At the GSG Global Impact Summit 2023 in Malaga, a fireside chat explored the intersection of entrepreneurship, innovation, and impact.

Julie Wallace, Head of Impact at LeapFrog Investments, and Maya Ziswiler, CEO of UBS Optimus Foundation, shared insights on leveraging innovative tools and strategies to drive sustainable development and support social enterprises.

Maya Ziswiler discussed the use of innovative financing tools like convertible grants and impact-linked loans. 

"Philanthropy bridges the gap between giving and investing, helping to de-risk and build partnerships to unlock more funding for SDGs."

Blended finance structures are crucial in mobilising commercial capital by using philanthropic and public capital to de-risk investments.

“Blended Finance is around making sure that we can deploy our philanthropic capital or public capital as a way to derisk and enhance returns, so we can crowd in more commercial capital. This can make investments that are not suitable for risk-averse investors more attractive because we've been able to de-risk them and enhance returns.” - Maya Ziswiler

The SDG Outcomes Fund and structured notes with philanthropic liquidity guarantees are examples where blended finance has significantly amplified impact.

Technology can enhance the reach and effectiveness of social enterprises.

Maya Ziswiler highlighted the use of technology in education to identify and support students who need the most help. By leveraging digital tools, educational enterprises can track student progress, tailor learning experiences, and ensure that educational resources are effectively targeted.

"In education, technology allows us to see where students are at the beginning, identify those needing the most support, and provide the right programs to ensure progress."

In the healthcare sector, technology enables low-cost clinics like Jacaranda Maternity (a social enterprise operating three low-cost maternity hospitals in Kenya) to be more patient-centric. Digital tools provide reminders for prenatal and postnatal care, enable feedback mechanisms, and support group formations among patients, enhancing the overall care experience.

"Technology in healthcare helps clinics to offer timely care reminders and patient support, improving both access and quality of care."

AI and other advanced technologies play a crucial role in environmental conservation. Underwater cameras and AI systems monitor biodiversity, track species over time, and help preserve ecosystems by providing real-time data for better decision-making.

"Using AI to monitor biodiversity and track species helps us preserve ecosystems and make informed conservation decisions."

The integration of technology across various sectors amplifies the impact of social enterprises, making it possible to reach underserved populations and address pressing social and environmental issues effectively.

Julie Wallace emphasised the importance of scaling impact through robust governance, financial management, and innovative product development.

"We help companies scale by strengthening their products to reach more emerging consumers, like the digital pharmacy model in East Africa."

Julie Wallace highlighted that strong governance and financial management are essential for scaling social enterprises. By implementing robust governance frameworks and financial controls, companies can manage growth more effectively and sustain their impact.

"We focus on governance and financial management to ensure companies can scale sustainably and maintain their impact."

Product development is a critical component in achieving scale. By innovating and improving their products, social enterprises can better meet the needs of emerging consumers and expand their market reach. For instance, GoodLife Pharmacy Kenya's development of a digital pharmacy platform in East Africa has significantly increased its ability to serve more consumers.

"Building a digital pharmacy helped GoodLife Pharmacy reach many more emerging consumers, making up 15% of their revenue."

LeapFrog's investments in financial services companies are crucial for supporting small and medium-sized enterprises (SMEs). These companies provide tailored loans and financial products to SMEs, fostering entrepreneurship and economic growth in their local markets.

"Through our financial services investments, we've supported 17 million micro, small, and medium-sized enterprises across our markets."

Julie emphasised the importance of continuous impact measurement to ensure that growth does not compromise the depth and quality of impact.

Continuous impact measurement is essential for ensuring that investments achieve their intended social and environmental outcomes. Julie Wallace stressed the importance of this practice for several reasons:

• Accountability and Transparency

Regular impact measurement ensures that organisations remain accountable to their stakeholders. By consistently tracking and reporting on impact metrics, companies can demonstrate transparency and build trust with investors, customers, and communities.

"We gather impact data quarterly and use it to help companies improve their performance and deepen their impact."

• Data-Driven Decision Making

Collecting impact data on an ongoing basis allows organisations to make informed decisions. By analysing this data, companies can identify what is working well and what needs improvement, enabling them to adjust their strategies and operations to maximise their positive impact.

"We're constantly looking at those products and services that are most impactful in reaching emerging consumers and helping companies enhance these areas."

• Enhancing Impact Over Time

Continuous measurement helps organisations track progress toward their impact goals and ensures they are on the right path. This long-term view allows companies to refine their approaches, scale effective solutions, and ensure their impact grows alongside their business.

• Integrating Profit and Purpose

At LeapFrog, impact measurement is integrated into the overall business strategy. This approach ensures that profit and purpose are considered side-by-side, aligning financial performance with social and environmental outcomes.