Is the Social Enterprise Bubble About to Burst?
“Over the past two months, GOOD has profiled organizations in Africa using market solutions to solve water and sanitation challenges, improve agriculture, and promote public health. Social enterprises like these are transforming development work, and social entrepreneurs are being hailed as rock stars.
But social enterprise isn’t the first trend to hit the development sector. From women’s empowerment to “sustainability” to microfinance, the aid community has moved through its stash of silver bullets. What makes social enterprise any different?”
(via GOOD.is)
“Social business is a loaded term, and an increasingly popular one. Do you really know what it means? Do you know where the core value of a social business lies? The infographic below will help.” (via Global Dawn and @Forbes)
The Trouble With Impact Investing
“For all the hoopla, the definition of impact investing is still a dog’s breakfast. Inclusive definitions throw in everything from small donations (huh?) to investments that provide a market rate of return or above (which sounds a lot like plain vanilla investing).” (via SSIR)
Some interesting points…thoughts? What’s the problem with a both/and approach instead of either/or?
The Rise of the Charitable For-Profit Entity
“Many Americans, and millions of business owners, want to do more than simply turn a profit — although they certainly have nothing against making money. Their goals also include improving the environment and developing communities. In the classic model, these social purposes had to be pursued in a non-profit corporation. But some regulations on tax-exempt non-profits such as limitations on political and lobbying activities, attracting and raising investment capital in addition to taxes on unrelated business income have made it a less desirable business entity for some.”
(via Forbes)
Should Philanthropies Operate Like Businesses?
“What should you expect of your charities? Businesslike efficiency? Or something more intangible, less-easily defined?
Charles R. Bronfman and Jeffrey R. Solomon, chairman and president, respectively, of the Andrea and Charles Bronfman Philanthropies, favor businesslike thinking. Michael Edwards, a distinguished senior fellow at Demos, a social issues think tank, argues that social values should take precedence.” (via WSJ)
(I say YES…and no….what do you think?)
(via the World Bank)
“In just one day, more than 200 million hours of women’s time is consumed for the most basic of human needs — collecting water for domestic use.”
(infographic courtesy of water.org)
5 Skill Sets Impact Investing Managers Should Cultivate
1. Technical: Specialized knowledge bases, including, but not limited to social sectors (health, housing, education, etc), technology and systems, operations. The greater the breadth and depth of knowledge, the better the chances of finding & exploiting hidden synergies and opportunities.
2. Tactical: Think of tactical skills as the “how” response to a technical challenge. What financial instruments has an individual used and how creative were the structures and deals? How well do these skills translate? An equity analyst used to widely-covered and analyzed US stocks might find due diligence on early stage emerging markets social enterprises to be a completely new experience. Fundraising is another important tactical skill to keep in the mix.
3. Strategic: My definition of strategy covers values, vision and empathy. The ability to explore and assess the potential rewards or consequences of a given action or investment is a critical skill for investment managers. When problem-solving, how many alternatives does a person typically generate, or do they tend to see a single “right” answer based on precedent? Creativity, curiosity and healthy understanding of risk (in all its forms) play a role in effective strategy development. It may require time and direct interaction to understand a person’s strategic competence, and not everyone is strategically inclined. We’ve all known brilliant analysts without a strategic bone in their bodies: this is worth thinking about when you’re designing individual career development plans!
4. Communications & Management: I think of this skill set as a continuum of relationship and leadership building. As an analyst, your ability to crunch numbers, write and deliver clear arguments for or against an investment may be what matters most. By the time you’ve matured into a senior investment officer, manager or director, the ability to inspire and motivate others is likely a higher priority.
5. Geographic: Don’t let the name lull you into complacency. Geographic skills include cultural understanding, languages, field experience and even academic background. While you always have the option of deploying excellent technicians and tacticians without any of this “geographic” expertise, I guarantee that understanding local language, culture and history contribute to better performance outcomes.
The Hopeful Continent: Africa Rising After Decades of Slow Growth (Africa has a real chance to follow in the footsteps of Asia)
(via http://www.economist.com/node/21541008)
We Need a Battery Miracle
All the batteries on Earth store just 10 mins of world electricity needs. This new battery may be key.
(via @BillGates)
