scholarly journals Legitimacy Trade-Offs in Hybrid Fields: An Illustration Through Microfinance, Impact Investing and Social Entrepreneurship

2020 ◽  
pp. 291-312
Author(s):  
Guillermo Casasnovas ◽  
Myrto Chliova
Keyword(s):  
Social Entrepreneurship ◽  
Impact Investing ◽  
Trade Offs

SOCIAL ENTREPRENEURSHIP AND IMPACT INVESTING

2013 ◽  
Vol 78 (2) ◽  
pp. 209-221
Author(s):  
Maarten J. Verkerk
Keyword(s):  
Financial Institutions ◽  
Social Entrepreneurship ◽  
World View ◽  
Economic Prosperity ◽  
Social Entrepreneurs ◽  
Impact Investing ◽  
Environmental Objectives ◽  
Accounting Scandals ◽  
Corporate Social ◽  
Global World

The financial crisis and accounting scandals in large companies have stimulated a thorough assessment of the contribution of enterprises and financial institutions to the greater public good and economic prosperity. This assessment has led to a revaluation of the ideas of social entrepreneurship and impact investing. In this article we explore the nature and character of these ideas by a philosophical analysis and by comparison with profit-driven organizations and corporate social responsibility. We show that social entrepreneurs and impact investors distinguish themselves by their social and environmental objectives, their focus on the justified interests of all stakeholders, and their values and world view. We also make a reasonable case that in the coming decade social entrepreneurs and impact investors will play an important role in the development of the global world.

Impact investing in South Africa: managing tensions between financial returns and social impact

2019 ◽  
Vol 31 (3) ◽  
pp. 397-419 ◽  
Author(s):  
Eunivicia Matlhogonolo Mogapi ◽  
Margaret Mary Sutherland ◽  
Anthony Wilson-Prangley
Keyword(s):  
South Africa ◽  
Social Impact ◽  
Emerging Market ◽  
Financial Returns ◽  
African Countries ◽  
Financial Return ◽  
Impact Investing ◽  
Content Type ◽  
Trade Offs ◽  
The Impact

Purpose Impact investment is an emergent field worldwide and it can play an especially important role in Africa. The aim of this study was to examine how impact investors in South Africa manage the tensions between financial returns and social impact. Design/methodology/approach The research was based on 15 semi-structured interviews with key stakeholders in the impact investment community in South Africa to understand the related challenges, trade-offs and tensions. Findings There are two opposing views expressed as to whether the tensions between financial return and social impact result in trade-offs. It is proposed that impact investors embrace this duality and seek to approach it through a contingency and a paradox view. The tensions can be approached by focussing on values alignment, contracting processes, engaged leadership and sector identification. The authors integrate the findings into a proposed framework for effective tension management in an impact investment portfolio. Research limitations/implications This study was limited to selected South African interviewees. It would be valuable to extend the study to other African countries. Practical implications The issue of values alignment between investors, fund managers and investee firms is an important finding for practice. As is the four-part iterative framework for sensing the operating environment, defining impact, organising internally and defining the investment approach. Originality/value This study contributes empirical evidence to scholarship around organisational tensions, especially work in hybrid organisations. It affirms the value of a nuanced application of paradox theory. It examines these tensions through the lived experience of impact investing professionals in an emerging market context.

scholarly journals Universities as Intermediaries: Impact Investing and Social Entrepreneurship

2015 ◽  
Vol 2015 (1) ◽  
pp. 18886 ◽  
Author(s):  
Rebecca Tekula ◽  
Archana Shah ◽  
Jordan Jhamb
Keyword(s):  
Social Entrepreneurship ◽  
Impact Investing

scholarly journals FINANCING OF ORGANIC PRODUCTION IN THE CONTEXT OF IMPACT INVESTING

2019 ◽  
pp. 55-63
Author(s):  
Olena PRUTSKA
Keyword(s):  
Social Entrepreneurship ◽  
Rural Areas ◽  
Agricultural Production ◽  
Organic Production ◽  
Social Enterprises ◽  
Impact Investing ◽  
Responsible Investment ◽  
Positive Effects ◽  
Global Standards ◽  
Search Market

