31 oktober 2013

Social Entrepreneurs and or Europe & the Netherlands

On October 23rd I gave a presentation on Social entrepreneurs and or Europe for Society Impact Platform. It is an initiative of the Dutch Ministry of the Interior to support innovative financing for social entrepreneurs.

Here you find the long version of my presentation with additional (mainly Dutch) data and developments. The short version will be posted  on the Society Impact Platform website for further discussion together with the discussion and comments and the presentations by Jane Newark founder & director of Social Finance UK. Socialfinance They run the Social Impact Bonds in the UK and are setting up an European SIB network. You wil find many publications on the website. A summary of aims and funding of present SIB's in Dutch is posted on IINieuws page/impact-investing-in-social-impact-bonds

Second speaker was Ulrich Grabenwarter the Head of Strategic Development-Equity at the European Investment Fund of the European Investment Bank. Institute.eib He is at present building up a new business line dedicated to Social and Impact Investing. Grabenwarter is also author of In search of Gamma: an unconventional perspective on impact investing with Heinrich Liechtenstein for IESE Business School at the University of Navarra, Spain and the Family Office Circle Foundation based on experiences of 60 impact investors. Report: Papers.ssrn.com Summary in Dutch under Academia een afwijkende visie op II in IINieuws 15sept2013

You can contact me for speaking engagements, further publications and information on impact investing at impactinvestmentnews @ yahoo.com


Social entrepreneurs in Europe & the Netherlands
The market
The origin of impact investing

Data on Impact Investing in Europe & the Netherlands
SRI and Impact Investing
HNWI and Impact Investing
Venture Philanthropy in Europe
Charities in the Netherlands
Private Equity in the Netherlands
Crowdfunding in the Netherlands

Social entrepreneurs in Europe and the Netherlands


The UK, Switzerland and Luxemburg
Europe is an interesting place for social entrepreneurs seeking funding especially the UK, Switzerland and Luxemburg with their big financial markets. They excel in specific area's: the UK with Big Society Bank / Capital and charity and Social Impact Bonds. The Boston Consulting Groep expects +600% or 1billion UK £ investments in social finance in 2016 in this favorable investment climate*. Switzerland houses pioneering impact investing funds (but reports only 2,4 billion Euro in impact investments in 2012). The Luxemburg stock exchange lists public equity impact investment opportunities such as UK charity and vaccine bonds. *BCG/The first Billion (pdf)

The Netherlands
In the Netherlands we have pretty unique sustainable banks: small, but specialized and with decades of experience: Triodos and ASN Bank. But there are also bigger financial players and asset managers such as Robeco which offers a range of sustainable investment Funds through its partnership with Swiss SAM: Sustainable Asset Management. And there is SNS Bank Impact Investment Asset Management for institutional investors and the very wealthy wanting to invest in poor people in developing countries.
One of our big banks, ABNAMRO Bank, was once named the most sustainable bank in the world by the Financial Times. ABNAMRO Mees Pierson has worked with Triodos Bank for years for it's private Banking clients and sustainability research. ABNAMRO recently started it's own social impact fund, which by the way is not open to their clients. It is started just to get the feel of running such a fund investing growth capital in Dutch social enterprises. This is especially interesting as in the Netherlands impact investing was mostly focused on investment in developing countries.

So what actually is Impact investing?
It is investing in profit making businesses which have a social and or environmental benefit. Because the business makes a profit, the company can invest in scaling up and investors get their money and a profit which they can also re-invest to scale up the business. And with that it's social and or environmental impact as well. Note that the profit should be related to the risk and the specific market the business operates in such as for instance agriculture, emerging markets etc.

Impact investing: to good to be true?
It does sound like that doesn't it? So there is a lot of interest in impact investing, it's marketing has been called brilliant. Practically all Dutch banks i.e. asset managers claim they can assist their clients with impact investing. But they really mean their private banking and institutional clients.

