Does impact investing remain a niche market in the future?
: Does impact investing remain a niche market in the future?

  • Vivian Voß (Student)

Student thesis: Master's Thesis

Abstract

The purpose of this dissertation derives from the fact that the market for impact investing has recently not met its anticipated growth expectations. In order to scale from a niche to a mass market impact investing also needs to attract retail investors, since additionally demand for impact investing is driven from the bottom up. Thus, for the market to evolve to a mass market in the future the following question arises: What majorly impedes future retail investors from consideration? In order to answer this question an empirical study was conducted in Germany and Portugal with students as a proxy for future individual investors. The study strives to examine the perception of impediments of impact investing defined in the general literature alongside three dimensions: financial return, social return and market infrastructure. The main findings of the study are that there is an indication for a shift in mind-set regarding financial profitability of social enterprises as well as objectives of investment towards social impact. This perception is not dependent on whether sample respondents have had previous investment experience or not, thus supporting the conclusion. Although future investors are willing to trade of financial return for social impact, measurement and accountability still follow traditional return logics. There is a high need for standardized measurement and demonstration of impact achieved. In addition, the perception of challenges of II was found to vary across national boundaries.
Date of Award13 Jul 2017
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorSusana Frazão Ferreira Fernandes Pinheiro (Supervisor)

Designation

  • Mestrado em Gestão e Administração de Empresas

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