The article considers and justifies the approach to the financing of organic production as a component of the concept of impact-investing. The essence, features and tools of impact-investment are considered. Impact-investing differences from social investment, socially responsible investment and social entrepreneurship are considered. It is proved that Impact Investment is the newest financial strategy for social development, provides for investments in business projects that initially focused on profit and positive changes in society or the environment It is noted that scientific consideration of impact investing has not yet been given due attention in Ukraine. The subject of research is at the intersection of financial technology, social entrepreneurship and organic agro-production. Impact investing is considered a separate case of social investing with more clearly defined boundaries. Examples of social enterprises both in agriculture and in the restaurant business and in manufacturing are known in Ukraine. Because social entrepreneurship is a business, it has all the rules of the business: niche search, market research, competition, investment, and more. Impact investments help measure the external effects of doing business. With the introduction of the investment impact criterion, it becomes possible to determine what this business impact is, how to measure, study and understand it. It is emphasized that Impact investing is only beginning to develop in Ukraine. Over the past few years, examples of such investments have emerged in Kyiv, Lviv, Odessa, Ivano-Frankivsk and other cities. Most of them have started their business through local businesses and have relatively small initial investments by global standards. The opinion is grounded that investment in the development of organic production can be considered as a form of impact investment. It is concluded that, given the great social importance of the development of organic production, as well as the positive effects that organic agricultural production can potentially have on the development of rural areas, the use of financial resources of agricultural holdings may be promising. It was proposed to provide a differentiated approach to the collection of a fixed agricultural tax (FAS), taking into account the availability of investments in organic agricultural production, which would have prompted agricultural holdings to include organic production units in their structure. Investments in the development of organic agricultural production, which are proposed to be considered as impact investments, would allow domestic agro-holdings to a certain extent “rehabilitate”, improve their image, give their debt to society, and contribute to the development of rural areas.

Zoona mobile money: investing for impact (cases A and B)

2017 ◽  
Vol 7 (2) ◽  
pp. 1-27
Author(s):  
John Bazley ◽  
Cynthia Schweer Rayner ◽  
Aunnie Patton Power
Keyword(s):  
Financial Services ◽  
Private Equity ◽  
Subject Area ◽  
Impact Investing ◽  
Content Type ◽  
Mobile Money ◽  
Trade Offs ◽  
Start Up ◽  
High Level ◽  
Investment Process

Subject area Impact investing, Social enterprise. Study level/applicability MBA, EMBA, Executive Education. Case overview Zoona mobile money: investing for impact details a slightly altered version of the real events that occurred in late 2011 with the series A round of investment in Zoona, a mobile money business in Zambia. The focus is on the decisions that have to be made by the management team of a socially innovative tech start-up (Zoona) providing mobile money and financial services to previously unbanked consumers in Zambia. Expected learning outcomes By the end of this case, the student should be able to: understand the basics of term sheets and be able to perform a high level analysis and comparison of two distinct term sheets; identify investor objectives, ultimately recognising the general differences between private equity and venture capital investors; identify and weigh the costs and benefits of term sheets, as well as identify negotiating points and necessary trade-offs in the investment process; and identify and understand the “soft” benefits of investors and weigh these in relation to a term sheet analysis. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 1: Accounting and Finance.

Finance or philanthropy? Exploring the motivations and criteria of impact investors

2017 ◽  
Vol 13 (3) ◽  
pp. 491-512 ◽  
Author(s):  
Philip Roundy ◽  
Hunter Holzhauer ◽  
Ye Dai
Keyword(s):  
Social Entrepreneurship ◽  
Early Stage ◽  
Venture Capitalists ◽  
Structured Interviews ◽  
Socially Responsible ◽  
Impact Investing ◽  
Content Type ◽  
For Profit ◽  
Responsible Investing ◽  
Ethnographic Observation

Purpose The growing prevalence of social entrepreneurship has been coupled with an increasing number of so-called “impact investors”. However, much remains to be learned about this nascent class of investors. To address the dearth of scholarly attention to impact investing, this study seeks to answer four questions that are central to understanding the phenomenon. What are the defining characteristics of impact investing? Do impact investors differ from traditional classes of investors and, if so, how? What are the motivations that drive impact investment? And, what criteria do impact investors use when evaluating potential investments? Design/methodology/approach A partially inductive study based on semi-structured interviews with 31 investors and ethnographic observation was conducted to explore how impact investors differ from other classes of investors in their motivations and unique criteria used to evaluate ventures seeking investment. Findings This study reveals that impact investors represent a unique class of investors that differs from socially responsible investing, from other types of for-profit investors, such as venture capitalists and angel investors, and from traditional philanthropists. The varied motivations of impact investors and the criteria they use to evaluate investments are identified. Originality/value Despite the growing practitioner and media attention to impact investing, several foundational issues remain unaddressed. This study takes the first steps toward shedding light on this new realm of early-stage venture investing and clarifying its role in larger efforts of social responsibility.

