INSEAD Knowledge: The Social Stock Exchange

A social stock exchange? As a concept, it sounds like a contradiction in terms.
Social enterprises serve needs that commercial enterprises, charities and governments are failing to meet, in areas from housing and education to healthcare and rural development. While stock exchanges, traditionally, are temples of profit, most social enterprises count themselves lucky if they do not make a loss.

As profit is not their prime motive, it’s hard for them to obtain funding, other than from charitable donations, to maintain and expand their activities. “If you don’t find sound private investors,” says Brenninkmeijer, “it is very complicated to raise capital.”