Van Lanschot Bank promoted it seriously in it Millionaires report last year and a Dutch (VBDO*) report on charities and asset management showed they have great interest to invest with impact as a way to achieve their mission. It would upgrade their sustainable asset management policies from merely excluding the dark side** and focus on seeking the best investment opportunities supporting their mission.
* Vereniging voor Beleggers van Duurzame Ontwikkeling ** AGTAF Companies active in Alcohol, Gambling, Tobacco, Adult Entertainment (Pornography) and Firearms)


Impact investing is still boutique investing
The impact investing market is considered still in its infancy by the players: it is a niche investment market. Boutiques, exclusive specialized investing firms and BIG banks such as JP Morgan Social Finance and in Europe Deutsche bank are promoting it. The main concern, even complaint, is that there are to few deals especially with a decent track record and of substantial size. That is a size of a half a million or a million+ investment and preferably bigger. The deal size is very important because it has to make up for their considerable start-up fees for due diligence research and the extra work, researching the -specific and often new markets- and the impact claims of the investment deal. One of our biggest (pension) investment management organizations PGGM claims it goes for a slightly higher more profit to make up for the extra costs).

These impact claims are to be backed up by an impact measurement system, -preferably- a widely accepted impact metrics system or standard. That allows for benchmarking its impact results within an investors portfolio.

Guestimate for the Impact investment market
This growth investment, big deal, impact metrics impact investment market is guestimated to grow from 50 billion to 500 billion in 10 years. Or 1% of the global asset management market. This is what the -now deceased- Monitor Institute reported back in the end of 2009. It would double the worldwide .0 and become 6% of present Sustainable Responsible Investing market. This accentuating that they are not interchangeable and that impact investing is a specific kind of Sustainable Responsible Investing. More recent guestimates state the worldwide potential is 1 trillion US$.

JP Morgan and the Global Impact Investors Network collected data on Impact investing from their members and clients and they paint an interesting picture. 2/3 is debt, lending and not ownership. The investments aims at social causes such as the billion poorest people on Earth, the Bottom or Base of the Pyramid defined by JK Pralahad, it focusses on agriculture to fight hunger, expanding Microfinance (which is included) by evolving into financial inclusion but also basic needs such as clean water, hygi├źne healthcare and education. In the US the focus is on community development and social housing. Note that Green and clean energy, lowering or ending Carbondioxide emissons and cleantech innovations are excluded though they clearly have a measurable impact.

So where does the big size thinking and US focus in impact investing come from? Impact investing as a marketing term was invented on a conference by large charities, foundations, thinktanks and consultancies working for the greater -often global- good. There were wealthy prosperous charities with large assets and experience with professional asset management. Also High Net Worth Investors are big investors in impact investing, often young innovative entrepreneurs that found themselves incredibly rich overnight, and want to extend their game changing talents into the world of global deficits and opportunities.

A lot of the credit however goes to a centenarian, founded in 1913, the Rockefeller Foundation and its policy advisors championed sustainable investing, Programme Related Investment (a US fiscal instrument) and has had an Impact Investing Action Programme since 2009. It started the Global Impact Investing Network*, an elite investors club and The Gates Foundation came on board once it became aware it's asset portfolio companies where creating a lot of the harm is was trying to solve with it's health programmes...
With the Rockefellers 100 year history of philanthropy and 3 billion US$ in assets, it realized that charities and governments are just not able to solve the problems of the world. Especially not in the face of a population explosion, growing consumption and ecological pressures and possible domino effects.

