Measuring Impact Performance in Social Enterprises : The iooi Method as an Impact Measurement Tool for Small to Medium Social Enterprises: The Case of Impact Hub Berlin

In recent years, there has been a growing consensus that social entrepreneurs should measure their social impact for external legitimization and internal learning. Especially with the rise of new venture philanthropists pressing for a measured statement of return for their social investment, a range of models have been proposed, which vary in their approach and complexity. While some models rely on quantifiable measurements or calculations, others take a qualitative approach to measuring impact. Many small to medium social enterprises struggle with a lack of time, money and expertise to measure their impact using complex methodologies however. Since there is only limited research on the feasibility of the impact measurement methods proposed, this paper aims to discuss the input-output-outcome-impact (iooi) method developed by the Bertelsmann Foundation, a logical approach to measuring social impact recommended in reporting guidelines such as the Social Reporting Standard (SRS) or Phineo’s Social Impact Navigator, regarding its applicability and effectiveness as an impact measurement tool for small to medium social enterprises. By practically applying the model in a case study, this paper gives a recommendation on whether the iooi model can be considered a resource-sensitive impact measurement tool for social enterprises on the example of Impact Hub Berlin, an early-stage social enterprise. The findings indicate that the iooi method as a logical approach to measuring impact does provide a feasible framework to depict social impact in small to medium social enterprises, but is not adequate when it comes to comparing impact performance across organizations or industries. It cannot be concluded whether the iooi method is effective regarding the completeness of the measurement results, but the findings support the common claim that impact measurement contributes to organizational learning