The Impact Economy
“The act of sense making is discovering the new terrain as you are inventing it.”—Brian Arthur
The Impact Economy is about using profit-seeking investment to generate social and environmental good by placing capital into businesses and funds that can provide solutions to scale, that often the philanthropic organization is not able to do due to its limited funds or covenant.
A growing group of investors around the world are increasingly seeking to make investments that generate social and environmental value as well as financial return. Sound impossible? Well, no actually. There is a growing recognition of the need for effective solutions to social and environmental challenges that have increasingly real threat and growing inequalities.
Impact investing or more often housed under the broader heading of “Impact Economy” is about finding the ways to combine investors, philanthropists, entrepreneurs and business executives along with governments in finding new and different ways to explore the changing economic and social landscape. Through this emerging newer type of investing there is potentially that the promise of new jobs and profits, mixed in with improved social impact, can be derived from new innovation activities. It needs this convergence and seems to be gathing in pace and broader recognition.
We do need to watch out more for developments in this area