The fact that there is growing demand, but an inability to meet the worlds demands points at another origin of the idea of impact investing: failing markets. If there is enough food (now) to feed the earth why cant we get to the billion hungry people? and so prevent death, disease, growth distortion, poor results in education and many more negative long term effects. If we have a cheap cure for something as simple as diarrhea why do 700.000 children die every year? If we have the vaccines why can't we prevent unneccesary infant mortality? Actually we are doing pretty well here: since it is possible to invest in vaccine bonds financing vaccine programma's all over the world child mortality is decreasing sharply. It may surprise you to learn that Japanese retail (smaller private) investors are behind this succes.
And of course we all know the big success of microfinance, now a 75 billion US$ market of which by the way the Netherlands as a pioneer holds 2 billion or 8% market share of the international microfinance market of 25 billion US$. It took 30 years and lots of subsidizing, but it now reaches over a hundred million poorer people in developing countries. This sizeable market inspires micro mortgage, micro insurance etc. Sell a lot of it at low prices and you find yourself leapfrogging forward to financial and social security.
* The GIIN has a Dutch European liaison, Harry Hummels prof at UniMaastricht and director of SNS Impact Investment, it has 6 Dutch members, all major impact investors, and about 20 Dutch networkmembers which is a light form of the GIIN membership.

Enter impact investing
Impact Investing shows that if we can get private profit seeking capital involved in solving the worlds problems, we do not only get the-sky-is-the-limit moneywise, we also get business practice involved. Business practice as in running a financially sustainable organization that grows and becomes independent. Maybe even goes public and enters the stock market we have a couple of impact investing funds gone public. Quite the opposite of Governments and philanthropy giving their money away expecting results, maybe even some income, but basically just spending their money and when it is finished or the Programme finishes activities probably will wither away. This happens more than you may realize, because their agenda's are governed by their own finances, the quantity and quality of tackled problems, effective lobbying and the desire AND need to be innovative.... Business practice on the other hand claims efficiency, effectiveness, fast response ability and vitality as it is always competing in a rapidly changing market environment. 
Investment rules rule
But the same sense of business practice rules the investment scene which says you DO NOT invest in a start up, but only in a proven successful business model of a company with an excellent track record and great management team. This explains why the preferred deal size is half a million or a million plus. Impact investors (advisors) as most of the investment sector want to invest GROWTH capital, not research & development phase, marketing research, seed or start up capital or growing a nano size business into a micro business. Adopting a micro sustainable company as an impact investment by large companies is quite popular and 'nice' according to Dr Maximillian Martin but not very effective. I agree, although a forming marketeer I must also admit it is effective impact washing.


So what is a social entrepreneur to do?
Especially when looking for capital and the business (plan) is still in one of these early phases....? Claiming to be sustainable or a social enterprise doesn't cut it anymore these days.

I'd start with getting an impact measurement standard included in the business idea or plan. It gives you an advantage idea of what is considered impact as you are also competing with other aspiring social entrepreneurs promising beneficial effects or impact.

A system preferred by the impact investing elite and BIG finance is available online and it is FREE, including some quite intimidating example investments and a new guide on how to work with it. It is called IRIS it is quite elaborate, but you can focus on a set of most relevant key performance indicators stating your impact claim. Such as job opportunities, income effect, people reached etc.

My guess is that any prospect investor will be quite impressed. And if they have experience with IRIS I hope they limit the impact data demands. Newcomers might get a bit to enthusiastic and ask for additional data. That should be part of the investment deal negotiations. If they cannot truly effectively use the data that you are required to submit is it just extra work for them and you. Time and energy which you cannot put into the social enterprise. Now that can't be a good thing.....

IRIS or Impact Reporting Investment Standard is a quite elaborate instrument, developed by accountants and supported by the Global Impact I-investing Network theGIIN.org. IRIS is still under construction, theGIIN just announced IRIS 3.0 consultations. IRIS is also the basis for GIIRS the Global Impact Investing Rating System www.giirs.org which is a benchmark based on IRIS for impact investors such as Morningstar is for public equity. It makes it possible to compare impact results in the way investors can compare financial results. (2012 Q4: 1,1 billion US$ in GIIRS data base, but no new data released in 2013. It recently merged with B Lab. B Lab is a US fiscal facility for social enterprises)
If you approach a known impact investor you might expect that they will want to compare your impact results to other social enterprises in their portfolio.
BUT I know of only one Dutch social enterprise in the GIIRS system and they are not eager to share their knowledge, so limit the time and energy you put into this for now. This is of course disappointing.
Another metrics system on the GIIRS website is the Small Growing Business Impact Assessment and Impact Measurement Curriculum to upgrade it. It was developed by the Aspen Network for Development (ANDE) whose aim it is to support social enterprises in developing countries.

