There’s a new breed of change making organization in the developing world. Investors have begun to realize that positive social impact and market-rate (or better) returns are not mutually exclusive concepts. Though it is still in its fledgling stages, the social entrepreneurship sector in India shows tremendous potential to benefit the poor of the country, and today’s social investors are asking insightful questions about their giving. They want to know where their funding will do the most good, and whether or not the causes they are investing in are worthwhile. They need a true assessment of the local level impact of a social program before committing to it. What are the short-term possibilities? What is the potential down the road? Investors need to know which organizations will truly make things happen, which ones will be able to benefit from prior research, and which are positioned to implement best practices.

SMS - A Hand Up vs. a Handout

A prominent Hong Kong investor wanted to find a way to contribute funds and his own expertise in the area of recycling and waste management to benefit India’s poor. Dasra mapped the sector and came back with five potential social enterprises for this specific investment. The project that was eventually selected was in partnership with Stree Mukhi Sanghatana (SMS), a decades-old organization that organizes Mumbai’s waste pickers into cooperatives to consolidate and boost their incomes. The high-quality financial expertise, due diligence and project implementation provided by Dasra’s staff has turned the investor’s socially-conscious loan into a successful project and a fruitful investment, which will lead to a projected 25% increase in income for the beneficiaries.

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