Session Theme: Impact Investing and Finance for Social Entrepreneurs
Session Time: 12:30~14:30, Nov. 30
“How do Social Entrepreneurs Draw On Social Investments?”
In the markets of developing countries in Asia, there are exchanges of experience and information on social capital: or funds that invest or provide loans to social entrepreneurs and SGB in order to create social benefits (impact) and reduce poverty.
Focusing on this trend, the last day and the last session of ASES2010, Nov. 30th, the last topic was “Impact Investing & Finance for Social Entrepreneurs”. The Session addressed how social capital and funds behave and discussed ways to approach social investors. They also focused on development of social capital, funds, and other financial mediation organizations in Korea, which financially support development of social enterprises for social innovation.
In this session, Young-sup Yoon, chief of Sustainable Growth Research Institute in Korea University, was the moderator, and Sweta Pokharel, investment expert in E+Co Asia Office, presented on ‘Impact Investing for Social Ventures in Clean Technology: Potential and Challenges.’
Experienced in managing investments from Cambodia and Nepal as an investment expert for E+Co, Asia Office, she introduced ‘SME-RE’, the Cambodian Company that develops biomass energy projects, which is considered to be one of the great successes of ‘E+Co’, (an impact investing company that provide business investment services and capital to African, Asian, and Latin American clean energy businesses).
She described ‘SME-RE’, established to provide the latest clean energy service to SGBs in rural areas and communities where usage of energy is limited and production of electricity within is expensive. It has now provided biomass gasification units to diverse regional industries to help reduce the usage of diesel by about 65%, which before took up a large part of operating costs.
Chul-Young Lee, Executive Director of Social Enterprise Network (SEN), said that in the long-run, social enterprises need to decrease their dependence on direct investments from the government; and exploit share investments from other companies and donations from private foundations and individuals.
“It is important for social enterprises to attract investments from outside through internal innovation.” said Lee. “Abandonment of existing values and innovation towards new values are the keywords to develop social enterprises.”
Next was Richard Roque, from Hong Kong, Executive Director of SA Capital, HK, who spoke on ‘Impact Investing: Experiences and Cases.’ In order to increase social entrepreneurs’ understanding of impact investing, he presented impact investors’ major transaction variables and major criteria in evaluating an enterprise before making investment decision. He also talked about key trade conditions and exit strategies when social entrepreneurs negotiate with impact investors.
By presenting the case of ‘Betterworldbook.com’ which is a social enterprise that operates with a mission to provide the ability to read and write throughout the world, he presented with vivid experiences of how SA Capital Ltd. achieved sustainable management in the areas of finance, as well as society, and the environment.
