...4/9/2014 Funding Social Ventures © Dr Prabha Bhola, RMSoEE, IIT Kharagpur Traditional Sources of Funding • • • • • • Grants Fellowships Crowd-funding / Online platforms Angels Venture Capitalists Loan Providers 1 4/9/2014 Challenges • Beneficiaries of social enterprise may not pay for it directly hindering optimization of business model • In social capital market, enterprise demands funds to move beyond the startup phase • For collaborative activities benefits cannot be completely captured by social enterprise • Funding agencies may not take risk to support new projects in lieu of existing programs • Time horizon may not be aligned with that of potential funders • Return expectations may be misaligned with the income generation ability of social enterprise • Hybrid structures can raise issues among the public and private sector players • Social entrepreneurs cannot rely solely on market signals & pricing to indicate to potential investors in achieving mission related impact Capital Needs of the Social Enterprise The following questions about financial drivers can direct the social entrepreneurs to the appropriate capital sources: • What opportunities & challenges exist to monetize the financial, social & environmental value (triple bottom line) • Is financial sustainability viable given mission of social enterprise? Does it require specific amount of startup capital to build operational capacity before becoming financially self sustaining? • What are the...
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...SOCIALLY RESPONSIBLE INVESTING: THE MATURING OF FINANCIAL ANALYSIS Brenda Plant Can one get rich by being responsible? Yes, one can: “To look beyond the investment bottom line does not imply forgetting profits,” says Brenda Plant. To help shed light on this issue, she reviews the state of socially responsible investment in Canada, the evidence regarding its economic performance and the strategies available to implement it. She observes that the financial community remains skeptical and ill-prepared to provide that type of service and that, overall, Canada is lagging behind. To keep pace with other jurisdictions world wide, she recommends that Canada amalgamate the multitude of securities regulators into a single national body. Peut-on à la fois s’enrichir et être socialement responsable ? Oui, croit Brenda Plant : « On peut voir au-delà du rendement d’un placement sans nécessairement renoncer aux profits », dit-elle. Pour éclairer la question, elle analyse l’état des investissements socialement responsables au Canada, leur rendement et les stratégies favorisant leur implantation. Les milieux financiers restent sceptiques à leur égard et mal préparés pour offrir ce service, observe-t-elle, et, d'une manière générale, le Canada accuse en la matière du retard par rapport à d’autres pays. Pour rattraper ce retard, elle propose du fusionner en un seul organisme national la multitude des organismes de réglementation du commerce des valeurs mobilières. T he recent crisis in confidence...
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...Essay “The challenge of sustainability for the financial sector” Student Name: Word: 902 Date: 12th February, 2012 “The challenge of sustainability for the financial sector” Sustainability for the financial sector can be explained as environmental and social impacts of the financial sector. Approach of sustainability for the financial sectors includes the engagement of financial sectors with environmental, social and financial opportunities and risk associated with it by complying with all related rules, regulations and ethical standards. The sustainability for the financial sector could challenge the core business of the financial sector. The financial sectors have now realized that the practice of sustainability have the positive impact as it could save cost, increase the overall earnings, decrease the risk factors, and also could help to develop human capital for the financial service providers. On the other hand ignorance of the sustainability issue could harm their reputation. - Gerster Consulting (February, 2011) Many scientific communities have argued to focus on the threat for human beings and the Earth due to running ecological system of earth and the main reason behind this is human activity. Our current international economy and financial sectors need some changes like switching to low carbon products and services etc. Currently 3 to 4 oC climate is now a minimum or acceptable level for healthy and safe human life. -International Climate Conference...
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...main development targets in developing countries, such as urbanization, industrialization, export promotion, equitable income distribution, and sustainable economic development. Late developing countries can benefit from previous development experience provided they choose the right model1. However, the relationship between infrastructure and economic growth is still frequently debated. This paper will examine the experience of Korea and Japan in infrastructure development for economic growth to acquire some valuable lessons that infrastructure development contributes to economic development in developing countries. 1. Introduction The lack of infrastructure is hindering the economic growth in many developing countries2. Infrastructure investment has the effects of contributing to increase the productivity and it is expected to contribute to future economic growth in developing countries where infrastructure is still insufficient. Therefore, infrastructure development is one of the most integral parts of the public policies in developing countries. Supporting infrastructure development in developing countries by advanced countries is extremely important field. This can be inferred from the fact that many international organizations such as World Bank and OECD are actively promoting the improvement of infrastructure by providing various support programs to developing countries. However, the precise relationship between infrastructure and...
