Economic Impact Assessment

What is an Economic Impact Assessment (EIA) and what does it do?

An Economic Impact Assessment (EIA) assesses the impact a business, or project, has on the local economy or wider UK GDP.

An Economic Impact Assessment measures the ripple effect of business activity. It looks beyond the business activity measured in a profit and loss account, as it calculates how a business or project affects economic activity in the surrounding area or even the whole country, through its customers, employees and supply chains.

An Economic Impact Assessment can be used to:

Attract investment: If a business can show that its project will have a positive economic impact, it may attract investment more easily.
Improve reputation: By demonstrating a commitment to positive economic impact, a business can improve its reputation and build stronger relationships with the community within which it operates.
Gain support for future plans: Explaining the positive economic impact of future plans may help gain consents and approvals.

What is involved?

The team at Oxford Brookes Business School have developed an EIA methodology. The application of the methodology is customisable to the nature of the business and the availability of data. We will discuss your requirements, timescales and opportunities to collect relevant data to agree the scope of the EIA. EIAs are based on estimates and assumptions and so we will spend time understanding your business and the available data, before we personalise our analysis to meet your business needs.

The methodology developed by the team at Oxford Brookes Business School considers:

Direct Impact: These are the most obvious effects arising from the business activity and the activity of its suppliers.
Indirect Impact: These are the knock-on effects. The economic stimulus created as a business and its partners buy goods and services from other businesses in its supply chain.
Induced Impact: This is the economic stimulus created by the staff and those employed in the direct supply chain when they spend their salaries on goods and services.

EIA Maturity Model

What is an EIA Maturity Model?

The EIA Maturity Model is a framework that describes how organisations typically use Economic Impact Assessments and how their approach can evolve over time. It sets out three clear “stages” — from one-off compliance reports through to EIA planning and strategy documents — each with its own benefits and limitations. For OBBS, it’s both a diagnostic tool (to understand where a client sits now) and a narrative tool (to show the value of moving up the curve). There is a possible fourth stage; benchmarking and EIA leadership which might be considered in the future.

Using a Maturity Model also provides us with a structure to building our EIA product. Eg: Stage 1 ready Jan 2026, Stage 2 ready April 2026 etc.

Stages

Our four-stage maturity model is designed as a flexible framework, not a fixed pathway. Clients can choose to engage with any individual stage, a combination of stages, or the full process — depending on their specific needs and priorities. Each stage delivers standalone value while also connecting seamlessly to the wider model when taken as a whole. Our model can be adapted to align with your organisation’s specific needs — and if a desired outcome isn’t listed, we can adapt the process to include it.

Stage 1 - Compliance

Ad Hoc Impact Reports

What it is: One-off EIAs for compliance, funding, or planning.

Benefits:

Meets immediate requirements (e.g. planning approval, grant conditions).
Provides a snapshot of economic and/or social contribution.
Quick evidence base for stakeholders.

Stage 2 - Credibility

Structured EIAs

What it is: Introduces standardised templates, and a broader outcome lens (economic + social + environmental + skills).

Benefits:

More credible, comparable results.
Demonstrates impact in the language of multiple stakeholders (funders, regulators, community).
Creates a “house style” of reporting that can be reused and covers a broader set of areas appropriate to that client.
Builds stronger trust with external partners.
Can be used for multiple purposes (year reviews, governance reports, public comms, client comms, financial reports)

Stage 3 - Strategy

Strategic Planning Tool

What it is: EIA embedded into business planning and governance cycles.
Benefits:

Moves from reactive compliance to proactive strategy.
Evidence informs investment, partnership choices, and organisational priorities.
Supports long-term funding bids by tracking impact over time.
Strengthens organisational reputation with robust, ongoing data.

Stage 4 - Leadership (Optional)

Benchmarking & Leadership

What it is: A future possibility that EIA be used for comparisons across sector/region; contributions to collective datasets.
Benefits:

Positions the organisation as a sector leader in transparency and impact.
Provides powerful evidence for lobbying, advocacy, or policy influence.
Attracts funders, investors, and partners who value robust, comparable data.
Creates opportunities to shape standards in their field.