UK Style
If you find the American metrics IRIS & GIIRS or ANDE's impact assessment unappealing check out the UK's charity matrix or the recently launched SocialStockExchange. Here publicly traded small cap companies assessed by the stock exchange present themselves with impact reports.
I agree with Jed Emerson, the blended value guru who states that impact investing as a investment style is not exclusively for private equity, but can be applied to public equity as well. More: Impact Assets issue brief 1: An Introduction to a Unified Investment Strategy for Impact Impact Assets. Jed Emerson et al. (Pdf) ImpactAssets IssueBrief1 Dutch Summary in IINieuws-15okt12

Charity metrics
When looking for grants, loans or guarantees from charities and non profits: work they often work with their own impact measurement system. Karen Maas found over 30 (American) metrics systems in her thesis 'Corporate Social Performance From Output Measurement to Impact Measurement'. (EUR 2009). Note that some of these metrcis systems were developed for / by company foundations as part of their Corporate Social Responsability activities.
In the Netherelands the Centraal Bureau Fondsenwerving recently published an overview of impact measurement systems for charities. I hope it will stimulate a practice which allows for benchmarking impact results in the Dutch charity sector. More in Dutch in IINieuws-15juli13
Also the Transparantprijs, a transparency prize for Dutch charities, pays special attention to impact reporting. For social entrepreneurs: if you are looking for start-up grants or additional capital from charities, explore their impact measurement ideas and try to incorporate those in your business pland and funding proposal.

DATA on Impact Investing in Europe and the Netherlands

What do we know about Impact Investing in Europe?
Unfortunately theGIIN has not published a separate data set on Impact Investing in Europe, only worldwide, and their data is quite US market oriented 67% is in the US, 51% notional or monetary. Western Europe gets 1% of the number and notional impact investments in the 2012 survey. Dutch GIIN members participated in the survey.
Earlier this month the GIIN organized a conference on impact investing in London, so they do look East, not just South or within. It also has two European liaisons one in the UK and one in the Netherlands, prof Harry Hummels of SNS Impact Investing Asset management.

Exclusively European data
The European data we have is mainly collected by Eurosif, the European sustainable investment organization. They survey Socially Responsible Investing and investments by High Net Worth Investors.

Sustainable investing in Europe amounts to 6,763 Trillion Euro. As in the Netherlands it is dominated by institutional investors: they have 94% market share, with a preference for bonds (51%) stocks (33%) and hedge funds and venture capital. In their 2012 survey Eurosif also asked about impact investments next to: Best-in-Class, ethical investing, exclusion, ESG screening and Engagement.

Eurosif asked about: Microfinance, Social Business en Community investments. It amounts to 8,75 billion Euro. Personally I think is is a low guestimate considering Dutch Institutional investors (pensionfunds and insurance companies) alone claim al least this amount in impact investments. I'll research their reported impact investments one of these days.

Eurosif reported on Microfinance 55%, Social Business 18%, Community investments 19% and other 8%. Unfortunately the data is not specified by country or included in the country profiles. Motivations are supporting sustainable development or Local Community Development, long term returns, Risk management, return opportunities, an alternative for philanthropy, sharing wealth and lastly: an obligation to clients or fiduciary reasons.

Impact investors in Europe
It may be a minor reason, but those fiduciary clients include High Net Worth Individuals (HNWI), billionaires, and they seem to embrace impact investing. Half of them have impact investments next to their cleantech and renewable energy investments. More than half of High Net Worth Individuals invest in microfinance and they expect to increase their allocation. HNWI now prefer to invest in microfinance with 43%, community investing 20% en social enterprises 33%. These were also the focus areas in the survey. Remember the billionaires in this survey were advised by professional asset managers and thus choose good investment deals.

