Investing in Social Entrepreneurs: A Pathway to Impact
- Investing in Social Entrepreneurs: A Pathway to Impact Devin Thorpe 25:40
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Devin: What is your superpower?
Nicole: I would say 90% of what NESsT did and has done has been just the hard work of myself and the team, the wonderful team that I have worked with closely. It’s persevering. It’s not giving up.
In today’s episode of Superpowers for Good, I had the privilege of speaking with Nicole Etchart, Founder and Board Member of NESsT, an organization dedicated to impact-first investing in social enterprises within underserved communities. Throughout our conversation, Nicole shared valuable insights into what it takes to truly make a difference through impact investing.
One of the key takeaways from our discussion was the importance of being clear about your intentions as an investor. Nicole emphasized that at NESsT, they approach their investments with an “impact first” mindset. This means prioritizing social impact over immediate financial returns. Nicole explained, “When you’re working in remote areas with low-income communities, the changes do not happen overnight. So, having patient capital and accompanying companies through their journey is critical.”
Patience isn’t the only characteristic necessary for successful impact investing. Nicole also highlighted the need for risk tolerance, especially when working with diverse, low-income communities in challenging environments. She pointed out that this approach can lead to more resilient companies that are better equipped to navigate obstacles, as seen during the COVID-19 pandemic.
Finally, Nicole stressed the importance of being deeply committed to the local realities of the communities where investments are made. “It’s very important for those providing the resources at scale to be committed to the local realities and working with those local realities,” she said. This commitment ensures that investments are not only effective but also sustainable in the long term.
Nicole’s experience and Wisdom serve as a powerful reminder that impact investing requires more than just financial resources—it demands patience, a willingness to embrace risk, and a deep connection to the communities being served.
tl;dr:
Introduction of Nicole Etchart: Nicole Etchart is introduced as a leading figure in social entrepreneurship, having invested decades in supporting underserved communities through her organization, NESsT.
About NESsT: NESsT helps social enterprises grow and become self-sustainable, focusing on dignified Employment for underserved communities. The organization has invested in around 250 companies, creating over 112,000 jobs and impacting 1.7 million people, primarily in emerging markets.
Investment in Impactful Enterprises: Nicole discusses NESsT’s work with companies like Aswabe in the Brazilian Amazon, which produces Brazilian nuts sustainably. NESsT supports these enterprises through capacity building, business services, and providing capital, ensuring they can grow and have a greater impact.
Impact Investing Approach: Nicole emphasizes that NESsT is an impact-first investor, prioritizing social impact over quick financial returns. She highlights the importance of patience, tolerance for risk, and deep understanding of local realities in successful impact investing.
Personal Insights and Resilience: Nicole shares her personal background and attributes her success to resilience, hard work, and the support of mentors. She also discusses the challenges NESsT faced in starting its own impact fund and the importance of perseverance in achieving long-term goals.
How to Develop Resilience and Perseverance As a Superpower
Nicole Etchart’s superpower is her remarkable resilience and perseverance. Throughout her career, she has faced numerous challenges and setbacks but has consistently demonstrated the ability to push through obstacles, remain committed to her mission, and ultimately achieve success. This tenacity has been central to her work with NESsT, where she has led efforts to invest in and support social enterprises in underserved communities.
One example of Nicole’s resilience is when NESsT decided to start its own impact fund. Despite skepticism from the board and others who doubted their experience in impact investing, Nicole persisted. She and her team spent a year convincing stakeholders of their capabilities and then successfully raised the necessary funding. This effort culminated in the establishment of two functioning funds, one in Central Eastern Europe and one in Latin America, now investing millions of dollars in social enterprises.
Tips for Developing Resilience and Perseverance:
Find Supportive Mentors: Surround yourself with people who believe in you and your mission. These mentors can provide reassurance and encouragement when you face challenges.
Maintain a Long-Term Vision: Keep your eye on the ultimate goal, even when the journey is tough. This focus will help you navigate through obstacles.
Embrace Persistence: Don’t give up, even when others doubt your abilities. Persistence in the face of adversity is key to achieving your goals.
By following Nicole Etchart’s example and advice, you can make resilience and perseverance a skill. With practice and effort, you could make it a superpower that enables you to do more good in the world.
Remember, however, that research into success suggests that building on your own superpowers is more important than creating new ones or overcoming weaknesses. You do you!
Guest Profile
Nicole Etchart (she/her):
Founder and Board Member, NESsT
About NESsT: NESsT invests in enterprises that create quality jobs for underserved communities while sustaining the planet. Locally based social enterprises are uniquely qualified to transform low-income, excluded and environmentally vulnerable communities. These enterprises are on the ground, have the trust of the communities, and have created businesses aligned with their best interests. NESsT supports social enterprises through two businesses: (1) loan funds that provide patient debt financing to purpose-driven small and growing businesses in emerging markets and (2) an accelerator program that catalyzes impact-focused enterprises towards Growth and investment readiness.
Since its founding in 1997, NESsT has invested over $36M and trained and supported over 35,000 entrepreneurs across 50 countries. It has accelerated and financed 248 enterprises, in total sustaining more than 112,000 formal jobs and improving the lives of 1.7 million people from the most marginalized communities around the world, including smallholder farmers, Black people, Indigenous Peoples, ethnic minorities, the LGBTQIA+ community, migrants and refugees, people with disabilities, women, and youth.
Website: www.nesst.org
X/Twitter Handle: @nesstorg
Company Facebook Page: fb.com/nesstorg
Linkedin: linkedin.com/company/nesst/
Instagram Handle: https://www.instagram.com/nesst_org/
Biographical Information: Nicole Etchart, Co-Founder & Board Member of NESsT, plays a pivotal role in driving global strategy, growth, and impact. NESsT invests in and provides strategic business support to social enterprises focused on generating quality jobs for underserved communities while sustaining the planet. During her 27 years as CEO, Nicole oversaw the organization’s diverse portfolio of high-impact enterprises through its acceleration program and impact-first funds.
Linkedin Profile: linkedin.com/in/nicole-etchart-437a171
Max-Impact Members
The following Max-Impact Members provide valuable financial support to keep us operating:
Carol Fineagan, Nicholas and Company | Lory Moore, Lory Moore Law | Marcia Brinton, High Desert Gear | Ralf Mandt, Next Pitch | Sheryle Gilihan, CauseLabs | Add Your Name Here
Upcoming SuperCrowd Event Calendar
If a location is not noted, the events below are virtual.
Impact Cherub Club Meeting hosted by The Super Crowd, Inc., a public benefit corporation, on August 20, 2024, at 1:00 PM Eastern. Each month, the Club meets to review new offerings for investment consideration and to conduct due diligence on previously screened deals. To join the Impact Cherub Club, become an Impact Member of the SuperCrowd.
SuperCrowdHour, August 21, 2024, at 1:00 PM Eastern. Each month, we host a value-laden webinar for aspiring impact investors or social entrepreneurs. At this month’s webinar, Devin Thorpe will provide a “Step-by-Step Guide to Raising Capital from the Crowd.”
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