The impact of inclusive entrepreneurship cannot be measured solely by the number of businesses launched. When we create equitable access to the economy, we generate individual and household prosperity as well as broad community and economic benefits that can be felt many years into the future.
RMMFI uses a Social Return on Investment (SROI) framework to measure and communicate the broad, long-term impact of our work. By combining our program outcomes with external research and financial metrics, projecting results over five years, and factoring in risk and unknowns, we can calculate — and prove — our social and economic impact.
Our latest SROI analysis shows that for every $1 invested in RMMFI, we created $3.98 in measurable social and economic impact. In the long term, the ripple effects of our work last year will generate $9,622,691 in entrepreneur and community benefits. $5,948,794 of that represents direct impact to entrepreneurs through benefits like increased financial stability, better life outcomes, and increased capital and investments. $3,673,896 represents impact for our community in the form of decreased emergency assistance needs, increased public safety, and increased local tax revenue.
Compared to the previous year, our total social and economic impact last year grew by more than $4.6 million. We had significant growth in the number of businesses with positive outcomes due to serving more entrepreneurs at more sites and strengthening the journey through our programs. The entrepreneurs we support saw greater household income gains than in previous years, which is especially promising coming out of a pandemic economy. We also served more high-barrier entrepreneurs than ever, including those that have been formerly incarcerated, which research has shown can create vast individual and community benefits.
We invite you to read more about our SROI analysis and celebrate the incredible impact Colorado entrepreneurs create for their families, their businesses, and our shared community.