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Social Enterprise

Social Enterprise

A social enterprise is a type of business that helps people with low incomes get basic goods and services in a way that is affordable, sustainable, and scalable. Most of the time, they are for-profit, which gives them some market discipline and makes it easier to raise capital, but sometimes they can be set up as non-profits. Basic goods and services are things like electricity, water, and sanitation that are usually provided by public utilities in the developed world.

They also include services like education, health care, finance, and housing. Social enterprises usually have a mission that drives them, and their business models are made so that they can have a positive effect on society and/or the environment. Often, specific impact metrics are used to show and track this intentionality. These things make social enterprises different from companies that only care about making money for their shareholders.

This has led to new types of legal incorporation, like “benefit corporations,” where the mission is built into the company’s goals to avoid a possible conflict between making the most money and making an impact. So, company directors have more freedom to make decisions without putting their duty to shareholders at risk.

About Impact Capital Partners

At Impact Capital Partners, our mission is to connect institutional capital with the growing impact investment market to address the world’s most pressing challenges. By utilizing impact investments, institutional investors are able to generate positive, measurable social and environmental impact alongside a financial return. We are constantly finding new impact investment opportunities in both emerging and developed markets, targeting market-rate returns. Schedule a call with us HERE if you’re interested in learning more about our impact investing strategies.

OTHER TERMS

Small and Medium Enterprise (SME)

Small and medium-sized enterprises (SMEs) are businesses with fewer employees, less revenue, and fewer assets than large businesses. The exact defi...

Regulation A+ (“Reg. A+”)

The 2012 “Jump-start Our Business Startups” (JOBS) Act is a U.S. law that is meant to make it easier for small businesses in the U.S. t...

Principles For Responsible Investment (PRI)

In partnership with the UN, this independent organization wants to understand the investment implications of environmental, social, and governance ...

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