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Symposium 2009

Solution for The New Wave of Social Entrepreneurship

The Challenge

In the aftermath of the collapse of the western financial system, many observers agree that neither unfettered financial markets nor invasive regulation are able to ensure that financial and busines ...

In the aftermath of the collapse of the western financial system, many observers agree that neither unfettered financial markets nor invasive regulation are able to ensure that financial and business leaders will necessarily act in the public interest.

Require foundations to invest at least 10% of their assets in social investments.

The current organization and regulation of most private foundations in developed countries is such that they are required to donate or grant only somewhere between 3% and 6% of their assets in any given year to charities. The other 94% to 97% of their assets are generally invested in traditional investment instruments that have no social purpose.

An obvious source of significant new capital that governments could create for social investment (without having to put the money up themselves) would be to require that foundations invest at least 10% of their assets in social investments. This requirement alone would create a capital pool of tens of billions of dollars, which could be dedicated to affordable housing, microfinance, social enterprise, green energy, or other socially beneficial projects.

    Related Solutions

    Solution
    Symposium 2009

    “Reverse engineer” social entrepreneurship by giving conventional commercial enterprises incentives to become social entrepreneurs.

    “Reverse engineer” social entrepreneurship by giving conventional commercial enterprises incentives to become social entrepreneurs.

    “Reverse engineer” social entrepreneurship by giving conventional commercial enterprises incentives to become social entrepreneurs.

    Polity, Business
    Solution
    Symposium 2009

    Expand debt advisory services, along the lines of those available in developed countries, for microfinance customers and investors to developing countries.

    Expand debt advisory services, along the lines of those available in developed countries, for microfinance customers and investors to developing countries.

    Expand debt advisory services, along the lines of those available in developed countries, for microfinance customers and investors to developing countries.

    Polity, Business
    Solution
    Symposium 2009

    Promote rural hand manufacturing in rural production centers to reduce poverty sustainably by increasing employment.

    Promote rural hand manufacturing in rural production centers to reduce poverty sustainably by increasing employment.

    Promote rural hand manufacturing in rural production centers to reduce poverty sustainably by increasing employment.

    Business
    Solution
    Symposium 2009

    Provide grants for promoting research on the factors that accelerate the development of social entrepreneurship.

    Provide grants for promoting research on the factors that accelerate the development of social entrepreneurship.

    Provide grants for promoting research on the factors that accelerate the development of social entrepreneurship.

    Polity, Academia, Business, Civil Society