their performance quantitatively, in terms of in- and output. More importantly, our results suggest that these measurements, completed with additional “soft” measurements to “qualified narratives”, are sufficient to prove the SMSEs’ performance to their stakeholders. Finally, this study takes up an existing contingency model and enriches it with the revealed discoveries, to a more comprehensive measurement approach for SMSEs. It thereby contributes to the field of Social Enterprises and lays valuable foundations for further research.