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Social Investment Manual: An Introduction for Social Entrepreneurs
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This manual provides social entrepreneurs a comprehensive yet easy to use guidebook on how to develop successful relationships with social investors. The guidebook presents an overview of the social investment landscape, offers concrete approaches to finding and approaching the right investors for social enterprises, as well as the best practices for having a successful due diligence process and for negotiating a mutually beneficial long-term social investment arrangement.
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According to Michie one of the primary functions of a stock exchange is to provide a quick, persistent and constant demand for purchase and sale of security and to establish a liquid market (Michie 1987). In details the functions can be categorized as follows according to Michie (ibid).In short liquidity is a precondition to enable constant sale and purchase of securities and a smooth price building mechanism. This plus the regulation differentiates them from platforms. The NASDAQ explains liquidity in its glossary of financial terms as the ease with which securities can be bought and sold without wide price fluctuations.
Law makers on the legislative houses in Nigeria are elected by party member and the electorate. The members of legislative chambers are constituted through competitive periodic elections to represent different interests recognised by the electorate. Interest desiring representation has included gender, environment, economic, religion, political party, ethnic, and many more. While there are diverse interests requiring representation, the issue of gender representation forms the basic interest of the study. The reason is due to the observed predominance of male over female in gender representation in elective governmental positions while the constitution allows for equal opportunity in democracy. The study appraises the role of political parties in gender representation in the Nigerian legislative chambers, and gender preference by the electorate for political parties’ performance in legislative elections is analysed. The study, adopts qualitative research design in which data were sourced from secondary sources. The study reveals that political parties do not have any reservation for gender in the presentation of candidates for election. The study notes that the choice of voter is beyond gender. The study concludes that gender issues in election may be one of the many factors influencing voter’s decision.
This chapter aims to investigate the link between venture financing and socially responsible investing. Over the past few decades, it has been widely recognised that venture capital (VC) firms are able to create value for their investors (e.g. Gompers et al. 2008; Megginson et al. 2019). However, these skills seem to be no longer sufficient to drive further expansion of the industry, and VC firms are going to be facing some new and important challenges in the coming years. Accordingly, numerous limited partners (LPs) of VC funds around the world are now looking at ESG goals as a priority. Of course, behind this radical change in VC firms’ investment philosophy lies more than just philanthropy: there is also a belief that ESG criteria might help them “do good while doing well”. Against this backdrop, we focus on the key characteristics of VC investments and the degree of implementation of ESG criteria within the VC industry. Second, it discusses how ESG compliance might help VC firms to raise funds, select and build successful firms and facilitate their divestments. Finally, the chapter enquires into the characteristics and perspectives of the social VC and the gender gap in entrepreneurship and the VC industry.
In the post-crisis EU landscape, EU Mediterranean countries are making steps in alleviating the burdens that citizens have carried at the individual and collective level by restructuring their economies and redesigning social protection measures. Social and solidarity economy (SSE) is also a sector that has also seen several impediments in its development, most notably regulatory and financial obstacles and uneven development of the sector despite its growth and positive impact towards vulnerable groups during the crisis among the EU countries. In this new landscape, endogenous local development and the sustainability of the sector relies not only on active social networks and generation of social capital but also on stable and recurring funding sources, as it is necessary to respond to the financial needs of social economy actors and operators, so as to sustain the emerging dynamic of SSE in the EU. This article's scope is to provide evidence-based on a literature review regarding the development of the field both in practice and in scientific discourse with a special focus at the EU Mediterranean countries of Spain, Portugal, and Greece. Among the findings is that Spain and Portugal have been mobilized and adapted faster in including and developing social investment and innovation strategies and consequently the development of supporting frameworks for their social economy sectors, contrary to Greece where despite the move towards advancing its legal framework, there is still lack of sufficient social financing instruments, as well as, little use of the EU financing and supporting framework towards financing its social economy sector. The article addresses the pivotal role of social financing in supporting social economy organizations endeavors and presents an overview of the different forms of development of the social financing initiatives that are taking place in Spain, Portugal, and Greece.
Access to finance at a ‘fair price’ is one of the major issues in many economies. Both developed and developing economies struggle to fund promising social entrepreneurs. The traditional financial systems are designed to discourage promising social entrepreneurs without any collateral from obtaining financial services. To address this disequilibrium in the finance ecosystem, impact investing is one of the most promising, innovative types of financing aimed at making the financial system more inclusive.
