Professional success for business owners often comes from financial data. While economic success is crucial for your company’s longevity, female entrepreneurs are learning how to measure social impact to create success frameworks for themselves.
You can use the same strategies to understand how your business is helping or hurting society. You’ll better gauge whether you’re reaching your personal success metrics beyond revenue, which can make your work more fulfilling.
Why social impact matters for business owners
Social impact is a crucial consideration for entrepreneurs. Helping people and the world at large may increase your consumer base and generate additional financial success.
The Australian Retailers Association (ARA) found that 69 per cent of consumers believe retail companies should respond to environmental and social issues. If your company does both, you’ll attract conscious consumers and potentially employees who want to work for a business that aligns with their social values.
You also likely started your business for multiple reasons. Being your own boss is nice, but you may want to help people with innovation or employment opportunities, too. Adding social success metrics to your business reviews will help you reach those goals. You won’t focus exclusively on your revenue, making it easier to create a resilient company with deep roots in your community.
How female entrepreneurs measure their impact
You can measure the impact of your business on the world through various strategies. Remember them as you evaluate your company’s financial success and decide how to mark the next chapter of its growth.
1. Ongoing community engagement
People won’t feel like your company is active in the community if you’re not engaging them beyond your products and services. Look for ways that your team can support people in need, like volunteer days.
You could match your efforts with your company’s core values, like working on an organic community garden, because your landscaping business avoids chemical-based pesticides.
Researchers also found that 93 per cent of people who volunteer with their workplaces are happier in their jobs. Your volunteer work will help the community and make your employees feel fulfilled. They may stick around long term, helping your business reach your goals without costly turnover.
2. Customer impact feedback
You could gauge your company’s success with leading researchers, but there’s always the potential for error if your customers don’t have a voice. Anyone who wants to measure their social impact should hear directly from their consumer base.
Send surveys or ask people for their thoughts while they’re in your store. You can always get public opinions from your reviews, but they won’t be helpful if customers don’t leave reviews often. Asking if you’re helping them as intended or if you should refine your strategies will improve your impact.
3. Environmental sustainability readings
Part of helping society is ensuring that your company doesn’t harm the Earth. People at large are better off if the planet is healthy. Adding environmental efforts to your business practices and measuring those results will give you a better idea of your total social impact.
Businesses and homes accounted for 17 per cent of Victoria’s greenhouse gas emissions in 2023. If every business owner there started making sustainable changes to their operations, that percentage could be much lower. Doing the same for your company will help the environment and everyone who depends on having clean air and pollution-free water.
4. Employee wellbeing reviews
Helping society is a noble effort, but it won’t help your business as much if your team members feel overworked. Ongoing workplace stressors can cause health issues like depression, anxiety and chronic pain.
Meet with your employees regularly to discuss how they feel on the job. If they’re free to raise concerns and brainstorm solutions, you’ll know how to improve the social dynamic within your company so everyone thrives while working toward your entrepreneurial goals.
5. Social return on investment data
Social return on investment (SROI) is data that shows the direct social and environmental benefits of a company’s financial decisions. The key statistics are something to remember alongside customer and employee feedback. You can obtain your SROI data by gathering details such as storefront energy audits and the costs associated with your volunteer efforts.
Compare your findings with the amount of positive feedback from your consumer base and employees. The results will reveal if you’re on the right track. Gathering accurate statistics is crucial to remember as you learn how to measure social impact throughout your career.
Do the same with your business
If you’re ready to start measuring your societal effect differently, outline your key metrics. Do you want to focus your efforts on improving the environment, uplifting your community or aligning daily operations with your personal values?
Once you have chosen at least one goal, decide how you’ll track your progress. For example, you could automate an email newsletter to reduce paper waste from printed advertisements you formerly mailed to local addresses.
Schedule recurring reminders to review your social impact strategies and verify if they’re helping you attain your goals.
Learn how to measure social impact
Your entrepreneurial career can do more than pay the bills. You could also help people in need and the world at large. Once you learn how to gauge your company’s social impact, you’ll be able to set goals and create strategies to improve your corner of the world.