Luckily the EU is promoting impact investment opportunities through its policies for the internal market and liberalizing the market for starting up investment funds. The focus is on Venture Capital for innovative SME's (Small Medium Sized Enterprises) start ups en social businesses. The SME fund is called EuVECA and the Social Business fonds EuSEF. If you have a fund in 1 EU country you can start a fund in all the EU countries. 
European Venture Philanthropy
An other interesting trend is with European Venture Philanthropy, it's Association (EVPA) recently published data of 60 or 60% of their members. Many Venture Philanthropy Foundations have just been launched and joined EVPA. The respondents have invested 1,4 billion Euro, on average 5,2 million Euro in 2011. Which is up 27% from the 4,1 million the year before. Impact is their primary goal, but now half of them also expect financial return (its up from 38% to 48%). And a quarter of them feel impact and financial return are equally important. (was 10%). Social enterprises are by far the largest group investees with 39%, up from 25%'. This growth is achieved in favor of NGO's and young enterprises. It shows Venture Philanthropy is serious about risk assessment.

So who are these venture philanthropists?
Financial institutions 20%, followed by with on average little over 15%: trust funds and foundations, Venture Enterprises, Venture Capital and hedge funds, private individuals, companies and governments.

Dutch charities
The Netherlands is a bigger player in European Venture Philanthropy, but Dutch members are however few and they are the well known Dutch charity impact investors. By the way (Dutch) charities often refer to impact investing as mission related investing. 
We have about a dozen Dutch charities that are also impact investors, be it said that 'trust' or endowment funds are not to keen to share financial information. This might change January 1st when they are obliged to offer such information publicly in exchange for tax facilities. Trust funds are guided by the statutes of the founder, which can be hundreds of years old, long before impact or social investing was invented. Note that a business origin or at present funding by a company, can be a lead for an interest in impact investing such a community development around their plants and / or head offices.

For fundraising charities there is a clear reason why they shy away from impact investing: many have statutes that simply do not allow for grants to go to profit making activities. They themselves are barely allowed to undertake profit making activities in-house by our fiscal authority with a maximum of 15.000 Euro.

So impact investing inhibitions are steered towards their asset management. Asset management by charities is often sustainable, but also often exclusion oriented though best-in-class is increasing in importance. Note that we are talking publicly traded equity. A big step forward this year was the launch of a Dutch Exchange Traded Fund (etf) aligned with Dutch charity exclusion policies. The Think Sustainable World etf invests in the 250 most sustainable companies in the world. This perfectly fits fiduciary asset management because etf's offer risk spreading and are usually much cheaper than funds (of funds).
An impact investing etf is not around, yet. But a proper impact etf would invest in (probably large cap companies) active in impact sectors. That is a long way from -private equity- impact investment in often small and medium sized social enterprises. With the big shake up of the spreading-your-risk-in-investment market, as investment funds loose their pay back fees funding, there wil be turmoil in the fund and etf market after January 1st. It will be interesting to see what will happen the next 6 to 8 months.

AIDA: Attention Interest Desire, but where's the Action?

Dutch Charities are very interested in impact investing, but are also hesitant: waiting for specialized advisors, intermediaries etc. This according to a survey by the Vereniging Beleggers Duurzame Ontwikkeling (VBDO), at the end of 2012. But they also have 23 billion Euro in assets and according to a European Foundation Centre publication, European charities in 15 countries had 237 billion Euros in 2008. They could do much more with their money to achieve their mission than they are doing right now.

Just imagine if they were to invest 1% of their assets as impact investment.... If Dutch charities would only allocate 1% of their assets to impact investing and preferably their spending budget as well. That would mean millions of funding: a lot for impact investing in the Netherlands. Social entrepreneurs could appeal for start up funding or additional funding from charities, closing the gap in their funding needs.

