Today's socio-environmental challenges require innovative, scalable, and financially sustainable solutions. It is in this context that impact business, enterprises capable of uniting purpose and results, proving that positive impact and profit can go together.
What are impact businesses?
According to National Strategy for Investments and Impact Businesses – Enimpacto (Decree 9.977/19), one impact business is an enterprise that combines positive socio-environmental impact with sustainable financial return.
What sets them apart is the intentionality: the mission and main objective need to be focused on generate socio-environmental impact through its core activity, whether in the product, service or form of operation.
These businesses operate like traditional companies — generating their own revenue from the sale of products and/or services, in sectors such as education, health, nutrition and technology — but they have a socio-environmental cause as primary motivation. They are business solutions to real problems, which show that there is no conflict between social and economic ambition.
Main characteristics of an impact business
- Intentionality in solving socio-environmental problems – clearly defined purpose, often aligned with 17 Sustainable Development Goals (SDGs) of the UN;
- Impact solution as the main activity – impact generation and financial sustainability come from the same activity, it is not a side project or a one-off social responsibility action;
- Operation by market logic – business model aimed at generating its own revenue, with the possibility of receiving subsidies or non-refundable investments in the initial stages;
- Commitment to impact monitoring – the impact is measured and monitored, with clear metrics, to ensure that socio-environmental objectives are achieved.
The importance of impact businesses
You impact business play an essential role in building a fairer and more balanced future, as they act at the intersection of the economic, social and environmental pillars of sustainable developmentBy generating revenue and, at the same time, solving socio-environmental problems, they contribute to reducing inequalities, promoting inclusion, and protecting the environment.
With scalable business models and constant measurement of results, these companies accelerate the achievement of Sustainable Development Goals (SDGs) of the UN and strengthen the transition to an economy capable of generating prosperity for people and the planet, without compromising future generations.
How to boost impact businesses
The impact investing is one of the main ways to boost businesses that combine profit and purpose. It directs resources to ventures that offer products and services capable of solving socio-environmental problems, guaranteeing the investor financial returns and impact measurement.
In addition to fostering innovation, the impact investing enables these solutions to scale and reach more people, increasing their positive impact and helping to address the great challenges of our time.
Sitawi’s Positive Impact Crowdlending Platform
In Brazil, an innovative example of promoting impact businesses is Crowdlending Platform for Positive Impact from the Sitawi Finanças do Bem.
The Platform connects engaged investors The businesses with positive socio-environmental impact, allowing anyone to invest from R$10 and receive your capital back with returns compatible with other investments.
Thus, those who invest directly contribute to transforming the reality of entrepreneurs who work in areas such as clean energy, sustainable agriculture, social inclusion, education and health.
Since its creation, the platform has mobilized more than R$1,400,000 in loans for businesses with socio-environmental impact, democratizing access to capital and strengthening the impact ecosystem in the country.
Want to invest with purpose?
Sign up to the Sitawi Platform and be notified as soon as new opportunities open up.
