Understanding Impact Business

Do You Know What Impact Businesses Are?

If you are reading this text, you probably do not have much clarity about it. We are here for this: clarify what Impact Business is and how they have acted in Brazil.

In general, impact businesses seek to solve a social or environmental problem through a market mechanism. They are entrepreneurs who see in their businesses the possibility of combating socio-environmental ills at the same time as they manage to generate financial results. That is, the business model is capable of financially sustaining the intentionality of the company’s impact.

There are business impact in different areas. While some undertake to improve education in Brazil, others strive to reduce deforestation in the Amazon. Regardless of the scope of the business, the willingness to leave a positive legacy in society is unanimous among the entrepreneurs of these businesses.

You may find some different concepts from the various impact business definitions. Some consider that this type of business may not distribute dividends, but rather reinvest all the profit generated in its operation. Others consider that the distribution of dividends should rather occur. There are also other approaches that address the estimated return for these businesses. What is really important is that all have in their mission the intentionality of solving some socio-environmental problem.

 

Resident of Vila Governador (Pinhais / PR) receives the title of her property. Terra Nova, one of our investees, was responsible for the process of land tenure regularization and is an example of an impact business.

 

Our Approach

We at MOV contribute to Impact Business by bringing financial, human resources and management expertise, governance and innovative business models to entrepreneurs in need of support. We invest in transforming and scalable companies that seek to generate social impact for vulnerable populations and / or to combat environmental degradation.

By fostering the industry, we also come to consider ourselves as an Impact Business. We have in our mission the commitment to impact in the first place. If you want to be part of this MOVement, contact us!