“There is a great deal of noise on the stairs but nobody comes into the room.”
– John F. Kennedy
President Kennedy was referencing a Chinese proverb when he said that, making the point that it was easy to talk about problems, but much more difficult to fix them.
Kyle Zimmer, First Book’s president and CEO, is in China herself this week, addressing the World Economic Forum’s ‘Annual Meeting of the New Champions’ in Tianjin, the foremost gathering of business and nonprofit leaders in Asia. She’s there to talk about subjects near and dear to our hearts – social entrepreneurship and social impact investing.
Social entrepreneurship is a new way of doing business, a hybrid of traditional nonprofits and for-profit companies that uses market forces to create social change. (Click here to read a recent blog post by Kyle where she explains what social entrepreneurship is and how it can change the world.)
Social impact investing is a related concept; the idea of channeling investment toward mission-driven businesses and entrepreneurial nonprofits that are working to solve social problems.
Fundamentally there are holes on both the investor side and the social entrepreneur’s side of the aisle.
On the investor side, there is far more talk than there is traction. Certainly, a few funds have been established that focus on social investment, but it is difficult to see these as more than traditional charity, dressed up as investment.
Creative new designs in the financial category to address this need have been discussed for years, but few have made it to market. This lack of significant innovation by the investment community has been a major roadblock to the expansion of the social sector. Enterprises reach a certain level of growth and then choke from the lack of capital.
Like any new idea, there’s a lot of work to be done. But Kyle is hopeful about the future, saying: “There we were all in a room at the World Economic Forum Annual Meeting of the New Champions – financial institutions and representatives of the social sector — talking about the challenges, which is a great step toward a cure.”
At First Book, we’re working towards a new kind of solution to an old and intractable problem – how to ensure that the 30 million kids in the United States (and soon, around the globe) living in low-income families get the books and resources they need to succeed. Click here to learn some ways you can get involved.