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...New investment incentives in Turkey The Turkish Minister of Economy truly excited prospective investors in Turkey. Not only were details regarding the New Investment Incentives Program announced, but also additional news about a second incentive scheme was provided. Further, the Turkish Minister of Industry announced yet another set of incentives, aimed at attracting investors on technology start-ups. In the near future there will furthermore be a new set of incentives introduced, to the benefit of the Media, Cinema and Entertainment sectors and in order to attract foreign production companies. The introduction of a new investment incentives program every couple of years is a rather common practice in Turkey. This time however, the amendments are different than usual in that they offer a substantial number of new features. The New Investment Incentives Program (“New Program”) is very comprehensive and unlike the former ones, it goes beyond a mere change of rates and dates. For example, the New Program expands the periods and coverage areas of the incentives. The New Program also introduces a fourth ‘pillar’ to the current program, namely incentives for “strategic investments”, which investment incentives categorized by regions, sectors, size and the general investment incentives, also strategic investments are incentivized. The incentive scheme aims for, and will no doubt help to substantially decrease the current account deficit and inter-regional imbalances in Turkey. Also...
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...Identify and describe an appropriate set of investment objects and investment constraints for Dr. and Mrs. Mason, and prepare a comprehensive investment policy statement based on these investment objectives and constraints. Facts: - Dr. Mason will receive $1,000,000 payment on 6/7/2006 - Will receive royalties of $100,000 in first year and up to $500,000 in subsequent years - Will receive $55,000 in salary for 2006 through 2010. - Will receive $10,000 to $25,000 per year from 2006 to 2010 from speaking fees - Couple has no other savings - Retirement consists of Social Security and a small pension - Have 3 children, grown and married, the Mason’s desire to provide for education of grandchildren - Their wills divide their estate among the children and grandchildren - If the royalty payments are as projected, Mrs. Mason desires to setup a scholarship fund in name of Dr. Mason for engineering students - Priorities are: Provide for retirement, provide for education of grandchildren, setup scholarship fund Step 1 – Define investment objectives and constraints - Objectives: o Primary objective is to provide steady, sufficient retirement income to the Masons who are within 5 years of retirement. Since the Masons will receive Social Security and a small pension, this lowers the amount needed to provide for retirement o The second objective is to provide funds for education of grandchildren. o The third objective is to establish a scholarship fund for engineering...
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...About the Organization The Goldman Sachs Group, Inc. is an American multinational investment banking firm. It is considered to one of the premier investment banks in the world. Some of the business areas where it engages itself are : • Investment management • Securities • Investment banking • Various other financial services. By and large, the firm's major activities includes providing Mergers and Acquisitions advices, asset management, underwriting services and prime brokerage to its clients which can be either of the corporations, governments or individuals. Apart from this, they are also involved in market making and private equity deals, and is a primary dealer in the United States Treasury security market. History 1869 : Goldman...
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...to make their own investment decisions. But all these are changed now as individual investors have been replaced by institutional investors. This is also known as shareholding. Institutional investors play a very enviable role in corporate governance since the primary responsibility lies in side the board room, with the top management not with people and system imposed from outside. Looking at Board of Directors and investors, investors are seen as “sources of finance” or “partners in the enterprise”. This means that shareholders are seen as faceless, financial resource whose trust may be limited and need for checks and balances real? Or are they part of the business? Companies do take advice and guidance from their institutional shareholder in domestic and foreign business growth decisions (Stuffman 2008). This takes us to Hermes Fund Management, an institutional investment Corporation, which plays a strategic role in the activities of Total and Premier Oil. Total and Premier Oil has sought assistance from Hermes in managing business concern in Burma. This case study will show how trusted are Directors bearing in mind the interest or the shareholders. Shareholders are in turn given consideration and the respect for their membership in merit. Institutional Investors and Corporate Social Responsibility: As earlier stated, institutional investors are organizations which pool large sums of money and invest in securities, real properties and other investment...
