This story originally appeared in our June 30th, 2011 e-magazine. Click here to download the pdf e-magazine.

While most of the social enterprise and impact investing spotlight remains on Africa and South Asia, Latin America is making its own strides to develop a solid foundation in the industry.

While the term social enterprise seems to be picking up steam worldwide, much of the focus remains on Africa and South Asia.

There are many reasons for that, says Mark Hand, an investment analyst with First Light at Grey Ghost Ventures. The language barrier, cultural and political differences all play a part in why Latin America has been slower to attract attention than others. “What we’ve seen in the impact investing space, especially the kind of venture funding circles that we swirl around in, is that people overlook Latin America,” he said.

William Portilla, a senior loan officer with Root Capital – which has operations in Latin America and Africa – says that developed countries have a “stronger strategic political interest” in Africa and South Asia than they do in Latin America.

“The money that is most commercially minded is most drawn to India. The money that is most charity minded is most drawn to Africa,” he said. “In that spectrum, that leaves few people that are operating in Latin America.” » Continue reading “Latin America’s socents: poised for flight”

This story originally appeared in our June 2nd, 2011 e-magazine. Click here to subscribe.

Aida Patricia took her first microfinance loan of $100 when she was just 20 years old. Fifteen years later, she employs 45 people at her clothing company.

In 1996, Aida Patricia, then a young woman of 20, turned to a small sewing machine in a corner of the house her in-laws owned. To earn extra money to support her family, Patricia began a small clothing enterprise she called Oscaritos. Banks wouldn’t loan her money because she had no assets with which to secure her loan.

A microfinance institution (MFI) based in Masaya, Nicaragua, gave Patricia a loan of 2,000 córdobas—the equivalent of $100. She invested the money in fabrics and materials, and continued to take loans from MFIs to grow her business.

“These loans also allowed us to obtain loans from other institutions, giving us the opportunity to diversify our financial risks,” Patricia recalls. » Continue reading “Making Microfinance Work”

This story originally appeared in our May 5, 2011 e-magazine. Click here to subscribe.

Ben Powell, the Founder and Managing Partner of Agora Partnerships, an impact investment firm that works with early stage companies, reveals how to get the attention of impact investors.

What do you look for in an investee?

The number one thing that we look for is someone who, in our view, is an impact entrepreneur. We really look to see if the entrepreneurs truly are trying to create shared value with their businesses. We are looking at a set of values and attitudes about the role of business in society and a real commitment to creating a company that will very deliberately solve social and environmental problems while also generating a profit that can be used to grow the company and to reward investors. » Continue reading “What Investors Want”