Marginalized Returns - Impact Investing Has Been Seduced by a False Narrative o...

Aug 2017
Global, August, 25 2017 - Here is the reality: The most impactful and successful of social enterprises in emerging economies—even in developed countries—are likely to generate only low-single-digit financial returns. This is hardly surprising. They bear not only the same risks faced by all startup enterprises but also the challenge of testing, adapting, and refining business models appropriate to marginalized communities—who typically have previously either lacked access to the new product or service, or had it provided for free. Furthermore, such enterprises make business decisions—on prices, wages, and hiring—in a way that maximizes long-term social benefit against short-term financial gain.

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