Impact investment has grown in the world between 2021 and 2022. In Europe alone, according to the EVPA (European Venture Philanthropy Association) and GSG (Global Steering Group) report (2022)1, investments reached 80.1 million euros, which shows an increase of 26% in contrast to the previous year.
However, it is still not enough for impact investments to help achieve the Sustainable Development Goals. It is necessary not only that investment grows, but that in other parts of the globe, such as developing countries like Peru, they are also encouraged to achieve sustainable and equitable growth.
What is impact investment?
Impact investment is one that is intended to generate a measurable effect on social and environmental development and, at the same time, one that generates a financial return. Although it is often confused with responsible investments, it differs from those because they pursue objectives through tangible improvements.
In this sense, this type of investment has a double objective: on the one hand, to generate economic returns; and, on the other, to contribute to solving a clearly defined social or environmental problem. A good definition of the problem is crucial, since in this way it is possible to establish measurable and demonstrable objectives.
Impact investments, as mentioned above, are linked to the Sustainable Development Goals of the 2030 agenda; given that, through these it is possible to invest in inclusive activities, as well as in sustainable infrastructure, through which inequalities are reduced and a change is generated that is felt in the societies in which these solutions have been proposed.
The Wiese Foundation promotes impact investment through the Entrepreneur Fund
The Wiese Foundation is an organization that, since 1960, the year in which it was created by Don Augusto Nicolás Wiese Eslava, has made different interventions and contributions of a philanthropic nature for the benefit of Peruvians.
Moreover, 4 years ago, the Wiese Foundation decided to include as part of its work a new permanent line of collaboration, linked to social innovation. As a result of that decision, in October 2018, it launched the Entrepreneur Fund, its program aimed at contributing to the development of the country, through the promotion of social entrepreneurship and impact investment.
The Entrepreneur Fund aims to become an impact investment platform that identifies and promotes small businesses that seek to contribute to solving a relevant social problem in the country, through the growth of their business activities. The first edition of the Entrepreneur Fund closed successfully last year, and its second edition has now been launched.
Participate in the second edition of the Entrepreneur Fund
The second edition of the Entrepreneur Fund is already underway, and your social enterprise could be one of the four beneficiaries of this program. To apply, your social enterprise must meet the following requirements:
- Being a private entity with legal status formally constituted in Peru, for profit or nonprofit.
- Reporting annual sales or income of at least S/. 25,000 in 2021 and/or 2022.
- Being a company oriented to self-sustainability through market mechanisms.
- Having the goal of contributing to the general well-being of a vulnerable community, incorporating some of its members into the business model, in the following ways: (a) offering them decent jobs, (b) as suppliers of goods or services, and/or (c) offering them access to products or services that improve their quality of life.
- Being in the early stages of operation, either in the validation stage or in the stage of preparation for scaling.
- Proving commercial traction; that is, potential for economic growth and social impact.
Do you consider that your social enterprise meets these conditions? Then it is eligible to be evaluated! The first stage of the second call for entries of the Entrepreneur Fund (Call for entries and Evaluation) was launched in mid-November of 2022 and the admission of applications will be until February 15, 2023. Don’t miss the opportunity to participate, and thus obtain the tools, knowledge and funding your social enterprise needs to keep growing! Learn more about the Second Edition of the Entrepreneur Fund here.
