Fundación Paraguaya (B): Measuring Social Impact

by: Paul Godfrey

Publication Date: December 2, 2011
Length: 8 pages
Product ID#: 1-429-217

Core Disciplines: Base of the Pyramid, Entrepreneurship & Innovation, Social Impact, Strategy & Management

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Teaching Note

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This case accompanies the Fundacion Paraguaya (A) case. Martin Burt, CEO of Fundacion Paraguay, has helped another school become financially self-sufficient using the same business model he applied to the San Francisco High School, but has found that replicating his success requires more financial capital than he had initially thought. Since banks are hesitant to lend to his business, Martin must turn to venture philanthropists for funding. Martin employs a Social Return on Investment (SROI) metric to prove the legitimacy of his project to the philanthropists.

Teaching Objectives

After reading and discussing the material, students should:

  • Explain how an organization develops and implements a new business model.
  • Gain a solid analytical understanding of the elements that create value for stakeholders.
  • Synthesize a complete business model and see the challenges to replication and scalability that may occur.
  • Calculate the Social Return on Investment (SROI) of the new model to see both the potential advantages of measurement as well as the difficulties.
  • Compose a set of larger, more abstract questions about social impact measurement.