2021-10-12 P&E Agenda - Item 10 - Attachment 1 - Social Return on Investment Evaluation

SROI calculation:
For the SROI, the median value is assigned, and only from members who contributed. This is calculated at:
$7,810,00 over 3 years. This is calculated by the number of members who explained the likely value of the
products and digital business under development, as per the above table.
As the question was posed for the next three (3) years, only 1/3 of this value is included to confine the value to
the immediate 12 months. The moderation of this estimated value can be referenced at Section 8.0.

6.2.2 Related investment

 Are you investing capital in your business or product development?             Number            Percentage
 Yes                                                                            12                60
 Not applicable                                                                 6                 30
 No                                                                             2                 10

The evaluators then asked whether respondents would be comfortable providing information about the
quantum of investment, in confidence. This question was deliberately optional, and only generated a low
response rate. This is understandably sensitive information and may also be dependent on confirmation of
venture capital investment.
For the SROI evaluation the lack of reliable investment data is a limitation, as this would be attributed as a
direct economic benefit. However, a marginal level of investment is included within this SROI. This is calculated
at $15,000 only for each of the 12 members who confirmed the investment of capital, with ‘drop off’ also
calculated. This approach is assumed to under-allocate potential investment value, as the few members who
provided a response explained they would be investing between $50-100K, or greater on product
development.
From the perspective of the SROI assessment, under-allocation is legitimate as this investment has not been
realised, although the Digital Hub is a considerable factor as to whether this eventuates.


 Value of average monthly personal consumption related to business activities     Number
 undertaken at the Digital Hub
 5K/month                                                                         6
 5-10K/month                                                                      1
 50-100K/month                                                                    1
 Prefer not to say                                                                5

While this question only generated a low response, it demonstrates there is identified associated economic
stimulus generated by consumption related to Digital Hub activity.
A proportion of this will be consumption that would have likely happened anyway, such as IT support or
investment in software. However, purchase of IT equipment for new staff or replacement/ upgrade of IT
equipment is a more direct and attributable value (although usually these are ‘lumpy’ and specific purchases,
and not even or ongoing).
For the SROI calculation, the evaluators have allocated a conservative portion of this associated consumption
and economic activity. Adopting a conservative position, evaluators have applied values at the lower range

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