More funding opportunities are available for enterprises if there are large scale impact investments.
Impact investing refers to investments "made into companies, organizations, and funds with the intention to generate a measurable, beneficial social or environmental impact alongside a financial return". Impact investments provide capital to address social and/or environmental issues.
Besides, impact investing catalyzes innovative new approaches to social, environmental and economic challenges, which proves instrumental in achieving the Sustainable Development Goals (SDGs), says a survey.
The survey report was presented while unveiling the Innovative Finance Toolkit titled "The Thriving Future of Impact Investing in Bangladesh" in the city ON Tuesday.
The survey was carried out among 100 investors and high officials of business firms.
The report was presented at a virtual programme organized by Roots of Impact, a German-based financial consultancy firm, and LightCastle Partners, a Bangladeshi business consultancy firm.
The event was organized in partnership with Biniyog Briddhi, Bangladesh Angels, SBK Tech Ventures, Startup Bangladesh Limited, and Venture Capital and Private Equity Association of Bangladesh (VCPEAB).
The survey was carried out for two months (March-April) this year.
In the survey, 30% respondents opined that increased impact investments provide more funding facilities for enterprises, while 27% said that it becomes easier to face social and environmental challenges if business is done with innovative and new approaches. 14% thought that there will be positive effect regarding achievement of SDGs in case of impact investments.
Toolkit was unveiled to help the investors better understand the potentials of impact investment, especially in Bangladesh. The Toolkit contained information ondifferent perspectives of investment in Bangladesh, positive effect of impact investments, funding guideline and different sources of funding of entrepreneurs.
Later, a discussion titled 'Effect and future potential of impact investment' was held.
Bijon Islam, Founder and CEO of LightCastle Partners, and maxim Cheng, programme manager of Roots of Impact, presented the keynote papers.
Bijon Islam also moderated the discussion.
Sonia Bashir Kabir, Founder and Chairman of SBK Tech Ventures; Nirjhor Rahman, Chief Executive Officer of Bangladesh Angels; Shawkat Hossain, General Secretary of VCPEAB; Bjoern Struewer, Founder and CEO of Roots of Impact; attended as panel discussants.
In his keynote paper, Bijon Islam mentioned three main challenges regarding impact enterprises. These are: knowledge gaps at both enterprise and investor level; absence of formal frameworks for measuring and reporting impact; impact enterprises' inability to scale and sustain.
Regarding impact investment, Bangladesh's position is the third in South Asia after India and Pakistan. So far, 830 million Dollars from Development Finance Institution (DFI) has been invested, while 120 million Dollars has been distributed from other impact investors, said Bijon Islam.
Maxim Cheng said, 500 billion Dollars has been invested in impact investment sector in the world market. Its amount will increase more in the future. It is a big opportunity for us.
About 80 people, including entrepreneurs, investors, business leaders and ecosystem builders attended the event.
