What is Impact Investing?
Before we dive into why impact investing is so important for the coming year and beyond, let’s quickly define what it actually means. Impact investing is an investment strategy that focuses on generating measurable social or environmental impact alongside financial returns. This could mean anything from investing in renewable energy projects to providing loans to small businesses in under-resourced communities. The idea is that you are not only earning a return but also having a positive effect on the world with your investments.
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The Power of Impact Investing During a Volatile Economy
While impact investing has been steadily gaining traction over the past few years, its importance is more evident than ever when times get tough. For example, during 2020 as the COVID-19 pandemic swept across the globe, many businesses were forced to close their doors due to restrictions put in place by governments trying to contain the virus. This led to massive unemployment in many countries. However, thanks to impact investors who provided essential funding for small businesses during this difficult time, some of these companies were able to keep their doors open and provide jobs for those without them—which was especially crucial for low-income households who rely on these jobs for basic necessities like food and shelter.
Toni Hopkins received a loan during COVID-19 which allowed her to open her business, Cool J’s Apparel
The Benefits of Impact Investing Beyond 2023
Although its power has been made abundantly clear during times of economic hardship, impact investing isn’t just about getting through hard times—it’s also about using those challenging moments as opportunities for true transformation. By channeling capital into projects that bring change at both the local and national levels, individuals and corporations have an opportunity to make their investments count toward something greater than themselves—all while still receiving an attractive return on their investment!
2023 marks yet another exciting opportunity for all of us here at CNote—and we can’t wait to share our mission of closing the wealth gap through financial innovation with you all! By empowering under-resourced communities through impactful investments that deliver measurable social or environmental benefits alongside attractive financial returns, CNote remains committed to helping you make sound investment decisions while simultaneously driving meaningful change throughout society and making sure everyone has access to resources they need now and in the future. We hope you join us on our journey towards making a real difference in 2023!
