Tagimpact investing

How to Build Financially Sustainable Social Enterprises

Tra­di­tional busi­nesses find a path to finan­cial sus­tain­abil­ity by grow­ing their rev­enue, improv­ing their gross and oper­at­ing mar­gins, increas­ing their free cash flow, effi­ciently man­ag­ing both cap­i­tal expen­di­tures and work­ing cap­i­tal, and build­ing their asset base. Achiev­ing these finan­cial per­for­mance indi­ca­tors typ­i­cally result in easy access to financ­ing and higher stock prices.

Teaching Impact Investing in High Performance Social Enterprises

The idea of “impact investing” is gaining a great deal of attention these days, including in undergraduate education. While many institutions have offered classes in strategic philanthropy in recent years, and of course in traditional business investing for many, we have focused our efforts at SEI on developing educational programs for a new third way of investing. This new investment discipline involves socially minded investors providing capital to both for profit and non-profit enterprises that are committed to efficiently addressing social problems in both a sustainable and innovative way.