A new white paper penned by Credit Suisse and CSR Asia explores the potential that exists for strategic philanthropists in stimulating entrepreneurship and small business development in developing countries.
Entitled, "Strategic Philanthropy: Unlocking Entrepreneurial Potential," the paper outlines how ultra-high net worth individuals can make philanthropic activities more strategic and sustainable by engaging in social entrepreneurship and small business development and how philanthropists can use their wealth and skills to support emerging markets. It demonstrates with case studies how UHNWIs have been successful at pursuing their philanthropic endeavors.
Strategic philanthropists are in a unique position to support entrepreneurial development, the white paper maintains. “Support can be aimed at providing access to affordable capital; bringing business knowledge and experience; to engage marginalized groups in entrepreneurial opportunities and in the stimulation of entrepreneurial education at all levels.”
The white paper describes venture philanthropy as a promising tool to support enterprise solutions while generating both financial returns and social or environmental returns. “Venture philanthropy investments have a proven track record of nurturing profitable businesses, with measurable effects on poverty reduction and other social and environmental challenges.”
The paper also describes the impact value chain and impact measurement tools that help to identify positive and negative changes in the community resulting from investments.