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Social Impact Measurement of Impact Businesses in the Housing Sector


The field of social business can be characterized as organizations that aim to solve social problems with financial sustainability and using market mechanisms (Comini et al 2012). This sector has shown a growing interest in Brazil and abroad (Barki et al 2015). According to JP Morgan's 2015 report, investments in social businesses are greater than US$ 60 billion. A study from Deloitte estimates that currently R$ 13 billion is invested in this sector in Brazil. Despite of the growth and importance of the field, there is still a large gap to assess the social impact of the initiatives of social businesses. Some metrics that seek to assess the impact of social businesses were already developed (eg IRIS, GIIRS). Moreover, some ad hoc studies have already been carried out, especially in the microfinance sector, but there is still a gap to be filled in the development of more in-depth research about the social impact generated by the organizations. Therefore, the aim of this research is to identify the social impact of two different models of social businesses in the housing area. The first is Terra Nova that works with the mediation of human conflict for Sustainable Land Regularization of particular urban areas occupied irregularly and the second is Programa Vivenda that works with the issue of qualitative deficit of housing in the bottom of the pyramid, making homes reforms in the outskirts areas of São Paulo city. Both cases have different social impacts. The Programa Vivenda has the potential to reduce the vulnerability of the population, with improvements in health and self-esteem of its customers. Similarly, Terra Nova has the potential to increase assets, improve self esteem and also the infrastructure in the surrounding regions where it operates. To assess these impacts and its dimensions we will develop a research in two stages. In the first step we will make four focus groups with six to eight participants in each group. The groups aim to identify the perceptions of the population in areas in which Terra Nova and Programa Vivenda operate relative to the work of these organizations and their impact on the region and its customers. In addition to the focus groups, we will make ten in-depth interviews with 10 beneficiaries (five from Terra Nova and five from Programa Vivenda), in order to deepen more personal aspects that can not be addressed in a focus group. In a second quantitative step, we will make a survey with beneficiaries of both programs. We estimate a sample of 300 people, seeking to evaluate the perception of the beneficiaries in relation to the outcomes of the programs. This study aims not to assess the direct impact of the programs, since they do not study non-beneficiaries and neither will we be able to have an ex-ante assessment of the conditions of the beneficiaries. We will investigate only people who had access to the programs. In this survey, we will use the insights from the focus groups to identify more clearly the outcomes and possible negative externalities that the businesses might have generated to the population. This study aims to be the first step in a deeper and longitudinal analysis of the impact of the programs, with the possible creation of an analysis tool that can be used by the businesses to be evaluated continuously. This tool will be extremely valuable to show the benefits of the programs for all stakeholders, facilitating, for example, to raise funds for further investment. (AU)

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