The impact of social business on the economy: the case of Lithuania

Abstract

This article discusses the links and dimensions of social business and other activities as a form of social enterprise. In addition to the theoretical discussion, the practical benefits of social business are analyzed. The benefits for social business were assessed using social performance and impact assessment studies, which assessed changes in key areas such as a change in income, change in housing, change in criminal activity, change in health, and change in income. The benefit-cost ratio and return of social business were determined by conducting the following studies: evaluation of the results of work in a social enterprise using two questionnaires, evaluation of the impact of work in a social enterprise using two research groups, and two questionnaires. The cost-benefit analysis made it possible to assess the benefits and costs of social business and to assess the benefits or value of one euro spent on social business. In this study, the benefit-cost ratio was calculated. The article aims to substantiate the impact of social business on the country's economy, which allows us to calculate the benefits of social business according to the established criteria. Research has shown that work experience, housing, and family and dependents have led to a higher probability of employment, and convictions have significantly reduced the likelihood of employment. Meanwhile, other characteristics such as income level, gender, age, and native language did not have a significant impact on the likelihood of employment in social business. Assessing the averages of different variables in the primary and secondary (secondary) survey, their difference shows a positive result of work in social business. The results of the study also revealed that working in a social business enterprise significantly changed the attitude of employees to work as a social institution and increased their positive attitudes towards the future. The impact assessment study, based on the double-difference method, confirmed the data obtained in the results study and was used in the cost-benefit analysis. The significant positive increase in gross income and labor income over the last month, as well as the number of avoided arrests and changes in stable housing and reduced number of persons counseled on alcohol and drug addiction, led to a positive current net benefit per person employed in the social enterprise for all groups. It amounts to EUR 1.63 per year, with a return of EUR 0.63 per euro spent on social enterprise support.