The concept of an impact economy sets out a powerful vision of a future that aligns profits with purpose in a comprehensive way. It posits that impact objectives will become mainstream features of capital allocation and, in turn, the power of capital markets will be unleashed to drive sustainability as much as efficiency. Â
Moving from where we are today toward realizing the vision of an impact economy involves systemic changes. To what extent meaningful changes can happen from the bottom up is a contested issue, as is the question of how much of that should be driven by private actors, civil society, and government policy. A vital ingredient in all scenarios is the need for entrepreneurial approaches that develop innovative solutions, which combine deep impact with sustainable business models. Fortunately, we are seeing a growing number of impact ventures that demonstrate not only how lasting opportunities can be created for people who have been underserved (or even…