This report has been provided by The Impact Initiative and can be accessed here.
Impact investment can shift our understanding of finance as the fundamental driver of complex problems and a tool to solve these problems. However, a lack of understanding about enterprises' need for impact investment amongst private and public sector funders is creating barriers to accessing capital. Recommendations to improve the access to impact investment for enterprises include:
Investors need to integrate impact investments into their portfolio to improve the lack of "impact first" capital in NZ.
Philanthropic organisations can accelerate development of the social enterprise sector by de-risking impact investments.
Government needs to create enabling environment for private led impact investing including supporting the National Advisory Board.
Government to consider an impact investment fund, tax and Kiwisaver incentives for private lead impact investing and effectiveness of social impact bonds.
Review fiduciary obligations of community trusts and foundations, and legal structures for social enterprises.
