The Funding Gap for Social Enterprises

In an article in the Stanford Social Innovation Review – The Funding Gap - the authors examine the difficulty that social enterprises face when raising money. These organizations are for-profit but are engaged in a social mission and often bring important innovation to their chosen issue. It is likely that these organizations will more effectively lead the way in creating real social change, but philanthropists and commercial investors have not yet fully embraced social enterprises; the former because of the for-profit status of social enterprises and the latter being unsure of businesses with a social goal. NPC sees organizations in this category as a highly strategic tool for issue investing and we are evaluating their inclusion in specialized impact funds.