Which Criteria Matter When Impact Investors Screen Social Enterprises?

  • 1 January 2021
  • Case Study
  • Publisher : Journal of Corporate Finance
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This study investigates the criteria impact investors prioritize when screening social enterprises. Using experimental conjoint analysis with 179 impact investors, it identifies the authenticity of the founding team, the importance of the societal problem, and the venture’s financial sustainability as the three most crucial factors. The research also reveals differences across investor types (donors, equity, and debt investors), contributing to understanding investment decisions in the nascent impact investing market and offering practical implications for both investors and social enterprises.

Author(s) :

Joern H.Block, Mirko Hirschmann, Christian Fischa

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Innovative Finance/ Blended Finance

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