We are a community enterprise which means our profits are ploughed back into the community and not paid out to shareholders. The CDT tries to find out what will work in Moseley and how we can make a lasting contribution. We want to see how much of an impact we are having on the local economy in Moseley.
Measuring our Local Impact
For many years, people thought that regenerating urban areas relied on attracting more money into the area, such as through investment and tourism. However, a different approach has been developed by the New Economics Foundation (NEF): the local economy can be regenerated from within by taking advantage of the resources that communities already possess. If the money we spend is spent locally, and that money is also re-spent locally, then this generates more money within Moseley.
To measure these flows, NEF developed the Local Multiplier 3 tool (LM3). Moseley Community Development Trust can use the LM3 to track and measure where the money we receive is then spent and re-spent. Increased local circulation of money creates greater benefits across Moseley. The LM3 has been used previously by public, private and non-profit sector organisations across the UK. It will involve surveying local people and businesses that use the Moseley Community Development Trust and the new Exchange co-working space. We will be using it, not only to find out how much we contribute to Moseley’s economy but also how we can further improve our impact.
Using the LM3
In order to calculate the LM3, we will undertake a short survey. It will secure us some strong evidence about our local impact whilst being easy to undertake and evaluate. The LM3 involves three rounds of measuring:
It starts by analysing the Moseley CDT’s initial income
We then measure how much we spend as an organisation on staff and suppliers within Moseley
Next, we measure how much of this income is being re-spent locally by these people and organisations linked to the CDT, forming
Once we have these figures we add them together and divide by the initial income, this is the Local Multiplier 3. It is an indicator rather than an exact measurement. The greater the number, the stronger an impact the CDT is having upon the local economy. We can therefore estimate how much money the CDT generates for the local economy for each pound spent. We can then look at each round to see where we can improve this local impact in the future and demonstrate to grant awarding bodies and the Local Authority the value of community-based organisations like the CDT.
Who is involved?
The project was led by Colin Lorne, a researcher at the University of Birmingham with the Moseley Community Development Trust.
You can download the final report at the bottom of this page