Traditional asset management implies 'Pissing it away' as Michael Porter, the strategy consultant guru, said about US charities with such asset management 5 years ago. Fortunately with these explicit words he also started a new era in charity asset management.

What about Private Investors?
It is the same as drinking fair trade coffee: everybody knows it and likes the idea of sustainable responsible investing, but few actually do it. In the Netherlands it is driven 90% by institutional investors -such as our pension funds and insurance companies. For instance Aegon studied its Sustainable Responsible Investing portfolio last year and concluded almost 70% is actually already impact investing. Note that the SRI portfolio is 3,5 % of its all over assets. It would like to do more in both SRI and impact investing, such as microfinance in Southern Europe, but warns that the Basel II demands, limit their options for impact investing.

Retail investors
Our retail sustainable investing market maybe marginal moneywise, but it is 'hot'! Since the financial crisis, the credit crunch and the Euro crises it flourishes. It grew again with double digit numbers last year, now reaching 14 billion Euro's. These investors are small private investors who invest in a green savings account or a fair trade investment fund or maybe have a second savings or investment account at Triodos or ASN bank.

Saving is with 14,2 billion Euro (+15%) much more popular than direct investing (5,7 billion Euro (-3%). It has been shrinking due to the phasing out of fiscal policies that offered deducting sustainable investments from all over assets. The phasing out has been halted by the latest government, but the damage has clearly been done. Research by Paul Smeets from Maastricht University discovered retail clients at asset manager Robeco and Triodos Bank don't really care about fiscal deductibility (anymore).

But on average Dutch High Net Worth Individuals, the over 130.000 millionaires, are less generous: they expect reasonable returns and would like to see more fiscally favorable policies according to a recent ING Bank lobby. Oikocredit, one of the world largest impact investing funds open to the public, with its head offices located in the Netherlands, states it has many small investors and few large retail investors. But it offers only 1,5% fixed return, almost half our annual inflation making it a solid, but not very attractive investment.More interesting for their coupons are European Investment Bank Climate Bonds that go up to 6%. EIB has excellent rating but offers non euro currencies, sometimes their notional issue price is high, trade is dead, and their rate is often over 100% percent the which makes the effective yield lower especially when an investor has to consider the fixed repayment date.

Private Equity impact investing

A private equity investment in a social enterprise could just offer a more attractive investment with impact. It requires knowledge of equity investing and a higher risk appetite on behalf of the investor and thus should also promise a reasonable return That can however be below the market because of the impact effect if it appeals to the investors ethics and philanthropy ambitions.

Private Equity, the Major league the Netherlands
According to the Dutch Association of private equity investors (NVP) they saw a rising interest from private investors and family offices in private equity investments in 2012. At that time the private equity market had invested about 20 billion Euro declining since the crises. In 2012 it's new investments amounted to 1,3 billion Euro (in 289 companies) compared to 2,3 billion in 2011. The drop is due to lack of major deals, selling acquired private equity or divesting went down 50% to 841 million. 88% of privaty equity investments went to Small Medium Sized Enterprises (SME's) with investments below 5 milion Euro. Over 150 million Euro went to start-ups, Venture Capital grew to 171 million Euro in 2012 (136 million in 2011). More in Dutch on: NVP/OndernemendVermogen (pdf)

Private Equity, the Minor league in the Netherlands
Due to the credit crunch, informal investing is on the rise and quite interesting for impact investing as well. Of course there have always been local and sector investors circles, angel investors and green investors circles such as 'de Groene Zaak'. And BIG banks have small enterprise windows such as Qredits for funding up to 50.000 Euro. It has funded entrepreneurs with over 4000 credit deals. Recently it got an extra 60 million and raised its funding ceiling to 150.000 Euro.

