To mark the 6th Convergences 2015 World Forum, an interview with Antonella Noya, Senior Policy Analyst (Social Innovation and Social Integration), OECD Centre for Entrepreneurship, SMEs and Local Development and Director of Convergences.
Impact investing first appeared in 2007 and now covers a market estimated at USD 100bn. This high-potential sector could see a fivefold increase by 2020, meaning it is important to structure it and put in place effective tools to match the supply and demand of capital. Antonella Noya tells us more.
Impact investing is different from other financial products as it combines the economic dimension and the social dimension. This form of investment aims to seek financial returns, but above all a social return. To achieve this, it focuses on solutions that meet a need and where the money invested can really produce a social impact.
While impact investing is developing all over the world, it must not only be regarded as a platform between those who receive an investment and those who provide it. It must be understood in a broader framework.
In an economy where public funds are lower and less available than before, impact investing must not be identified as a substitute for public action and interventions.
To avoid the risk of creaming-off – i.e. the risk of excluding publics who are in difficulty and precisely need to benefit from resources –, Antonella Noya points out that the State must continue to intervene with social programs that are not attractive for investors.
Impact investing must be perceived as being complementary to public action and not as a substitute for public action.