Original Source: Mckinsey
A mature impact economy would help power economic growth while solving global social and environmental challenges. Here’s what it will take to accelerate the impact economy’s development. In this article, which incorporates findings from our in-depth interviews with more than 100 investors, fund managers, social entrepreneurs, and other impact-economy stakeholders, we consider what it will take for the impact economy to reach maturity.
Since the term “impact investment” was introduced in 2007, the field of impact investing has grown and diversified in notable ways. Impact-fund managers have amassed record sums, continuing a trend that can be traced back at least five years. Funds have streamed money to impact investments from a variety of sources, and asset managers are making more investments outside the sectors that formerly attracted the lion’s share of capital. Researchers have engineered novel ways of tracking and reporting impact, giving investors greater confidence that their money is producing social benefits and helping entrepreneurs make more effective decisions about their strategies and business models.
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