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Can Impact Investing Avoid the Failures of Microfinance?

Harvard Business Review

Impact investors over the past decade largely focused on proving that impact investments could achieve a “market rate” or above return profile. Making something wildly profitable will of course attract the attention of financial markets, and thus increase the chances it will scale effectively. Lessons from Microfinance.

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Making Microfinance More Effective

Harvard Business Review

While meeting this challenge is a clear priority for policy makers and donors, it is also a major profit opportunity for commercial players who can solve market failures and create real value. Insurance is highly valuable to protect against shocks but is difficult to scale. Digital financial services let people help each other.

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Under Fire, Microfinance Faces Falling Out of Favor

Harvard Business Review

Microfinance has come under fire in the past 18 months, triggered in part by SKS Microfinance's IPO. Critics complain that the institutions supporting microfinance have become too greedy, and many are using this as an argument to deeply regulate or, even more, cut support to microfinance operations. I hope not.

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Funders Can Give More than Money

Harvard Business Review

At Opportunity International , where the focus is on providing loans, savings, insurance, and related training to clients in the world's poorest communities, our major donors like to see the work up close. We know that microfinance alone will not break the poverty cycle.

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Give Impact Investing Time and Space to Develop

Harvard Business Review

An estimated 250 funds are actively raising capital in a market that the Global Impact Investing Network estimates at $25 billion. We allowed microfinance and the venture capital industry the time and space to develop over a few decades. Impact investing has captured the world’s imagination. Social enterprise Venture capital'