The $2 Trillion Impact: How Social Enterprises Are Making a Difference

Good day Curious Innovators,

Welcome to your weekly spark of curiosity! This newsletter shares practical insights on how curiosity can strengthen innovation and create positive impact.

If you’re new here, let me introduce myself. I’m Marie Roker-Jones, and I love talking about leveraging curiosity to develop new ideas while also understanding each other better.

Every week, I share curated selection of news, stories, and resources that will challenge you to ask bold questions, stay open-minded and curious about the world.

This week's topic is impact investing and social entrepreneurship. As a 2x social impact founder, this topic is close to my heart. One of my biggest challenges as a founder was finding the balance between doing good and earning revenue. Despite the challenges we faced, I would not trade the experience for anything. Now, I am working to support social impact founders to raise capital.

Did you know that there are 10 million social enterprises in the world, generating $2 trillion in annual revenues and creating over 200 million jobs?

Social enterprises are purpose-driven that businesses tackle society's greatest problems like poverty, access to quality healthcare, gender and racial equity, and climate change. They are the key drivers of social and environmental impact and align their missions with the UN's Sustainable Development Goals.

Despite the good work they are doing, social enterpises face many challenges, such as access to capital, talent, markets, and policy support.

Let's dive in!

Weekly Dose of Innovative Insights

Today's Big Question: How can impact investing and social entrepreneurship drive sustainable change in our world?

Now for the news.....

Energy spinoff GE Vernova may have a bigger carbon footprint than GE claims

It turns out that GE Vernova, the energy spinoff of GE, may not be as green as they claim to be. According to this article, GE Vernova may have a bigger carbon footprint than GE, because they use a different method to calculate their emissions. Greenwashing undermines the trustworthiness of corporate sustainability.

How can we verify and validate the environmental impact of corporations? How can we prevent them from greenwashing or shifting their emissions to other entities or regions? And most importantly, how can we hold them accountable and encourage them to adopt more sustainable practices?

Alt-capital and alt-ownership models for circular hygiene startup Vyld

Vyld, a circular hygiene company that makes reusable and compostable pads and tampons is not only solving a huge environmental and social problem, but they are also doing it in a very innovative and ethical way. They have raised $3.5 million in revenue-based financing, which means they don't have to give up equity or take on debt. They also plan to distribute ownership to their employees, customers, and suppliers, creating a more democratic and inclusive business model. Vyld is a great example of how startups can use alternative forms of capital and ownership to grow their impact and value. It also demonstrates why we need to fund more women-led companies.

Budderfly clinches up to $400 million in debt to help American businesses improve energy efficiency

This is a huge deal for Budderfly , a company that offers energy efficiency as a service. They have secured up to $400 million in debt financing from Generate Capital, a leading impact investor in sustainable infrastructure. Budderfly installs, maintains, and monitors energy-saving equipment and software for its clients, who pay only for the energy they use, and share the savings with Budderfly. This is a win-win situation for both parties and supports the transition to a low-carbon economy, by providing capital and solutions to businesses that want to improve their energy efficiency.

10 Million Enterprises Put People And Planet First

And guess what? Half of them are led by women. This report by the Schwab Foundation's Global Alliance for Social Entrepreneurship shows us the scale and scope of the social economy, and why we need to invest and support social enterprises. If you're not following Genesis Be , please check out her work. Her company is People First.

Social enterprises impacted more than 891 million lives over the past 25 years

According to a study by the British Council, social enterprises have impacted more than 891 million lives over the past 25 years, across 21 countries. And they could impact up to 1.5 billion lives by 2030, if they get enough support and recognition. The study urges governments, investors, corporations, and civil society to collaborate and create an enabling ecosystem for social enterprises, and to recognize their contribution to the Sustainable Development Goals.

Curiosity Challenges

Challenge #1: How can you support social enterprises in your community or industry?

Look for social enterprises near you or in your field of interest, and learn more about their missions, products, services, and impact. Explore ways you can support them such as becoming a customer, partner, investor, donor, volunteer, or advocate.

Challenge #2: How can you apply the principles of social entrepreneurship to your own work or life?

Think about a social or environmental problem that you care about, and brainstorm how you can use your skills, resources, and creativity to solve it. You can also explore how to incorporate social impact into your existing business or career.

Key Takeaway: Social enterprises are a powerful force for good, creating positive social and environmental impact while generating economic value. They need more investment and support to grow and sustain their impact.

Action Steps

Connect and Collaborate

Don't just observe from the sidelines; take action! Search for social enterprises in your community and see how you can lend a hand. Your skills could be a game-changer for these organizations.

Be a Conscious Consumer

Every time spend money, think of it creating a better world. Start by switching one or two of your regular purchases to products or services from social enterprises. Love coffee? Find a brand that's all about ethical sourcing and giving back to the communities. Need a new notebook or planner? Choose one made from sustainable materials by a company that supports educational initiatives. It's not just shopping; it's a statement of your values and a direct contribution to a more equitable and sustainable world.

We can all play a role in supporting and joining the social impact movement, by becoming more aware, curious, and engaged.

Share this newsletter with your friends or colleagues who might be interested in learning more about social enterprises and impact investing.

You can also invite them to subscribe to Curiosity Compass and join our online community.

Looking forward to sparking more curiosity next week,

Marie