Social venture capital - a new investment alternative for Indian social entrepreneurs

Author(s):  
Sam Thomas ◽  
Minnu F. Pynadath
2018 ◽  
Vol 47 (3) ◽  
pp. 493-513 ◽  
Author(s):  
Judith Mayer ◽  
Barbara Scheck

Due to a massive increase in available social venture capital (SVC), social entrepreneurs often get to choose among various financing options. As financial parameters can easily be adapted or replicated, this article analyzes how social entrepreneurs evaluate the central nonfinancial features of these funders. Based on an experiment with 44 social entrepreneurs, we assess their perception of the five most relevant criteria for evaluating investor attractiveness: business advisory, network access, information rights, control rights, and reputation of the investor. Our analysis of 1,056 hypothetical decisions reveals that the investor’s reputation is the single most important criterion and that the positive effect of support provided through business advisory and network access strongly outweighs the negative effect of oversight via information rights and control rights. These findings indicate that social entrepreneurs perceive the behavior of SVC investors as steward like rather than principal like.


2019 ◽  
Vol 53 (2) ◽  
pp. 44-54
Author(s):  
Peter Kristofik

Abstract The article aims at providing characterisation of social venture capital in Europe. The introductory part of the contribution deals with its origins and classification. The attention is devoted to various factors that have led to emergence of SVC such as existence of market gap, global crisis, monetary policy, disintermediation and financial innovations. The article also emphasises the fact that there is no unified market and, moreover, that the boundaries between social institution and traditional investors are becoming blurry. The main contribution of this article is to characterise the current state and to describe the latest development of SVC in Europe. The focus of analysis was aimed at defining the investment focus, priorities and resources of SVC. Western Europe is the main target region of SVC during all examined period, followed by Africa and Asia. In all years, top financial beneficiaries are people suffering from poverty followed by children and youth. Amongst the top five targeted beneficiaries are also people with disabilities, unemployed people and women. Whilst trend in geographical focus and financial beneficiaries is stable, focus in investment sector changes over time. Financial inclusion alongside with economic and social development currently represents top sectors that attract more than half of total investments in 2017–2018. At the same time, SVC is becoming more attractive to investors in Europe what confirms the fact that the number of organisation is rising alongside with their budgets.


1997 ◽  
Vol 6 (4) ◽  
pp. 108-111 ◽  
Author(s):  
D. Wayne Silby

The most common forms to align financial investments with ethical, moral, and social considerations are screenings, shareholder advocacy, community investing, and social venture capital funding. Screenings integrate the evaluation of corporate financial and social performances into portfolio selections. Positive screenings target corporations with sound social and environmental responsibility. Negative screenings exclude entities featuring morally and ethically irresponsible corporate conduct. Shareholder advocacy is the active engagement of shareholders in the corporate management by voting, activism, and dialogue. The majority of shareholders exercise their voting rights by proxy resolutions, in which a third party has the right to advocate for the shareholders before the corporate board. Negative shareholder activism comprises political lobbying, consumer boycotts, stakeholder confrontation, and negative publicity. Community investing describe ear-marks of investment funds for community development, but also features access to financial products and services to un(der)served communities. Social venture capital supports pro-social start-ups and social entrepreneurs for the greater goal of increasing the social impact of financial markets. This chapter explores socially responsible investment.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Som Sekhar Bhattacharyya

Purpose The purpose of this paper was to ascertain how social entrepreneurs were required to recognize their new ventures’ scope and scale of operations. The firm boundary was based upon two dimensions, namely, the scope of the offering and its scale. The objective of this research was to ascertain the thinking regarding this of social entrepreneurs engaged through technology-based social entrepreneurship (TBSE). Design/methodology/approach This study conducted an in-depth interview of 26 technology entrepreneurs engaged in social entrepreneurship ventures in India. The interview was carried out based upon a semi-structured open-ended questionnaire. This study undertook thematic and relational content analysis to develop a model of technology-based social entrepreneurs’ venture scoping and scaling. Findings This study found that the antecedent variables were the level of support perceived by social entrepreneur from government and at the industry level. Furthermore, the variables’ entrepreneurial and market orientation of social entrepreneurs were found to be the independent variables. These four variables in turn determined the explorative and exploitative horizon of the technology-based social entrepreneurs. Finally, an interplay of these variables ascertained the perspectives of social entrepreneurs engaged in TBSE regarding the notion of their firm’s scope and scale. Research limitations/implications The theoretical insights developed in this research study provided an integrated theoretical perspective accommodating both environmental perspectives (industry support and government support) and organizational perspectives (entrepreneurial and market aspects). This was in context of TBSE. Practical implications The insights from this research study could provide a robust and comprehensive understanding to social entrepreneurs regarding the strategic thinking towards scale and scope for a technology-based social venture. Originality/value To the best of the author’s knowledge, this study was one of the first theoretical works in TBSE towards scaling versus scoping perspectives.


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