Updated: Nov 8, 2019
"Money makes the world go round", they say, But is it true in our 21st century society?
Our lives have been shaped by monetary means for so long, it's almost part of our DNA these days. There has, however in recent times, been a surge of Impact Revolution followed that see the need in a bigger picture. These, "Impactees" I will call them, have started asking different questions with regards to their investment activities.
Instead of thinking "What can I get out of this", questions like, "Who/what can I impact through this" have come to the surface. Impactees are all the more willing to make the shift from pure financial returns to returns with a social 'flavor' to it. Do these people have a point, and if they do, should we get on the bandwagon before everyone else?
According to the law of diffusion of innovations (yes I love to use this law in my writing) only a hand full of people start with, and believe in a idea at first (See the diagram 1.1). Within time, more and more people join until eventually or hopefully, the idea that was launched becomes the norm. The same I believe is true for the innovation of the way we see investing. We are at a stage where most people are frowning at the idea of social service being linked to their investment capital. We have a "who cares?" attitude for the most part. What Impactees are suggesting, however, is the answer to that question: "We care!"
If you are like me then, and want to desperately immerse yourself in knowing more about the subject or even better: get started with impact investing immediately...this next part is for you.
To know more about Impact investing itself, I recommend reading the book On Impact: A Guide to the Impact Revolution or doing the four week course 'A guide to the Impact Revolution' on www.futurelearn.com. These are valuable tools in order to get to know the industry and how it works. Knowledge is, after all power.
I have been playing around a bit on Fedgroup's website with their venture called Impact Farming ( https://www.fedgroup.co.za/ventures/impact-farming/how-it-works ) and even bought a few blueberry bushes myself. What they aim to achieve is crowd funding for a farm, and it works perfectly. Before long I will be buying two-tone shirts and putting John Deere stickers on my Ford Fiesta just because I feel like I'm actually farming when I buy on the Fedgroup app.
There are dozens of organisations just like that out there (www.popup.co.za for example), and if we equip ourselves with the necessary knowledge to become part of them or even start our own, we will see change happening right before our eyes.
Money does make the world go round yes, but money with impact and care enables other people to do what we do...and THAT'S what makes the world go round. The impoverished family being able to create their own vegetable gardens or the farm worker being equipped to be a active participant in the economy.
Yes, returns are important and we will still receive them when we become Impactees, the only difference is that we will have made a change that no amount of money could ever equal!