Financing Inclusive Businesses

Catalog description

This course assesses the role of inclusive business (IB) as a strategy for economic growth, private-­‐sector development and poverty reduction, and the two main IB financing modalities: bank debt and private equity. Analytical frameworks are provided for understanding how IB strategies incorporate and affect the poor as consumers, producers, suppliers, distributors and employees. In this context, important distinctions are drawn between IB financing and sound environmental, social and governance (ESG) policies; socially-­‐responsible investing (SRI); and corporate social responsibility (CSR). Using case studies from selected developing economies, we take stock of the successes and failures of financial institutions and private equity funds in IB financing. In assessing modifications and solutions needed to boost capital deployment in IBs, the key debates in this emerging discipline are considered and placed in the wider context of impact investing. You will learn to identify and interrogate IB strategies and determine the most appropriate—and likely successful—financing modalities for them. The course will enable you to identify and prioritize key components and risk factors when designing an IB lending program or private equity fund.