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Beyond the Margin: Redirecting Asia's Capitalism

    

 

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 Download the full report(Chinese version)

 Download the executive summary(Chinese version)

 

24th August 2011 - Avantage Ventures is proud to launch the reportBeyond the Margin: Redirecting Asia’s Capitalism, the first to analyse the Asian social finance market.

The report highlights six key social sectors that would benefit most from impact investments, these include:

  • Affordable housing
  • Sustainable agriculture and agribusiness
  • Water and sanitation facilities
  • Primary and special needs education
  • Rural and elderly healthcare
  • Rural access to energy

Of these, affordable housing, primary education and rural and elderly healthcare represent the three sectors with the greatest market opportunity. The report also estimates the potential market size that can be captured through impact investing in Developing Asia to be between USD52 to USD158 billion by 2020.

Beyond the Margin aim to start discussions about impact investing in Asia and bring attention to the future of the world’s most populous region. Investors can now invest beyond the margin into SMEs with explicit social missions that are focused on balancing social and financial returns. Otherwise called social enterprises, these organisations can play a significant role in development if properly financed and supported.

The investment needs of Asian social enterprises can be fulfilled if global private investors allocate only 1% of their funds destined for Asia towards impact investments. As an emerging asset class with great potential for social impact and financial returns, impact investing has been slow to gain traction in Asia due to the region’s underdeveloped social finance infrastructure. However, the evolution of the industry indicates that an opportunity now exists for an efficient social capital market, funded by investors who recognise the need and potential of social innovation.

For Asia to stay relevant in the 21st century and survive potential financial calamity, social and economic impact must go hand in hand in the investment and development of businesses. Thanks to the rise of Asian wealth and with economic confidence in the region at an all time high, there is no better time to redirect capitalism to Asian social enterprises than now.  

If you have any comments on our report, please email us at feedback@avantageventures.com. We look to forward to your feedback and our future conversations on how the impact investing industry will take shape in Asia.