Which 10 industries are experiencing rapid growth in impact investing and social entrepreneurship?
1. Clean Energy: Renewable energy and energy efficiency initiatives are rapidly growing sectors that address the problem of climate change and promote sustainable living. Impact investors are keen to invest in innovations in energy production systems and other technologies that can reduce carbon footprints.
2. Agriculture: Agriculture remains a key player in impact investing due to the issue of food security and resource efficiency. Investments in organic and sustainable farming practices can help promote fair trade and alleviate poverty amongst small-scale farmers.
3. Healthcare: Impact investors are also investing in medical technologies and drugs that can help improve the health outcomes of the wider communities. The use of innovative digital health platforms for patient care management and delivery of telehealth services are gaining fast traction in this sector.
4. Financial Inclusion: Impact investors are keen to empower financially disadvantaged communities through making finance accessible to them. Investment in social entrepreneurs creating inclusive financial products and services that can help drive financial inclusion and mitigate poverty is emerging as a major trend.
5. Education: Impact investing in the education sector is rising. In particular, social enterprises providing technology-driven solutions in education are making an impact in access to high-quality education across different communities.
6. Sustainable Tourism: The sustainable tourism sector is now a rapidly growing sector for impact investors. Investors are seeking environmentally and culturally responsible tourism business models that promote community development and conservation.
7. Clean Water and Sanitation: One of the major social issues facing global societies is the lack of access to clean water and sanitation. Impact investors are focused on innovative solutions that can provide clean water to communities in need.
8. Waste Management: Management of solid waste is a significant social and environmental issue. Sustainable waste management solutions will help eliminate waste pollution while empowering economically disadvantaged communities.
9. Affordable Housing: Affordable housing remains a significant challenge in many communities around the world. Social enterprise investments providing affordable housing solutions can help mitigate homelessness and housing shortages in urban areas.
10. Microfinance: Impact investing in microfinance has been around for decades. Microfinance institutions (MFIs) provide small-scale loans to entrepreneurs who may not have access to formal lending channels. Impact investors invest in MFIs to help reduce poverty and support the development of small businesses.