Philip, Arta
Brainstorming Solutions
Written by philip:
From the email: Fragmented Ecosystem: A lack of coordination among stakeholders leads to inefficiencies and missed opportunities .
You
Problem 1: Fragmented Ecosystems
Issue: Within the Dutch impact investment landscape, there is a lack of coordination amongst many stakeholders, including investors, social entrepreneurs, government agencies, and community organizations. Therefore there are duplicated efforts, wasteful resource use, and a lack of awareness of promising social investment opportunities are the results of this issue.
Solution: Establish an impact investment platform, a digital site where stakeholders can share information, guidelines, and opportunities. This can promote cooperation and would help close these gaps within impact investment. This would be possible by integrating this onto the AMPTD website.
Similar platforms, such as Big Society Capital, are already in place in nations like the UK, and an introduction in the Netherlands of something similar might close a significant coordination gap.
1. This solution is/not similar to other current ideas that we have.
This solution is similar to solutions 2 and 3, and it builds on the general platform that we are already creating, and this helps expand the general idea of the things necessary for the platform and what needs to be included.
2.
Helping
Harming
Internal Origin
Strengths:
A shared online platform can help people in Maastricht work better together. Such as investors, charities, the city, and local businesses.
Maastricht has groups and experts at Maastricht University who care about social issues and can help with advice and research
- Connecting this to a website like AMPTD saves time and money
- Builds trust and makes it easier for new people to learn about impact investing.
Weaknesses:
Someone needs to keep the platform running and up to date
Some people or groups might not want to join right away
Building the platform and getting people to use it takes time and effort
Different groups may have different goals, which can make working together harder
External Origin
Oppertunities:
Maastricht can be a test city, and if it works well here, it could be used in other cities too
Students and researchers in Maastricht can help build and improve the platform
The city might get money from the EU or Dutch government to support local projects
Local problems like youth unemployment or poverty can get more attention and funding
Threats:
Some local projects might worry they’ll be ignored on a bigger national platform
If there are already other websites doing similar things, it might confuse people.
If the site isn’t promoted well, people might not use it
Since Maastricht is close to Belgium and Germany, it might be harder to include projects from nearby regions that follow different rules if we were to expands further then only Maastricht.
do you and your team have the time to carry it out?
Our group does have the time that is necessary to making a quality platform, although it wouldnt be done in the given time frame of the Youth majors project. We in advance knew that we would like to continue this project even after the youth majors has ended, until we have finally achieved our goal of creating this solution.
do you and your team have the skills to carry it out?
Our group of five group members do have enough skills to be able to make this project a reality. We have a wide range of network to assist us in facilitating this solution, and we all have specific skills which combined will be used to create this platform.
do you and your team have the resources to carry it out (including money)?
Funding is available for our team to develop this platform. Additionally, we have acquired valuable resources like bankers, financial advisers, and business owners that provide guidance on the evolution of our project.
will you and your team be able to get the required support (including approvals from authorities) to carry it out?
Theres a high chance that our project will get approved by authorities, as our project aims to support and develop Maastricht in general.
From the email: Limited Data Sharing: The absence of shared data and best practices hampers the growth and effectiveness of impact investments.
Problem 2: Limited Data Sharing and Complex Impact Measurements
Issue: In the Netherlands, there is no standard method for assessing and publishing the results of social impact investments. Investors find it challenging to evaluate projects and determine the return on their investment as a result.
Solution: To develop an impact measurement framework/or platform aligned with the Dutch standards, such as the SDG Impact Standards, specifically for Maastricht. This framework should be supported by a data platform, where impact investors and social entrepreneurs can post their results in a consistent and transparent way.
This approach would not only improve accountability but it would also increase the investors confidence as they can assume what they can get in return from an investment, which would also help prevent financial/investing inertia (1d) which people might have, and this transparency can also lead to more capital flowing into projects that are proven to work.
1. This solution is/not similar to our current ideas.
This solution seems similar to other solutions and measuring frameworks already in existence internationally, but what sets ours apart from others is that it is small-scale and tailored to one specific city (Maastricht).
2.
Helping
Harming
Internal Origin
Strengths:
Helps social projects in Maastricht prove their impact using reliable data
Makes it easier for investors to see where their money is making a difference
Using international standards (like the SDGs) gives the platform global credibility
Starting in a small city like Maastricht makes testing and improving easier before expanding throughout the Netherlands for example
Weaknesses:
Building and maintaining a shared platform takes time, money, and tech skills
Some people may find data reporting confusing or time-consuming
It might take a while for everyone to start using the same method
Training and education may be needed for smaller social businesses to report effectively
External Origin
Opportunities:
Maastricht could become a leader in social impact transparency in the Netherlands
Attracts more investors to local projects if they can clearly see the results
The platform could get support from the EU, especially through programs related to sustainability and data innovation
Builds trust between investors, citizens, and project leaders
Threats:
Other cities or regions may start similar platforms, creating confusion if systems don’t match
If reporting is too complicated, people might avoid the platform
Not all investors care about social data yet, so it might take time to build momentum and people actually using it
Risk of low participation if no clear benefits are shown early on
do you and your team have the time to carry it out?
as for the first solution, that is also an online platform or part of it, the project wouldn't be completed in the time frame provided for the Youth majors project, our group does have the time required to create a high-quality platform. We knew in advance that we wanted to keep working on this project until we had finally succeeded in coming up with this answer, even after the youth majors were over.
do you and your team have the skills to carry it out?
