Awareness of doing business while providing social impact more obvious in the present era. Profit and purpose must be met in the balance. This means that the business can be run by two impartial mission, namely to profit as well as to the social impact.
Investors are increasingly aware of this. Investors who have an awareness of the social impact will not be indiscriminate in invest. They will invest to business startups that have the same vision and mission with him. Here, the investment is not motivated by profit alone as much as possible, but by concern over human empowerment.
Thus there are two impact , the social impact and financial impact . Both became KPI of the business that they give investment stub. Impact investment is different from the Venture Capital (VC) JSE usually more inclined to achieve business objectives, namely profit .
The difference with social business model of Yunus (See chart), the impact of investment has a market rate of return less the same with. As for the model Yunus, the market rate of return it is greater equal to and the process is relatively long. Therefore, so-called patient funds .
Impact Investment
In the United States, Gilded Rogue Enterprises , being one example of an investment company that carries the impact of investment of this. One time, there was a farm and factory on the outskirts of the US threatened closures due to urbanization trends. Formerly, the factory and the farm was able to be a source of life of people in the surrounding villages.
Since urbanization arrived, young people prefer to go to work to the city. In fact, the latest generation of factories and farms that did not want to take care of as more tempted to go to the city. That's where Gilded come to buy most factories and farms and back to operate it.
Interestingly, Gilded finally implement a cooperative system in which many people finally feel they have the company. Companies that want to shut it finally re-empowering life and economy in the vicinity. Gilded managed to make investments that managed to produce neighborhood economy .
IMPACT INVESTMENT : US NO GILDED, INDONESIA NO PATAMAR
In Indonesia, one of the investment companies that also invested with a model like-it is Patamar Capital was previously known Unitus Impact. Patamar Capital is based in Silicon Valley and cares about fundraising for Livelihood Impact Fund by investing billions of rupiah. These funds specifically to fund companies that have a social impact - particularly in Southeast Asia and India.
However, Patamar not just focus on the business of technology-based startups. The company is also targeting commercial companies are carrying the mission of social impact - particularly in improving the quality of life of the poor.
Meanwhile, businesses pilot approaching the concept of the business, among others Toraja Melo, Javara, Burgreens, and Kakoa. Toraja Melo not a business that simply pursuing profits from products typical Toraja weaving. Toraja Melo also designed its business to social impact , namely changing the social conditions in this case women's empowerment in line with the presentation Laina Greene in the ASEAN Marketing Summit 2017 some time ago.
Founder Toraja Melo believes, through economic empowerment, women Toraja able to improve the welfare of the family. This empowerment enables women to carry their rights - in addition to be able to reduce poverty there.
PT Kampung wisdom Indonesia or JAVARA carry the same spirit. The company was inspired by biodiversity and has now been embraced around 500 thousand farmers from Sabang to Merauke.
JAVARA said she has worked with more than 50,000 farmers and food artisans in 2000, selling over 600 food products organic community based biodiversity using the ethics and principles.
IMPACT INVESTMENT AS POVERTY ALLEVIATION
Rightly so, one of the properties of impact investment is Poverty Alleviation alias poverty reduction. It also includes the establishment of financial inclusion or where the financial inclusion of the poor are able to access financial services.
Of glasses Marketing 3.0 - marketing orientation on values and human spirit - which do impact the investment is called the investor 3.0. Investors not only has the business insight alone, but also insight to improve the quality of life of marginalized communities as well as insight into saving the environment. So, not just profit achieved, but also the good of the people and the planet .
In the end, do impact investment is an option. Are you willing to invest the excess funds for a better life or simply looking for profit? Impact investment is the new kind of investment!