This week I had the opportunity to attend SOCAP10, one of the largest and most influential conferences in the field of social entrepreneurship and impact investing. The conference was themed around discussing the â€œintersection of money and meaningâ€ and included major players in the field including the Bill and Melinda Gates Foundation, Rockefeller Foundation, US AID, Omidyar Network, Kiva, and Acumen Fund amongst many others. It was overall a pretty amazing experience to meet so many people who are not only interested in making money but to also making the world better and are willing to do what it takes to make that happen.
If youâ€™re new to the social capital market, here are a few keys concepts to understand:
- Social capital market – a â€œnewâ€ understanding that charitable dollars are still capital investments of precious resources and thus for-profit ideals should be applied to the non-profit sector to maximize social impact.
- Impact investing – Socially responsible investing, also known as socially-conscious or ethical investing, describes an investment strategy which seeks to maximize both financial return and social good.
- Social enterprise â€“ organizations that prioritize social mission over profit-making and apply market-based strategies to achieve the social purpose. The movement includes both non-profits that use business models to pursue their mission and for-profit businesses whose primary purposes are social
- Social entrepreneur – someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change.
- Earned Income Model – a decidedly for-profit model that includes selling services and products as a revenue stream but is increasingly becoming an attractive vehicle for nonprofits.
- Crowd-funding – inspired by crowdsourcing, describes the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people.
- Green Jobs Movement â€“ Shift towards jobs that generates electricity using renewable or nuclear fuels, agriculture jobs supplying corn or soy for transportation fuel, manufacturing jobs producing goods used in renewable power generation, equipment dealers and wholesalers specializing in renewable energy or energy-efficiency products, construction and installation of energy and pollution management systems, government administration of environmental programs, and supporting jobs in the engineering, legal, research and consulting fields.
- Triple Bottom Line – People, planet, profit. TBL expands the traditional reporting framework to take into account ecological and social performance in addition to financial performance.