At Chaka, we believe in measuring our impact clearly and transparently. To assess the real benefits of our investments, we apply GitLab's North Star ROI methodology. This tool helps us calculate how every dollar invested translates into additional income for the women participating in our incubation program.

📈 What Is ROI and Why Do We Measure It?

Return on Investment (ROI) measures how much benefit is generated for every dollar invested. In our case, it reflects how our incubation process supports participants in increasing their incomes. This indicator not only allows us to evaluate our effectiveness but also to adjust and enhance our support.

In simple terms, the ROI is calculated as follows:

📝 Assumptions and Calculation Approach

In this evaluation, we used the following example:

• 10 participants in the incubation program.

• An 18-month period.

• An initial investment of $15,000 USD.

To estimate the projected incremental income, we applied a counterfactual income approach. This means we compared the participants' income growth to the estimated average income of women with similar characteristics in Argentina who are not part of our program. This methodology provides a realistic assessment of Chaka's direct impact.

🔄 Result: An ROI of 5.04

Based on this analysis, for every dollar invested in the incubation program, participants generate $5.04 USD in net benefits. This outcome reflects the transformative potential of our model and how, with relatively small investments, significant impacts can be achieved.

Important: This ROI is based on a specific scenario and funding amount. With increased resources, the impact could grow substantially, delivering greater economic and social benefits.

💡 What’s Not Measured Here

It is essential to note that this analysis focuses exclusively on the incubation phase. The pre-incubation phase also provides significant benefits through training and capacity building, but these are harder to quantify. We recognize that the knowledge gained has long-term effects, even if it does not immediately translate into increased income.

💰 Conclusion

At Chaka, we aim not only to support women entrepreneurs in their growth but also to continuously measure and improve our impact.

Our ROI of 5.04 serves as a solid indicator of the value generated by each investment. With greater resources, we are ready to scale that impact, benefiting even more women and communities.

If you are looking to generate tangible economic and social impact, let’s talk.