An increasing number of investors and social entrepreneurs are realizing that social businesses of all sorts, including many organizations regarded as charitable nonprofits, can create returns satisfactory to the financial markets. The key is always to see the backing of social enterprises as a dilemma of financial structuring. If they treat charitable gifts as a form of capital that seeks social, not financial, returns, organizations can then exploit conventional sources of financing: venture capital firms, banks, mutual funds, bonds, etc.
Than traditional companies do with these attempts; social enterprises could have a bigger universe of investors. This would be a crucial in ensuring a healthier, greener, and just world.
Publication Date: 01/01/2012
This is just an excerpt. This case is about Finance