Research on an evaluation model of social impact bonds to reduce the short-term achievements tendency

Abstract

Social Impact Bonds (SIBs) is a new way of public service financing in the world. In this structure, Government, private investors, and social enterprise cooperate together to solve social problems. The main service provider of SIBs is a social enterprise. This paper analyzes the influence of SIBs on social enterprises. Due to imperfect evaluation system, outcome-based SIBs project tends to focus on short term results. It causes the social enterprise to solve social problems unfairly and partially. Therefore, we need to reconstruct the evaluation model of SIBs. In this study, the evaluation model based on the SIB solving homeless problems in the UK is constructed by the weight function. The new model can reduce the restriction of short-term outcome tendency on social enterprise, and ensure the fairness of social enterprise.