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...Question 1 Using this case and the cultural dimensions explored in this chapter, discuss some of the way in which Australian and New Zealand are members of cultures very different from any other in Asia. Differences in the behavior of individuals and groups within an organisation in foreign subsidiaries can be a result of differences in societal or sociocultural variables of culture such as religion and language. These variables affect cultural dimensions. Which in turn affect an individual’s motivation and expectations in the work place. The predominant religion in Indonesia is Islam, while Australia is considered to be Mixed Christian and New Zealand Roman Catholic (Deresky 2014). Companies operating in Muslim countries or that have a large Muslim workforce are expected to make provisions for pray time and religious commitments such as Ramadan. In Australia and New Zealand Christianity employees typically have a number of day off during religious holidays, and the respect for people not wanting to work on Sundays (Deresky 2014). The official language in Indonesia is Bahasa Indonesia (Riza 2008), and in Australia and it is English (Australian Bureau of Statistics 2011) The GLOBE project investigates how cultural variables are related to organizational practices. GLOBE dimension scores of Australia and Indonesia are as follows. Assertiveness: Australia 4.28 Indonesia 3.86 Future orientation: Australia 4.09 Indonesia 3.86 Performance orientation: Australia 4.36 Indonesia...
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...valuable sources of energy to be exploited in order to meet the needs of broadcast on the country's economy . Also geographical location at the tip top of the Southeast Asia region , and has a long coastline , with many ports are favorable conditions for the development of oil and gas industry in Viet Nam. * The political and social environment The stability of politics is one of the elements which not only contributes to help Viet Nam persevere in the developing economy policy but also make our country step in the period of peace and prosperity. Being in the stable politics, oil and gas field has many favourable conditions in order to develop turnovers as well as innovate new technology or export oil and gas to international market. * The economic environment The task of renovating economy and politics has been deployed since 1986, which helped Viet Nam change from one of the poorest country in the world with GDP under 100 dollars to 2200 dollars at the end of 2015. The rate of the poor has declined sharply from 58% in 1993 to 5% in 2015. Moreover, the index of social security is improved significantly. The strategy of economic and social development over the period of 10 years, between 2011 and 2020 will focus on reforming structure, improving not only the environment, the human resources (especially human resources serving for the modern industry field), the democracy to stabilize macroeconomic but also the institution of economic market, investing the infrastructure...
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... we do not need to plan for retirement. Social Security will cover our needs when we are retired.” Thesis: Retirement is a time to break away from a hectic schedule and enjoy life. Retirement also can be a time of change and unexpected challenges. Planning for retirement with a solid financial investment is the key to providing financial security for life’s “golden years.” Relying solely on Social Security benefits to fund your retirement will place your financial security at risk. Organization: Order of importance. Purpose and audience: To show a solid financial plan for retirement is possible at any age, and the importance of not relying on Social Security as a sole means of taking care of day-to-day expenses. This essay is intended for an audience interested in learning how to make wise choices for their retirement, especially those who are planning to rely on Social Security benefits only. I. Relying solely on Social Security to fund for retirement may be a recipe for financial failure. A. Current research states the Social Security fund may be depleted of funds by the time most people are ready to retire in the next ten (10) years. B. Provide government statistics indicating current rate of payouts as opposed to program’s available funds. C. Current economic research showing of increasing cost of living expenses versus Social Security benefit increases, or lack thereof. II. Relying solely on Social Security benefits can have other far-reaching...
