Private Sector Involvement

Small and medium enterprises are often the primary source of employment, social impact and economic growth in emerging market countries. Yet financial institutions lend an insufficient portion of their balance sheets to this sector. Increasingly, investors are stepping in to bridge this funding gap.

Impact investors believe that they can play a part in shaping the future by deploying capital to this sector in an innovative, proactive and socially responsible manner.

illustration by Philippe Lardy

Who is investing for impact?

Investors who know that social enterprises can harness market forces to generate profits while addressing social and environmental concerns. These investors are familiar with the concept of patient capital and are prepared to invest for the benefit of future generations. Such investors include individuals, institutions, foundations and development finance institutions.