Impact-first
Social entrepreneurs are looking for innovative solutions to social challenges.
The social mission is our top priority (impact first). As a social enterprise, we supply products and services just like “ordinary companies”. Making money is not a main goal, it is mainly a mean to make our world a little better.
‘’Social return on investment is creating employment for people who are at a distance from the labor market."
What is Social Return?
Social return on investment is an approach for the Dutch government, municipalities and companies to achieve social objectives in investments. In this way an investment by a municipality or the national government can contribute to social profit (return).
The social objective is to create more employment for people with a great (er) distance from the labor market. By applying Social return, the government ensures that an investment made within the state yields a concrete social profit.
A social objective could be, for example: reducing the number of benefits for people who can work. Because the investment is made in companies that create social employment, this yields social profit because people keep employment in this way.
Companies can set SROI requirements for themselves, for example if they consider corporate social responsibility important. Companies can also be imposed an SROI obligation, for example when winning a tender. This means that a certain percentage of the wage bill (at least 5%) must be invested in providing workplaces for people at a distance from the labor market.
What is a tender?
“Tendering” means that a supplier requests quotes for a specific service, supply or work. Dutch government institutions and public law institutions are obliged to market assignments through the tendering procedure (Procurement Act). As a result, smaller companies can also compete for a public contract. Annually, 60 billion worth of products and services are purchased by the Dutch government in this way. Since 2011, the government has included SROI (Social Return On Investment) as a condition in a tender. This obligation must be completed by the client or subcontractor (both are responsible).
Is SROI always a cost item?
SROI obligations do not have to be seen as costs because of the simple fact that employees can easily be placed on the basis of CV in the common positions within most of the projects involved. The greatest burden lies in searching for and selecting the right candidates. If this is completed correctly, the SROI obligation is an investment that yields social and financial benefits for all parties involved (employee, employer and government).
How do you use social return?
There are two ways to make use of social return:
- Hire people at a distance from the labor market.
- Purchase products or services from social enterprises that stimulate labor participation.
What are the benefits of social return for your company?
- You contribute to a sustainable and socially responsible world.
- You contribute to a positive impact on people and the environment.
- Your commercial operations and your social heart go hand in hand.
We want to inspire other entrepreneurs to also start a social entrepreneurship.
