(SROI) methodology workshop

Social Entrepreneurship Program
Terms of Reference
Consultant
Developing a Social Return on Investment (SROI) methodology
Location :
Cairo
Application Deadline :
19/12/2014
Type of Contract :
Service Contract
Languages Required :
English
Duration of Contract :
Two Months
Background Information:
Egypt is a country with millions of aspiring and active entrepreneurs. Entrepreneurial
activity is taking place in all socio-economic strata of Egyptian society.
People of all ages, educational backgrounds, household income levels, and urban-rural
environments are actively engaged in some phase of entrepreneurial activity. However,
there are many variances in entrepreneurial activity rates in different segments of
society. In this regard,
In full recognition of the critical role of entrepreneurs in job creation, innovation, growth,
and national prosperity, the Government of Egypt is committed to creating an enabling
environment for entrepreneurship to flourish in the country.
The Government of Egypt have made much progress in recent years to improve the
investment environment and to reduce the cost and complexity of registering new
businesses. Our laudable performance on the World Bank Doing Business reports is
indicative of the outcome of the government’s reform efforts. However, Egypt is still a
developing economy and we know that much more needs to done to improve our
competitiveness in the global marketplace.
The Egyptian economy is expanding and we need to ensure that Egyptians have every
opportunity to develop new business ideas, enter new markets, and produce new and
innovative products and services to meet the needs of businesses and consumers in
both local and foreign markets.
Egypt cannot afford to build its future growth on foreign direct investment alone. We
need to broaden our base of domestic investors and entrepreneurs to develop a more
diversified and dynamic economy. Investing in this and the next generation of
entrepreneurs, particularly social entrepreneurs.
The Social Entrepreneurship Programme at Industrial Modernisation Centre objective is
to Catalyzing the creation and nurture of micro-, small- and medium-sized businesses
that aim for positive social or environmental outcomes while generating financial returns;
through developing framework for action for social enterprises and social
entrepreneurship. Social enterprises can help create jobs, devise innovative
development solutions, and inspire young people to act as citizens who are both
economically productive and socially engaged—all with the ultimate aim of promoting
human dignity and greater social equity.
Description of the Assignment:
Social entrepreneurs are ‘searchers’ with a clear vision, a passion and a determination
to create impact through social business. They combine risk taking with an innovative
market-based business approach but one that is aimed at creating social change rather
than serving the financial interests of shareholders only. Social entrepreneurs speak
business but think social at the same time.
Similarly social investors are driven by a strong vision to invest in businesses that create
this so-called ‘blended value’: they produce not only economic value-addition and
financial profits, but equally so social change and environmental benefit. Social investors
accept that their capital may yield lower and slower financial returns on investment but
they do accept and value other returns as well, notably in terms of social change. In
other words, capital investment in a social business is (at least partly) provided by a
social investor, who is satisfied with a lower dividend and a longer repayment period, but
who instead receives a verifiable social and/or environmental return.
Social Return on Investment (SROI) is an impact assessment approach that
incorporates social, environmental, financial and economic values in management of
and decision making on (social) business investments. The method assigns monetary
values to results, also to the non-tangible non-financial results. By monetising these
factors, blended values that are created through an investment can be captured and
expressed in a numeric equivalent (known as an SROI ratio) to the ‘common’ financial
return on investment.
Objective of the Assignment:
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This workshop will be designed for Social Enterprises , Investors, organisations
interested in measuring, analysing and learning from the social, environmental
and economic effects brought about by the activities implemented, facilitated or
(financially) realised by them and their project partners.
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It is targeted at parties who are already implementing SROI as well as those who
have recently become interested in this methodology. This workshop must focus
particularly on SROI applied in the development cooperation sector.
This workshop also should focus on identify the benefits of SROI analyses such
as :
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 Improved Communication Providing credible numbers as well as
qualitative and narrative value information – and a systematic story to
support all of these – enables organisation to ‘talk’ to stakeholders with
different preferences.
 Better Focus on what’s Important By focusing on the critical impacts,
an SROI analysis can be completed relatively quickly. It is an effective
way of defining the management information systems necessary to make
it quick in the future.
 Clarity in Governance If accountable organizations are more
sustainable, then understanding and explaining these impacts, and then
responding to them, is critical. SROI analysis can help clarify impacts and
focus the response. Responding to stakeholders enables them to
influence the organization. As a result, the organization’s governance will
be more closely related to the stakeholders’ requirements.
 Growing or Changed Investment Mentality The concept of social return
helps one to understand that any grant or loan can be thought of as an
investment, rather than as a subsidy. The focus shifts to the creation of
value, and away from the risk mentality and opportunity cost of using
money here rather than there.
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The workshop must provide step-by-step support to apply SROI to their planning,
monitoring and evaluation practices and to embed SROI within their
organisations.
Requested Services:
The following is the detailed activities to be delivered & reported during the
Workshop but not limited to the following:
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Uses of SROI (valuation and monitoring)
SROI analysis : SROI analysis consists of several steps, which are reflected in
the SROI tool:
1. Project/Business Description
2. Describing a Theory of Change
3. Recognizing Stakeholders
4. Determining Input
5. Determining Activities
6. Determining Output
7. Determining Outcome, Impact & Attribution ( must shows the
Calculation of the SROI ratio)
8. Determining Indicators
9. Using Monetization
10. Making Projections
Integrating SROI in the organisation
 Ensuring necessary capacities and conditions
 Capacity for people and their organisation
 Incentives
 Operational structure and SROI responsibilities
 Information system
 Finances and resources
Links with other Methodologies
 Determining the fit within PM&E practices
Study cases
Preparing the SROI exercise & SROI report
Assignment Duration:
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The workshop duration from 2-3 Days according to the workshop activities.
Assignment Location:
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Assignment will be located in Cairo
Accommodation, transportation and any other support facilities required for the
assignment are the responsibility of the Contractor.
Assignment Requirements:
Proposal should include the following requirements:
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Workshop syllabus
Workshop action plan and activities
Budget
Consultant profile & experience :
 Experience in international development.
 Demonstrated background in economics and project management.
 Advanced level expertise in application of socio-economic cost benefit.
 analysis methodologies (experience in applying Social Return on
 Investment methodology is highly desirable).
 Ability to analyse large amounts of information and undertake critical and
relevant written analysis.
 Working Days:
 The consultant is expected to work 5 working days
Interested parties should send their Technical and financial offer to the below email:
nmahgoub@ecrc.org.eg