Whether you’re an investor with an investment portfolio that achieves positive outcomes for society or an individual or family that actively contributes to various charities, your funds are intentionally used to deliver positive social impact.
According to Good Finance, social impact can be defined as “the effect on people and communities that happens as a result of an action or inaction, an activity, project, programme or policy.” [1]
The Global Impact Investing Network, Inc (GIIN) defines impact investments as “investments made with the intention to generate positive measurable social and environmental impact alongside a financial return.” [2]
Charity or philanthropy is a traditional method by which humans have shared, given and helped each other for centuries. Social impact investing is a ‘super-power’ that turbo-charges the gift by empowering the investee through a long-term solution that removes dependence progressively till full independence is achieved thereby removing the need for philanthropy, state benefits or government hand-outs.
We have intentionally recognised that human identities can be complex and diverse based on the merging of racial and ethnic strands and affiliations to more than one country or region.
Our financing removes financial obstacles that facilitate the upward mobility of individuals and their families from disadvantaged communities or social groups within their own countries (developing economies) as we recognise that academic or entrepreneurial abilities exist across the entire human species regardless of ethnic, social, or national categorisation.
Achieving social impact requires more than financial capital. Human and social capital development is equally important. Our focus, therefore, has been to develop the skills and abilities of new entrepreneurs who have clear business ideas, vision and a determination to succeed. It is not only the new business owner who receives mentoring and support but entire families are strengthened, creating positive impact for their communities, thus building on existing social capital.
The OECD and several other organizations recognize that there is no single definition of social capital. In a statistics working paper published in 2013, Four interpretations of Social Capital: An Agenda for Measurement, the following areas of focus have been identified "(i) personal relationships; (ii) social network support; (iii) civic engagement; and, (iv) trust and cooperative norms." [3] An earlier OECD definition of social capital that is used widely highlights “networks together with shared norms, values and understandings that facilitate cooperation within or among groups”.
There are so many wins for both investors and investees as communities in different jurisdictions unite to work together supporting microbusinesses that deliver social impact. Social capital is created as knowledge, professional experience and networks are shared. New entrepreneurs build on their existing communities while investors facilitate new partnerships through professional networks. Capacity building takes place in the developing economy as human capital is developed through the emergence of new entrepreneurs. Their otherwise under-utilized or unknown capabilities are harnessed as new skills are sharpened on the job. Where possible, life-long learning is facilitated through further education.
Investing in the business idea of an entrepreneur from a disadvantaged social group within their country creates decent work and wages (SDG 8), puts food on the table for the whole family (SDG 2 No Hunger), removes poverty (SDG 1) improves health and wellbeing (SDG 3) while encouraging lifelong learning (SDG 4), reducing inequalities (SDG 10) and developing sustainable communities (SDG 11).
NGOs and charities are no longer solely responsible for these social and human goals. Many of the largest corporations promise investors that they have addressed UN SDGs as an intrinsic part of their activities. See Goals for more information