The SROI puzzle: exploring barriers and strategies for effective social value measurement

Purpose The study aims to explore the complexities and challenges of measuring social impact, with a particular emphasis on the practical application of the social return on investment (SROI) methodology. By investigating social enterprises in Georgia, the study seeks to understand how social value is quantified and the implications of such measurements for policy and practice. Design/methodology/approach This study uses a mixed-methods approach, centered on the SROI methodology, to measure the social impact of 11 social enterprises in the Republic of Georgia. It incorporates qualitative interviews and quantitative financial analysis, engaging stakeholders from enterprises, beneficiaries and local authorities. The methodology adapts SROI to the Georgian context, addressing challenges such as data scarcity and cultural sensitivity. Findings Findings reveal significant challenges in social impact measurement, including the complexity of quantifying diverse impacts, lack of standardized methodologies and resource constraints. The application of SROI in Georgia demonstrates its flexibility and the critical role of stakeholder engagement, yet underscores the need for context-specific adaptations and rigorous data collection. Research limitations/implications The study is limited by its geographic focus on Georgia, which may affect the generalizability of findings. In addition, the reliance on stakeholder-reported data introduces potential biases. These limitations highlight the necessity for broader, cross-cultural studies and methodological advancements in social impact measurement. Practical implications The study offers practical insights for organizations implementing SROI, emphasizing the importance of stakeholder engagement, cultural sensitivity and adapting methodologies to local contexts. It suggests strategies for overcoming data limitations and enhancing the credibility of social impact assessments. Social implications The research underscores the transformative potential of social enterprises in addressing societal challenges. By quantifying social impact, organizations can better articulate their contributions to societal well-being, informing policy decisions and fostering a culture that values social over mere economic returns. Originality/value This study contributes to the literature on social impact measurement by detailing the application of SROI in a novel context – Georgia. It addresses a significant gap in understanding how social impact can be measured in transitional economies and offers valuable insights into the methodological and practical challenges involved.