Social Impact Investing - Can it Help the Bottom of the Pyramid?

credit: Wikimedia Commons

Barriers exist in providing goods and services to the poorest populations. Low profit margins discourage the private sector from pursuing these markets. This leads to the majority of services being channeled through government.

However, opportunities do exist for the private sector which has great knowledge and resources. The volume of available capital encourages serving bottom-of-the-market populations. Through social impact investment companies can dedicate a portion of their capital to positively impact these populations.

Key considerations for successful efforts are described in the article. When companies align social and financial goals, they can focus on technologies that are profitable and socially beneficial. Business models that provide less expensive versions of services are also key. And ensuring that the company's workforce can innovate and is interested in solving the problems of bottom-of-the-pyramid consumers. Focusing on companies that have achieved these goals can provide a model and incentive for others.

Read the Entire Article

A customized collection of grant news from foundations and the federal government from around the Web.

How's Your Community Doing?
Check Out it's
Community Vital Signs

Philanthropic Follies

The Wall Street Journal profiles the new book \"The Good Rich and What They Cost Us.\" According to the reviewer, the book, which covers over two centuries of American philanthropy, posits that...more

Financial Aid Information Session Hosted by Kalamazoo Community Foundation
Foundation: Kalamazoo Community Foundation

The Wall Street Journal profiles the new book \"The Good Rich and What They Cost Us.\" According to the reviewer, the book, which covers over two centuries of American philanthropy, posits that...more

As Asian-American Population Grows So Does Philanthropy in the Communities
Foundation: American India Foundation, Korean American Community Foundation

The Chronicle of Philanthropy highlights a New York Times article focusing on the growth of Asian American philanthropy. Asian-Americans who have built fortunes in finance and technology are...more

Mary Kay Foundation Awards Grants

Waypoint Madge Phillips Center Shelter has recently received a $20,000 grant from The Mary Kay Foundation in observation of National Domestic Violence Awareness Month in October. According to Anne...more

Paulding Education Foundation Awards $7,500

Paulding Education Foundation has recently awarded $7,500 to Paulding schools as a result of the foundation\'s School Grant Program. Recipients include South Paulding High School, Austin Middle...more

Make-A-Wish Foundation Crapo Park Walk Fundraiser

The Make-A-Wish Foundation will be holding its big fall fundraiser, a walk around Crapo Park in Burlington to help grant wishes of children with life-threatening illnesses, raising on average $8,600...more