The field of impact investing is growing, and multiple players populate it. They provide substantial capital to projects and social enterprises with a strong social mission and promising financial return capability. However, there remains a lack of a knowledge base to understand the complexities surrounding impact investing, investment logics, and organizational form. The lack of a strong knowledge base of impact investing increases the risks (financial risks, legitimacy risks, and institutional risks) of impact investments. Therefore, this thesis investigates impact investing, historical development, distinction, investment strategies, and their relationship with investee firms. The thesis aims to develop a greater understanding of impact investing. It provides elements that should offer a more significant knowledge base upon which investors can base their impact investing decisions.
First, legitimacy of impact investing is linked to how well it selects and invests in social enterprises. Second, most venture capital literature is focused on the performance of investees. The performance of impact investing is tied to social and commercial value creation. Given the difference in objectives of (compared with traditional venture capital firms), our understanding of how impact investors and investee social enterprises interact at the inter-organizational level remains weak and must be explored. Third, most studies on impact investing consider it as merely a practice of investing with social and financial benefits. Given the vast institutional difference between the global north and the global south, how social and commercial expectations vary remains to be explored.
This dissertation is composed of three articles, each contributing to impact-investing field by drawing insights from the institutional theory, institutional logic, impact investing, and social entrepreneurship literature. The research design of this dissertation primarily relies on a systematic literature review for understanding the current status of the field, interviews, and multiple case studies for developing an in-depth understanding of the process, strategy, and application of impact investing.
Article #1 is a review of 85 impact investing articles that explore the longitudinal growth of the field and compare the development of impact investing scholarship with the Kuhnian scientific paradigm. The analysis in the review suggests that the scholarship in impact investing is currently at the exploratory stage, known as the pre-paradigmatic stage of scientific inquiry. For impact investing scholarship to develop into an established field of inquiry, scholars must expand the scope of inquiry by studying different aspects of the field’s intra-organizational, inter-organizational, and institutional complexities using novel theoretical positions. Also, it must pursue both model development and model testing studies.
The legitimacy of impact investing lies in how effectively it invests and how well it manages its investments. Article #2 is an analysis of multiple cases of six impact investing firms and their investees based out of India, exploring the inter-organizational collaboration between impact investors and investee social enterprises. Using competing logics literature and inter-organizational literature, the article provides insights into impact investing and investee social enterprises. It further empirically recommends strategies for long-term engagement and sustainable value creation between impact investing and investee social enterprises.
The dominating view on impact investing field is that its scholarship lacks depth and breadth. Article #3 explores questions related to variance among impact investors at the global level and examines the impact of investment strategies. To answer these questions, the article presents an interview of impact investors from 22 cases of impact investing firms. Based on the context, the article suggests three distinct categories of impact investing. Similarly, using context and the literature on value creation, article #3 suggests three separate impact investing strategies. Furthermore, the article discusses the implications of these suggestions on our understanding of competing goals' hybridization.
These three articles collectively form the core of the dissertation and provide a broad overview of what is currently being studied, what is missing, and what must be considered in impact investing.
First, the dissertation provides a clear understanding of the current growth in impact investing and future research possibilities. Also, the articles suggest a list of impact investing strategies that impact investors should pursue. The article discusses how impact investors and investee social enterprises must interact to establish a sustainable collaboration that ensures long-term value creation. Overall, the dissertation makes a significant contribution to impact investing and expands upon the knowledge base of practitioners investing in social enterprises.
Since the 2007/2008 financial crisis, questions have been raised about how financial markets operate and can benefit society (Shiller, Finance and the Good Society. Princeton: Princeton University Press 2013; Zingales, Does Finance Benefit Society? Cambridge, MA: National Bureau of Economic Research, 2015). Around the globe, new investment models able to reflect responsible behavior have been claimed in order to keep financial markets in tune with the development of society.
The trend of Social Enterprise (SE) operations has been on the rise globally. Achieving momentum for social values to societies although may be challenging, has been seen as necessary in businesses especially in addressing social issues such as unemployment and environmental problems. SEs are run by social entrepreneurs who combine the spirit of entrepreneurship and community to build social capital towards community improvement. As such, social capital navigates the use of the concept of SEs. It is this social relationship that glues societies together and enables them to get along with one another. The elements of trust, civic spirit, solidarity and readiness drive social capital to move SEs to build and maintain communities. What is important to note is the fact that, even though the numbers in studying SEs are growing, less attention is being paid to the governance and performance measurement of SEs particularly in Malaysia. Thus, this paper aims to propose a governance and performance measurement framework for SEs in creating social values to society. With the governance and performance measurement framework, social enterprises could be moulded to improve the quality of life of poor and disadvantaged people, in line with the government’s New Economic Model (NEM), that includes poverty eradication. Hence, this would be useful to interested parties to establish any form of SEs. In addition, relevant governmental agencies would be able to regulate and monitor the establishments of SEs in the context of governance.
