Microfinance Focus January 13, 2011: The recently concluded Impact Forum for social exchange co organized in Dhaka, Bangladesh by the Asian Development Bank (ADB) and Impact Investment Exchange Asia (IIX Asia) saw conclusions of social enterprises making a significant contribution towards inclusive economic growth and providing opportunities to the poor of the Asia and Pacific region.

However, financing from impact investors was seen as a requisite to boost their efforts. A social stock exchange offered possible mechanisms to bridge the gaps.

“This forum shows that there are substantial private funds available to invest in social enterprises. To free up more of these funds, however, it will be necessary to identify social enterprises ready to receive capital, agree on a way to measure their performance, and create vehicles through which investments can take place,” Said Bart W. Édes, Director of ADB’s Poverty, Gender, and Social Development Division.

“A regional stock exchange serving social enterprises from Bangladesh and other developing countries would link social enterprises in need of funding with impact investors who understand their business models and value their social mission,” said Durreen Shahnaz, founder and Chair of IIX Asia, adding, “Such a specialized exchange would reduce the cost of search for impact investors and increase their confidence in purchasing shares and bonds issued by social enterprises looking to expand their operations.”

The one-day forum saw 60 participants gather together from the government, development agencies, social enterprises, and impact investors, as well as experts in capital market development and resource mobilization. It was aimed at providing participants with a deep insight of impact investment, impact measurement, and the market readiness of social enterprises in Bangladesh and other areas of the Asia and Pacific region.

ADB’s support for the forum was provided by the technical assistance project on Developing a Regional Social Investment Exchange Initiative, financed by the Investment Climate Facilitation Fund under the Regional Cooperation and Integration Financing Partnership.