The commitment to generating a blended value is increasingly spreading in the business sector. At the forefront of this movement, impact ventures are organizations born to produce value for the society, i.e. social impact, while engaging in commercial activities to sustain their operations. On the other end, we have observed an increased emphasis on more responsible, sustainable practices that traditional for-profit businesses have been called to establish. Accounting for and reporting on social impact has become increasingly of interest to a range of institutions and sectors, with the result that many competing methodologies, approaches, guidelines and standards have been introduced. The chapter performs a comprehensive review of existing approaches for impact measurement and management implemented by socially-oriented ventures (both not for profit organizations and for-profit businesses) focusing on both methodological, governance and operational barriers and enabling factors of the practices. Then, it drafts a framework which helps any ventures to structure a process and methodology to measure its blended performance. The research not only contributes to the scant literature on impact entrepreneurship but impact ventures might offer a compelling laboratory to disentangle the obstacles posed by the combined achievement of financial and social objectives and how organizations might address these challenges.
Part of the book: Entrepreneurship