A large number of social enterprises (SEs) use grants as early-stage financing to establish their ventures. However, we know little about the requirements for SEs to receive grants and their follow-up financing opportunities. Based on an interview study with 13 European SEs, we show that SEs need to go through a resource-intensive application process to be able to receive a grant. To finally receive a grant, we find that nonfinancial aspects (e.g., involved people’s passion) and financial sustainability are the most important factors for convincing possible grant providers to finance an SE’s venture. Furthermore, based on signaling theory, we demonstrate that obtaining a grant increases the likelihood of finding follow-up investors. We suggest that further quantitative research should test our conceptual model, which is built on four propositions we formulate.
Eine der zentralen Herausforderungen für Social Enterprises ist die Finanzierung des Wachstums und der Ausweitung ihrer sozialen Wirkung, da konventionelle Finanzquellen des sozialen Sektors oft nur eingeschränkt verfügbar und an einzelne Projekte gebunden sind. So gestalten sich Investitionen in allgemeine Betriebskosten („overheads“) oder die Entwicklung neuer Produkte und Dienstleistungen meist sehr schwer. Als mögliche Lösung haben unter dem Label Social Impact Investing jüngst Ansätze aus dem Venture Capital verstärkt Aufmerksamkeit erfahren. Im vorliegenden Beitrag wird eine systematische empirische Darstellung der größten Herausforderungen für Social Impact Investing in Deutschland vorgelegt. Wir erläutern sowohl die Perspektiven von Intermediären wie auch Beteiligungsunternehmen unter Berücksichtigung der spezifischen Bedingungen für Social Enterprises in Deutschland. Abschließend diskutieren wir einige Schlussfolgerungen für Praktiker und die Politik sowie für die weitere Forschung.
Purpose Impact investing research has not moved beyond the definitional conversation, basic frameworks and models, and terminology clarifications. This article reviews the present state of scholarship, presents a holistic framework of impact investing with contexts, operational details, relationships and outcomes. Based on this framework, the article presents a future research agenda.
The present paper gives an introduction to the situation of social entrepreneurs in Germany. In this context, social entrepreneurs find themselves confronted with the measurement of their performance, the description of their risks and a professional documentation of their work. However, there is a lack of standardization in reporting that could be resolved by developing and implementing a generally accepted standard instructing social entrepreneurs how to assess and communicate their performance and influencing factors to an external audience. It furthermore provides a conceptual framework for a reporting that intends to fill the reporting gap in this sector.
Sozialunternehmen [ebenso wie social enterprises im Sinne von social entrepreneurship organization im Folgenden überwiegend mit SEO bezeichnet] stellen im Gegensatz zu profitorientierten Unternehmen die Verfolgung eines
sozialen Ziels in den Vordergrund ihres unternehmerischen Handelns. Dies hat weitreichende Auswirkungen auf die Möglichkeiten
ihrer Finanzierung.
The paper analyzes the suitability of minority shareholdings by private-equity-investors for family firms. The results are based on qualitative analysis of in-depth interviews with family firms, private-equity-investors and experts. The paper covers the motivation and the process of the share sale, the legal structuring of contracts, and the impact of the private-equity-investors on the family firms. The results reflect a strong satisfaction of the family firms with the minority shareholding. Apart from the capital injection, the family firms benefit from the investors' support in corporate governance, controlling and reporting as well as corporate finance. A crucial prerequisite for a successful partnership is the diligent selection of the investor, as their investment approach can differ to a large extent. Additionally, the legal structuring of the relevant contracts is decisive. The shareholders' agreement and the articles of association shall eliminate potential conflicts between the family firm and the private-equity-investor. Regulations concerning the investors' influence and exit are of high importance.
38 new resource bank
- New Profit
New Profit..................................................... 38
new resource bank........................................ 56
35, 47 Hybrid capital
- Gray Ghost
Gray Ghost Ventures.............................. 35, 47
Hybrid capital............................................... 11
IGNIA........................................................... 35
Impact Investment Exchange Asia............... 62
Impetus Trust................................................ 36
66 Negotiating the financing terms
- Mission Markets
Mission Markets........................................... 66
Negotiating the financing terms.............. 17, 22
New Philanthropy Capital............................. 61
56 Performance measurement
- Onecalifornia Bank
OneCalifornia Bank...................................... 56
Performance measurement............................ 20
PHINEO........................................................ 61
Finanzierung von Sozialunternehmern, Konzepte zur finanziellen Unterstützung von Social Entrepreneurs
- A.-K Achleitner
- R Pöllath
- E Stahl
Achleitner, A.-K., Pöllath, R. & Stahl, E. (Ed.) (2007): "Finanzierung von
Sozialunternehmern, Konzepte zur finanziellen Unterstützung von Social
Entrepreneurs", Stuttgart: Schäffer-Poeschel.