In a presentation at a debut conference run by the Asociaciones de Empresas Familiares del Perú y de Chile (Associations of Family Businesses of Perú and Chile) , Elaine King, highly sought after international expert in finances, put the spotlight on impact investing as an effective tool for involving and empowering the next generation of family business owners. The conference, titled Encuentros, was the first of its kind and featured a wide range of topics and experts.
King, an experienced professional advisor for family businesses, outlined three main ways family businesses can connect with the youngest generation, in part by energizing them with impact investing.
How can family businesses use impact investing to energize the next generation?
Being a responsible business. This might involve applying for B Corporation status. This certification is for businesses that balance profit and purpose. They meet high standards for caring for not just their customers, but also their employees, communities, and the environment.
Impact investing. Did you know that 60% of the next generation of leaders in family businesses want to be involved in impact investing? Yet, only 4% of them are actively involved in this type of investment. Impact investing is a wonderful way that businesses can be a positive force for change in the world. With impact investing, companies can invest in causes through carefully chosen bonds or stock that reflect their values while also engaging the next generation.
Participating in groups involved in philanthropic activities. Groups like Nexus and Young Global Leaders Conference provide opportunities for young people to get together and talk about philanthropic endeavors. These connections can help spur the motivation of younger generations, helping them feel more invested in the family business.
The next generation is the future of the business! Getting the next generation enthusiastically involved in running the business is essential for family businesses to live on into the future. Impact investing is a positive, effective, and financially viable way to get there.