The Oxford Social Finance Programme is an exciting way to gain a global perspective on social entrepreneurship. This new graduate-level program combines fundamental knowledge with innovative practice. It will introduce you to a range of new perspectives on impact investing, social impact bonds, and funding models. Upon completion, you will be well-equipped to help fund socially responsible businesses. This programme has received acclaim from the ILO and other leading organisations.
ILO’s Social Finance Programme
The ILO’s Social Finance Programme pairs finance professionals with organizations in the developing world to create new financial products. By leveraging innovative finance solutions, this programme aims to improve the lives of people in low-income and emerging markets. Its mission is to promote human rights, decent employment opportunities, and strengthening dialogue on work-related issues. To this end, the programme provides a platform for developing and testing financial services. It also promotes the idea that financial services can help achieve social goals when they are combined with non-financial solutions.
Social protection is a human right and an investment with high returns. However, despite this, over half of the world’s population does not have access to any form of social protection. Coverage of the most vulnerable people is low, and the main barrier is insufficient funding. In developing countries, an estimated USD 1.2 trillion would be required to fill the gap in social protection. This is equivalent to about 3.8 per cent of average GDP per year.
Impact investing
The cost of capital associated with impact investing has traditionally been high. The majority of these deals are under $1 million, presenting a challenge for investors. However, with mezzanine finance, small-scale social enterprises can move up development stages and take on larger amounts of capital. This makes impact investing a viable option for small-scale social enterprises that are seeking to grow. The investment process is more complex than conventional investment and there are several considerations to take into account.
Impact investing is a form of investment that seeks to generate financial return and positive social benefits. It crosses sectors, investment size, and geography. Impact investing supports firms that are trying to address environmental, social, and governance (ESG) issues. The key to creating a successful impact investing model is to create a sustainable ecosystem. Creating this ecosystem requires collaboration among different sectors and stakeholders. The key to making an impact is to understand the impact and opportunities in the context of your particular sector.
Social impact bonds
Social impact bonds are a way to fund projects and services that are proven to increase societal well-being. In such schemes, the public sector contracts with an external organization to deliver a specific service, and pays only when the outcome is achieved. To achieve this, the external organization may hire nonprofit service organisations and manage them. If these nonprofit organisations are successful in their projects, the public sector pays them back. However, if the services are not sustainable, the public sector does not have to pay them back. It then turns to private investors and socially conscious philanthropists for help.
Social impact bonds (SIBs) are a new way of funding social programs through private investments. They require upfront capital investments, and are paid back only when measurable outcomes are achieved. They differ from fee-for-service contracts, which focus on processes rather than outcomes. As a result, SIBs are more likely to be successful. In addition, they enable governments to make more targeted investments that improve communities.
Funding models
There are a number of different social finance programmes, and the funding models that these projects use can differ widely. The three main models of social finance include the Social Innovation Fund, social impact bonds, and pay for success contracts. The programme aims to train participants to design innovative partnerships and to develop effective capital market strategies. It will teach participants how to use the financial markets to achieve social impact. The course will also cover the art of the possible, a concept that is emerging in social finance.
The Social Finance Fund is a new investment model that focuses on inclusion and social equity. The Fund will make sure that investments go to diverse equity-deserving communities and underrepresented groups. It will also aim to address systemic bias and ensure that diversity analyses are integrated into investment decision-making processes. For example, a minimum of $100 million of the program’s funds will go toward investments that promote gender equality. Similarly, $50 million of the funds will be invested in Indigenous growth, with the Business Development Bank of Canada administering the Indigenous Growth Fund.
