Financial social innovation to engage the economically marginalized: insights from an Indian case study

Bhatt, Punita; Ahmad, Ali J.

Abstract

© 2017 Informa UK Limited, trading as Taylor & Francis Group. New sources of finance within the label of ‘impact investing’ have emerged as mechanisms to promote entrepreneurship within marginalized communities. Different vehicles for impact investment have emerged over the years; however, our understanding around their emergence, configuration and adoption is limited. Hence, the main purpose in this research is to study the role of the contextual drivers and conditions that gave rise to a unique form of impact investment in India, a financial social innovation–developmental venture capital (DVC). Through the lens of capital theories, insights from the case of India’s largest and oldest DVC firm along with three of its most prominent investees are presented. Findings highlight that the social entrepreneurs behind the case DVC wholly re-conceptualized silicon valley-style venture capital financing to suit small brick and mortar investments in rural India, developed mechanisms for deploying funding frugally, and created partnerships of equals between themselves and their investees. Investee founders leveraged human and social capital throughout the social innovation process via deep immersion in the socio-cultural milieu of India.

Citation

Bhatt, P., & Ahmad, A. J. (2017). Financial social innovation to engage the economically marginalized: insights from an Indian case study. Entrepreneurship and Regional Development, 29(5-6), 391-413. https://doi.org/10.1080/08985626.2017.1287961

• Journal Article Type: Article
• Acceptance Date: Jan 24, 2017
• Online Publication Date: Feb 7, 2017
• Publication Date: May 27, 2017
• Deposit Date: Dec 17, 2019
• Publicly Available Date: Dec 17, 2019
• Journal: Entrepreneurship & Regional Development
• Print ISSN: 0898-5626
• Electronic ISSN: 1464-5114
• Publisher: Routledge
• Peer Reviewed: Peer Reviewed
• Volume: 29
• Issue: 5-6
• Pages: 391-413
• DOI: https://doi.org/10.1080/08985626.2017.1287961
• Keywords: social innovation; social impact investment; social enterprise; rural; India
• Public URL: https://nottingham-repository.worktribe.com/output/3587337
• Publisher URL: https://www.tandfonline.com/doi/full/10.1080/08985626.2017.1287961
• Additional Information: This is an Accepted Manuscript of an article published by Taylor & Francis in Entrepreneurship and Regional Development on 07/02/2017, available online: http://www.tandfonline.com/10.1080/08985626.2017.1287961