We also see a growing interest in starting Kredietunies, cooperative credit facilities in regions or sectors. Supported by former bankers it is lobbying for regulation supporting their activities to stimulate credit for small and medium-sized enterprises (SME's). It aims at credits up to 250.000 Euro which are unprofitable for banks, but essential for SME's (growth) ambitions. SME's are our big employers with 60% of the jobs and a catalyst for employment growth: impact. Fortunately CDA Parliamentarians took an interest supporting such initiatives and are preparing a legislation proposal. More in Dutch on Kredietunienederland

The big initiatives with big names in their boards get business media or national attention, but most private equity investment vehicles are not to keen to share financial data online, let alone have sector survey data available.

But for the crowdfunding business. They love to collect data and share it.
The European crowdfunding sector grew 50% in 2012 and the Dutch crowdfunding sector grew 560% in 2012. Not lagging, but leading the way.

The Dutch 4 million euro market share of real investing and not just giving money or supporting in exchange for a product or service also grew 560%. On average people invested a couple of hundred euro's, so you do need a crowd and thus a campaign to mobilize a crowd. 
The crowdfunding sector is developing rapidly from an online giving platform (75%) to a risk profiled investment place. The former bank guys offering loans after due diligence acceptance grew fastest. (www.geldvoorelkaar.nl) And recently partnerships with credit assessing companies were announced for crowdfunding for small and medium sized companies, so risk is becoming a serious aspect in the crowdfunding business as well. Here in stead of starting with 20euro and on average a couple of hundred euro investments with a maximum of 40.000 euro we are talking a minimum of 10.000 euro investments.
But none of the crowdfunding platforms have impact investing as a separate category yet, so social entrepreneurs are still just competing with other enterprises for funding. Only OnePlanetCrowd claims all their investing opportunities to be sustainable, but doesn't show impact.

Last but not least don't forget that the government is a big investor in social and environmental causes. Think local, regional or national level. The city of Amsterdam just started a energy fund for businesses and the public. State bonds and the mentioned European Investment Fund climate bonds are impact investments. In the UK charity bonds are funded for services and products paid for by the government. Social impact bonds are completely focused on government tasks and or ambitions.

If social enterprises position themselves as delivering impact results, they might get a subsidy or just a fee for services rendered. That can consequently make them more attractive for investors, if they want to scale up the enterprise or develop new services and products.

All in all

Is Impact 'Pitching' the smart thing to do?
Are social enterprises impact investing missionaries when they go out there looking for funds based on impact investing standards and practices when funding?
Maybe sometimes: yes
But positioning themselves as an impact investment offers a respectable business card from a promising, professionally backed, business sector in high demand. Direct retail investors have few places to go and financing institutions servicing retail customers are now referring to existing sustainable investment products, without standardized impact reports.

I think social enterprises should market themselves as impact investments, but only if impact is incorporated in their business model. Only if they can show impact results based on standardised metrics. Maybe than they can even negotiate lower interest or returns based on higher impact results....

Main Sources:
The Monitor Institute 2009 report on Investing for Social or Environmental impact: Monitorinstitute/impact-investing/Impact_Investing (pdf)

European venture Philanthropy in 2012-EVPA-survey-of-european-venture-philanthropy-and-social-investment Download after registering EVPA.eu.com/OnlineEVPA-Survey2012 Press articles on the survey op: EVPA/press-corner In Dutch Impact-Investing-Nieuws-15-april-2013

EU promotes social enterpreneurs and SME funds (EuVECA en EuSEF) In Dutch Impact-Investing-Nieuws-1april13

SRI in (West) Europa Site eurosif.org The report 2012SRIstudy

Half European HNWI has Impact Investments Rapport Eurosif HNWI 2012 in Dutch Impact-Investing-Nieuws-15-nov12

In Dutch The I-book Een kapitaalinjectie voor het Goede Doel Harald Machielse (Chuva Consultants) en Alcanne Houtzaager with the guestimates of the private capital market and charities looking for private investors in stead of donors. On Impact Investing Nieuws blog I-book-een-kapitaalinjectie-voor-het goede doel or Itunes.apple.com/een-kapitaalinjectie-voor het goede doel

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