Research And Application Of Value Measurement Model Of Social Enterprise

Since the beginning of the20th century, the human society develops continually. Along with economic globalization, more and more social issues began to appear. Across these social issues, free market and government organizations are powerless, non-profit organizations can not solve all problems either. In this case, people must seek a new form of organization and social enterprises came into being.Since1990s, With non-governmental organizations and non-profit organization of the third sector enterprises, Social enterprises is gradually beyond the realm of folk, develop rapidly and gradually flourish in society. Social enterprise is neither general social service, nor pure business enterprise, but a blend of the organization with dual objective of creating economic value and social values. Social Enterprises are committed to solving social problems, and utilize the general mode of commercial operation to ensure their sustainable developments.The values of social enterprises to create also have their unique characteristics. This article analyzes the SROI model and finds that the SROI model has some limitations. Such as, SROI doesn’t measure the environment value, SROI model determines the capital cost of social enterprises subjectively; the total capital investment is not divided into social purposes of investment and economic purposes’. In this paper, SROI model limitations in these four areas have been improved, and the influence of the social enterprise project s on the community economy because of the project’s capital flowing is included in the scope of measurement. This article introduces the LM3model, and combines the LM3model and the SROI to measure the values of social enterprise. Finally, the improved SROI model is applied to a case to realize the combination of theory and practice.