Why Impact Investors Should Require a Framework for Measuring Success


credit: USACE on Flickr

If you're in the market for a little extra cash and want to make a positive impact on the world, Entrepreneur has just the thing for you.

The site is running a series of articles on "impact investing," which, as its name suggests, aims to make a positive difference in the world by generating double-bottom-line returns for investors and, in some cases, triple-bottom-line returns for businesses.

A key part of the process, according to Entrepreneur, is "define your metrics and evaluate whether they accurately depict the factors that change people's lives."

Some examples of what to look out for: What's the impact of a business's investment? If so, "each party wants to see a return generated from the money that a business receives but to deliver and show true impact; additional benchmarks must also be met."

What's the impact of a business's investment? If so, "are those earnings being spent or reinvested back in the community, perhaps through purchasing new homes?" What are the wages of workers? If so, "are wages helping employees get off of public assistance or meeting or exceeding average pay in a region? Do workers also receive additional benefits that deepen family economic stability that leads to personal and generational wealth

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