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...want to move. He is a widower, and he wants to bequeath the house and any remaining assets to his daughter. He has accumulated savings of $180,000, conservatively invested. The investments are yielding 9% interest. Mr. Road also has $12,000 in a savings account at 5% interest. He wants to keep the savings account intact for unexpected expenses or emergencies. Mr. Road’s basic living expenses now average about $1,500 per month, and he plans to spend $500 per month on travel and hobbies. To maintain this planned standard of living, he will have to rely on his investment portfolio. The interest from the portfolio is $16,200 per year (9% of $180,000), or $1,350 per month. Mr. Road will also receive $750 per month in Social Security payments for the rest of his life. These payments are indexed for inflation. That is, they will be automatically increased in proportion to changes in the consumer price index. Mr. Road’s main concern is with inflation. The inflation rate has been below 3% recently, but a 3% rate is unusually low by historical standards. His Social Security payments will increase with inflation, but the interest on his investment portfolio will not. Mr. Old Alfred Road Page 3 How much can Mr. Road spend each year? First let’s see what happens if we ignore inflation. 1. Account for Social Security income of $750 per month, or $9,000 annually. 2. Account for the income from the savings account. Because Mr. Road does not want to...
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...“Old” Alfred Road, age 70 is ready to retire and requires assessment of his fiscal status to do so. He is a widower that lives alone in a home that he has completely paid for that he wishes upon his death to bequeath to his daughter, together with any remaining assets. He wishes to preserve the savings account for unexpected expenses and emergencies, therefore he wishes to live off his investment interest which is expected to continue to grow at .09 and social security payments which will be indexed for inflation at .04. He expects to live an additional 20 years and would like his monthly spending to increase along with inflation therefore remain stable in today’s dollars. His balance sheet is as follows: Income: Initial Interest Per Month Per Year (one) Investments 180,000 .09 1,350 16,200 Savings 12,000 .05 50 600 Social Security 750 .04 750 9,000 Expenses: Per month Per Year (one) Assumed Rate of Inflation Basic Living Expenses 1500 18,000...
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...EXERCISE #2 Doing Business with Mongolia Pulvera, Michael V. ECONOMIC ENVIRONMENT Over the past 20 years, Mongolia has transformed into a vibrant multiparty democracy with a booming economy. Mongolia is at the threshold of a major transformation driven by the exploitation of its vast mineral resources and the share of mining in GDP today stands at 20 percent, twice the ratio of a decade ago. The Mongolian economy is facing challenges from persistent economic imbalances. Economic growth slowed to 3.0 percent in the first half of 2015 amid declining exports from a continued weakening of the commodity market and slower growth in the key export market of China. Mongolia’s annual GDP growth is expected to slow to 2.3 percent for all of 2015. Poverty has been on a downward trend over the past decade. Most recently, Mongolia’s poverty rate declined from 27.4 percent in 2012 to 21.6 percent in 2014, although many remain near the poverty line. Substantial progress has also been made in regard to several Millennium Development Goals (MDGs) at the national level, though significant regional disparities prevail. To ensure sustainable and inclusive growth, Mongolia will need to strengthen institutional capacity to manage public revenues efficiently and limit the effects of Dutch Disease; allocate its resources effectively among spending, investing, and saving; reduce poverty; and offer equal opportunities to all its citizens in urban and rural areas. It needs to do this...
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...sector and large private enterprises. Hugo Chavez nationalize key sectors of the economy such as energy, banking, telecommunications, electricity, oil companies, steel mills, factories food, milk production , cement industry, etc. .. facilitate the state-controlled oil company overseas has forced other companies to reorganize. May 01, 2007, Hugo Chavez vowed to nationalize telecom and largest energy - Compania Nacional Telefonos de Venezuela (CANTV) and EDC - in Venezuela by the U.S firm control. The government is also expanding access to rural areas, where it has seized the farm and turn them into cooperatives owned by the state ... Take profits as funding for social programs and long-term large. III. Question 2: The way Chavez's unilateral changes to contracts with foreign oil company have impacts upon future investment by foreigners in Venuezela. Oil industry is the economic sector contributed most to the Venezuelan economy, to one third of GDP, 80% of exports and over half the state budget. This country has a reserve of oil and gas major, and now, Venezuela is one of 10 major oil exporter in the world. Chavez has pushed out foreign companies and expand business organization and, the production of state companies. ‘However, the fluctuating oil prices on world markets as well as political crises, strikes are threatening sensitive economic sectors of Venezuela. Government of Venezuela is seeking...
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