Evaluating Impact Investments: Frameworks and Applications for Social Ventures

Alessandro Rizzello (), Elisabetta Scognamiglio (), Ludovica Testa () and Lorenzo Liotta ()
Additional contact information
Alessandro Rizzello: University Magna Græcia of Catanzaro

A chapter in Innovations in Social Finance, 2021, pp 437-461 from Springer

Abstract: Abstract Social Impact Investing (SII) aims for positive social and environmental impact alongside financial returns. However, within SII research, there is an opacity around the extent to which non-economic externalities are incorporated, managed, and assessed in the SII field, especially in ex-ante evaluations adopting Social Impact Assessments (SIAs) and measurement systems. Approaches to SIA can be qualitative, quantitative, or both (mixed methods), while its application within the field of SII remains loose—financial actors interpret it differently. This gives rise to a multitude of approaches that measure impact across the sector. By addressing this gap in the research, this paper investigates impact measurements as well as methods of ex-ante that are useful to impact investment and presents an experimental approach adopted for an Italian social venture. Starting with the review of different approaches categorized in the SII literature, this study answers the following research questions: (a) How is an ex-ante qualitative impact assessment built in the case of impact investment in social ventures? (b) Is it possible to identify a “one-size-fits-all” model applied within SII in impact-oriented start-ups? (c) How is this qualitative step integrated with quantitative metrics that inform investment decisions? To answer these questions, we undertake an exploratory analysis by presenting a case study application in a social venture. Our results are useful in understanding how theoretical perspectives, with respect to the creation of social value in the financial system, converge in the definition of impact evaluation schemes in the field of SII.

Keywords: Impact investing; Social impact assessment; Impact evaluation; Theory of change (search for similar items in EconPapers)
Date: 2021
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-72535-8_20

Ordering information: This item can be ordered from
http://www.springer.com/9783030725358

DOI: 10.1007/978-3-030-72535-8_20

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().