We can all invest with impact

funding gap emerging markets

What is impact investing and how different is it from microfinance? Discover the possibilities.

Impact investing has become important for many investors. Both in the Netherlands and internationally, more and more investors find it important to make an impact with the investments they make. But what exactly is impact investing? And can you do it even with a small amount of money? Find out here.

 

What is impact investing?

Impact investing stands for investing in entrepreneurs who create a positive impact on people and the planet. That they then make a profit from it helps them fulfill their mission to make more impact. 

It's a definition that follows from an extensive article on sustainable and impact investing written by our CEO Koen. He describes the differences between a sustainable investment and an impact investment. 

Important characteristics of sustainable investments include ESGs, which stand for attention to the environment, social aspects, and governance. Following those guidelines, companies make an impact as a by-product of their original mission. Impact investing, on the other hand, is about companies that want to make a positive impact and see profits merely as new fuel to make more impact.

 

Impact investing versus microfinance: what are the differences?

Impact investing contributes to the positive impact entrepreneurs make. You may know this approach from microfinance. The two concepts are often confused or even used interchangeably. Therefore, we put two definitions next to each other, indicating the difference:

Microfinance: financial services for individuals or groups seeking employment or with a low income, and therefore unable to access other financial services.

Impact investing: investing in companies, organizations, and funds that have the primary goal of making a social and societal impact.

The confusion often arises with the companies you can invest in with impact. Those companies have difficulty accessing traditional financial services, so they turn to impact investors. Microfinance and impact investing are two different ways to support these entrepreneurs in emerging markets.

 

17 Sustainable Development Goals of the United Nations

When impact investing from the Netherlands as well as from the rest of Europe and the world, there is a focus on the 17 Sustainable Development Goals of the United Nations. The goals are set to fight poverty and hunger. They also include working on improving health, education, and access to sustainable energy.

Find out how to contribute to these goals with Lendahand on the Impact Page.

 

Impact investing in the Netherlands: starting from €50

Everybody can invest with an impact. You can contribute as little as €50, so it doesn't have to be a large amount. We share projects where you can make a real impact even with a small contribution.

Discover the projects available for you to support entrepreneurs in emerging markets. Will you join us? Impact investing is our collective key to success.