Gouritz Cluster Biosphere Reserve: towards sustainability

2018 ◽  
Vol 8 (4) ◽  
pp. 1-22
Author(s):  
Boris Urban ◽  
Claire Beswick
Keyword(s):  
Social Entrepreneurship ◽  
Biosphere Reserve ◽  
Social Enterprises ◽  
Board Members ◽  
Western Cape ◽  
Content Type ◽  
Non Profit ◽  
For Profit ◽  
Academic Level ◽  
Trade Offs

Theoretical basis Research methodology. Teaching note Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Learning outcomes At the end of the case discussion, the students should be able to: demonstrate an understanding of the similarities and differences between profit and non-profit organisations; discuss social entrepreneurship as a process-driven set of activities; assess the organisation-environment-opportunity fit of the dilemma facing them; analyse and resolve practical issues in developing structure and systems; diagnose organisational issues facing enterprises wishing to formalise and grow; evaluate how an organisation may achieve both social and profit objectives; and appreciate the trade-offs of adopting a profit-driven approach for social enterprises. Case overview/synopsis: From her office on her farm in the Eden District of South Africa’s Western Cape province, Wendy Crane, who had for many years been involved in the conservation efforts of the Gouritz Cluster Biosphere Reserve (GCBR), drank in the view of the Langeberg Mountains. Her pleasure was a bit diminished by the knowledge that, like so many parts of the GCBR, this area’s environment was under threat. She was preparing for a meeting in March 2017 of the board of the non-profit company (NPC) that sought to initiate and coordinate activities that would achieve the goals of the GCBR. The NPC board members wanted the organisation to be self-sustaining when it came to core costs. To this end, the board had established Gouritz Enterprises as a social enterprise that would be responsible for profit-driven activities which would fund the NPC’s core costs. The enterprise had not yet started work in any formal way, and Crane was not sure if establishing a separate profit-driven entity was the best way of achieving the self-financing goal. Complexity academic level Post-graduate management diploma MBAC. Subject code: CSS 3: Entrepreneurship.

scholarly journals Time to act: discourse on time in crowdfunding for social entrepreneurship project

2019 ◽  
Vol 13 (1) ◽  
pp. 1162-1172
Author(s):  
Oana Mara Stan ◽  
Mina Fanea-Ivanovici
Keyword(s):  
Social Services ◽  
Social Entrepreneurship ◽  
Time Management ◽  
Time Pressure ◽  
Public Governance ◽  
Individual Agency ◽  
Emerging Trends ◽  
Trade Offs ◽  
Study Case ◽  
Chart Patterns

Abstract The context of public governance outsourcing social services and constantly downshifting its role creates the premises for increasing impact of crowdsourced social entrepreneurship and grassroots mobilization. The study envisions the innovative concept of social entrepreneurship by crowdfunding through a sports event, with Swimathon as study case, where most of Romanian NGOs are active to promote their calls for fundraising. Swimmer-participants are fundraisers who take on a challenge (e.g. swimming a target distance) with the aim to raise funds, in teams, for the causes they support. This fundraising event involves donors in a participative setting that combines short-term volunteering and crowdfunding. The research aims to understand practices by which crowdfunding projects grouped into categories navigate constructs on time. The ensuing research questions are as follows: What typology of time orientation do crowdfunding projects in the Romanian landscape of sports-oriented social entrepreneurship display? What do they shift, reshape, and build on in terms of time agency, time management and time empowerment? The current study seeks to uncover and chart patterns of time-bound discursive strategies that aim to attract donors for crowdfunding projects in Romania. It brings forth questions of power and influence, by explaining and synthesizing the variety of manners in which trade-offs and synergies and modelled and mapped. The thematic analysis of fundraising calls for action is structured two-fold, namely: the denotative and the connotative dimension of time. The first component reveals time agency, time use and time management as keynote discursive trends, whereas the second reveals the following categories: time and emotion, quality time and time pressure. Metaphors of time used in the discourse over sustainability appeared coupled with pressure to intervene fast. Findings gathered by connotative discourse analysis induce the idea of grassroots mobilization and individual agency to the forefront, whereas social structures of institutional support are afforded background importance. The study ends with a discussion on implications of using time cues for emerging trends in the build-up process of Romanian crowdfunding projects.

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