Searching for ‘sustainable’ growth, many governments around the world have begun to lessen the dependency on the traditional nonprofit organization and have turned to SEs(Social Enterprises). SEs has been regarded as new attractive alternative for the job creation and social services provision under the economic depression, and, also became one of main programs in social policies of Korea. Despite the increasing resource inputs, there have been limited efforts to quantify and monetize the social values created by SEs, which raises controversies on result of gov’t policy. The measurement of values by SEs can’t be done appropriately by traditional BCA covering economic analysis. Rather, it requires financial analysis like SROI(Social Return On Investment).
SROI covers the whole values going to all interested parties. Using the method of SROI, values created by one case SEs were measured. It creates not only tangible but intangible values. So CVM(Contingent Valuation Method) was employed to grasp the intangible. Values measured were classified according to two dimension(owners, visibility): entrepreneur value - social value, and tangible value - intangible value. Almost all the previous measurements omitted the intangible values created by SEs, which fails to measure true values creation by SEs. The SROI value (2.81～7.22 for tangible values, 4.22～10.85 for intangible values) proves the SEs in study is very efficiently working. Sensitivity test shows the result is stable.
It turned out that SEs created social values far more than entrepreneur values, and intangible values were almost half of the tangible values. It suggests if the gov’t evaluate the effectiveness or efficiency of SEs on the basis of B/S(Balance Sheet) and P/L(Profit Loss) documents as up to now has done, it never is valid. The final performance result of SEs should be evaluated by SROI context. It’s highly recommended gov’t should change the evaluation criteria for SEs. For the expansion of SROI in SEs policy evaluation, formation of policy community is necessary.