Social Investing - What Matters from the Perspective of Social Enterprises?
Technische Universität München (TUM) - Center for Entrepreneurial and Financial Studies
University of Hamburg
March 1, 2013
This paper analyzes how social entrepreneurs evaluate social investors. Based on an experiment with 40 social entrepreneurs, we investigate how five attributes contribute to assessing the attractiveness of potential investors. The attributes cover supportive as well as oversight activities of social investors. In addition, we consider reputation of the investor as a potentially relevant factor for evaluating investment offers. We find that social entrepreneurs focus largely on reputation as well as supportive aspects when judging investor attractiveness. By splitting our sample in rather novice and rather experienced entrepreneurs, we show that the rank order of the criteria changes. While experienced entrepreneurs perceive reputation of the investor as most important, novice entrepreneurs rather focus on support offered by the investors.
Keywords: Social entrepreneurship, social investing, social venture capital
JEL Classification: M13, M14
Date posted: March 23, 2013