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Social Innovation Awards Attract Bright Ideas in Sustainable Finance
Johanna Hoopes | Monday 1st February 2010
 In the wake of a global financial crisis, people are weary of the ability of the current financial system to protect investors, workers, and families. We are in dire need of companies, organizations and institutions that promote distributive wealth generation and create sustainable value for our economy. This year's Social Innovation Award nominees show the power of finance as a collaborative tool, which provides healthy liquidity and empowers businesses to embrace smart, sustainable growth strategies.These innovative organizations do not claim to hold the magical solution to global poverty. Rather, they facilitate investment in responsible businesses or act as incubators for ideas that need funding to take their solutions to scale. Sparkseed mentors young social entrepreneurs and matches them with investment bankers to develop financial models and ensure their sustainability. Realizing that students have developed some of the most groundbreaking endeavors of our era, Sparkseed supports new ideas via training and funding. LIFE/Lanx Local Investment Project is working to build much needed financial infrastructure to make socially responsible investing feasible on a local level. The organization plans to establish local stock exchanges across the country to fund enterprises that are too small for national listing. EDCO Ventures gives local businesses in low income areas and distressed regions the tools to create jobs and generate wealth. By increasing their "cultural capital" or business skills, EDCO inspires companies to continue to improve their operations as they grow, thereby furthering their impact. All of these innovative organizations realize that investment in small enterprises will perpetuate more widespread future returns. Other organizations provide incentives for companies and their customers to go green. NativeEnergy's Help Build carbon finance project allows customers to contribute to the construction of clean energy projects by buying a share of their carbon offsets. This project not only benefits clean construction but also involves stakeholders and clients in supporting infrastructure that will serve their needs. Chartis, Carbon Capture and Storage (CCS), is the only insurance policy on the list of finance finalists. By addressing the environmental risks associated with carbon capture, the insurance encourages industry to pursue environmentally friendly waste reduction strategies. Finally, companies like Nokia, Verizon, and Western Union are hopping on the socially responsible bandwagon by giving low-income or disenfranchised customers access to technology and financial services. In developing economies, lack of financing and banking services is one of the greatest challenges to wealth accumulation. Relying on physical in-kind transactions or interactions is costly. By making communications and payments transfers more convenient, these companies are making valuable contributions to global economic development. This year's nominees connect people and create change using innovative financial mechanisms. They work with big businesses and small entrepreneurs, public and private partners across the globe. These businesses do not provide donations or aid. Their projects focus incentivizing better business and empowering customers to take part in the process. Perhaps most importantly, they all rigorously monitor and evaluate the financial and social value of their investments. Just a few of the worthy nominees are named above. Check them out for yourself and be sure to vote for your favorites. |
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Jenny Gottstein 3 February 2010 I think it's important to point out the psychological effects of this economy on young adults. Historically, this demographic has been the biggest risk-takers and most fearless innovators. Young people tend to embrace their instinct, follow their passions, and dive headfirst into the unknown. But these days, with a dearth of job opportunities, many young adults (potential leaders, no less!) are keeping their head down and holding their breath. This behavior does not spark innovation, does not encourage creative problem solving. So thank you, Just Means, for providing a space where social entrepreneurs can regain their footing and dare to think big.
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Samantha Given-Dennis 2 February 2010 To add on to Mike's comment about Sparkseed, I suggest those who are interested check out our Social Innovation Competition platform: http://jm.ly/jAT9Qf On the competition page, you will be able to view the profiles some of our applicants have created for their social ventures. Applications for this years 6-month incubation program close on February 7-- take a look at the potential Sparkseed is about to unleash on the world!
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Mike Del Ponte 1 February 2010 Great article, Johanna! It's true that there are a number of inspiring companies creating innovative funding models. At Sparkseed, we're proud to use a venture capital investments to support young social entrepreneurs. We combine funding with mentoring, training, pro-bono services, and connections that help our innovators scale their socially innovative ideas.
You can read Sparkseed's Social Innovation Awards application at http://jm.ly/JCBBN0 Make sure to vote! |
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Johanna Hoopes Is blogging |
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