| Economic indicators for at the level of individual people
Economic Indicators at the Community Level
Social enterprises and other organisations can have substantial effects on the economic situations of individuals, households and communities. Increasing personal or household incomes through jobs is one very direct way, but other ways of influencing people’s economic situations include increasing people’s access to public benefits; providing goods or services that individuals would otherwise have needed to pay for, and giving people access to affordable credit.
In addition to influencing outcomes for individuals, organisations may also have a wider impact on the overall local economy. For example, if a social enterprise chose to source most of its goods and services locally, it might help other local businesses thrive and keep money circulating in the local economy. nef calls this idea ‘local money flows’ and measures what it calls the ‘multiplier effect’.
Who might use these indicators?
The indicator of local economic impact, LM3, can be useful for all organisations in an area in need of, or undergoing, regeneration. Some of the indicators, e.g. around decreasing expenditure, will be useful for social enterprises that provide goods or services to people in need. Others, such as credit unions, will have a role in increasing financial literacy, decreasing people’s risk of problem debt or default, and increasing savings. See the table below