By contacting the government and putting forward this option, some of our team members who have greater legal knowledge or know people who might know more about it, as well as connections, could help us.
do you and your team have the resources to carry it out (including money)?
As we know a lot of people as well as within school, who have lots of knowledge on specific things that could help us progress, we do have the resources, there isnt lots of money required to be able to start this project, although with the help of getting money funded would help as well.
will you and your team be able to get the required support (including approvals from authorities) to carry it out?
As to the previous solution suggested, we do think we have a great chance of getting this project approved by the authorities of Maastricht.
Done By Philip-
Philip’s Chicago style Bibliography:
Daggers, Jess, and Alex Nicholls. Big Society Capital: The World’s First Social Investment Wholesale Bank. Saïd Business School, University of Oxford, October 2016. https://www.sbs.ox.ac.uk/sites/default/files/2019-10/BSC%20Case%20Study%20Final%20October%202016.pdf.
Daggers, Jess, and Alex Nicholls. Big Society Capital: The World’s First Social Investment Wholesale Bank. Saïd Business School, University of Oxford, October 2016. https://www.sbs.ox.ac.uk/sites/default/files/2019-10/BSC%20Case%20Study%20Final%20October%202016.pdf.
Addy, Chris, Maya Chorengel, Mariah Collins, and Michael Etzel. “Calculating the Value of Impact Investing.” Harvard Business Review, January–February 2019. https://hbr.org/2019/01/calculating-the-value-of-impact-investing.
Problem 3:
Small percentage of total assets under management allocated to impact investments.
Solution: Increase the percentage of total assets under management allocated to impact investments through developing a platform connecting investors to social issues, where they can invest, increasing the total number of assets under impact investments.
1.This solution is not similar to other current ideas which we have.
2.
Helping
Harming
Internal Origin
Strengths:
This initiative is unique, as no such initiative in Europe has been developed so far. This initiative would also be tailored to customers in Europe, which other similar initiatives do not do.
Weaknesses:
This initiative is fairly new, so it will take some time for the initiative to attract global investors. Furthermore, our platform is specific for investments, which usually are long term projects and will take time for the investor to get their money back. It will also take time for the initiative to be able to fully eliminate the social issues which occur in the first place.
External Origin
Opportunities:
This initiative would be able to create a platform that increases impact investments contributing to the Netherlands’s GDP, as well as elevating Maastricht’s outlook on social issues, and providing more funding for solutions for social problems in Maastricht, ultimately eliminating the matters.
This platform also accelerates synergy within organizations and connects them to the Maastricht religion, benefiting the additional organizations that work with these investors.
Threats:
Following the success potential of our initiative, many other organizations or companies will attempt to replicate it to reap the benefits for their own use. To eliminate this, we would patent, trademark, and copyright the initiative we are developing.
Furthermore, other threats include other organizations that are similar to ours, offering creator incentives to investors who are already investing.
Do you and your team have the time to carry it out?
Our team of five students does have time to facilitate these solutions. Our benchmarks for creating the initiative were the solutions themselves, so we used them to develop our entire ethos for the initiative.
Do you and your team have the skills to carry it out?
Our team has the skills to create this platform. We have a wide network that allows us to facilitate this initiative, as well as specific skills such as website creation, developing the financial model, and building the platform.
Do you and your team have the resources to carry it out (including money)?
Our team does have the funding to be able to develop this platform. In addition, we have gained useful assets such as business owners, financial advisors, and bankers which advise the development of our organization throughout the way.
Will you and your team be able to get the required support (including approvals from authorities) to carry it out?
There is a high probability that the KVK and Financial Department will approve our initiative, as it directly impacts Maastricht’s community in social ways. This is a contribution to our community in general.
4.
Social
Ecological
Local
What would it mean for the people of Maastricht to thrive?
A higher percentage of investment funds would be available to accelerate initiatives, which would increase the city’s prosperity.
What would it mean for the people of Maastricht to thrive within their local natural habitat?
More funds to protect ecosystems such as the Meuse and limestone hills, allowing biodiversity to flourish. Additional support for green, sustainable enterprises and investments in sectors that generate environmental/social benefits.
Global
What would it mean for the people of Maastricht to Respect the well-being of people worldwide?
This would mean increased awareness of sustainability and increased funds for projects worldwide to do so. A portion of investments in Maastricht would contribute to the worldwide investments in this sector.
What would it mean for the people of Maastricht to Respect the health of the whole planet?
Creating and scaling up projects that would later benefit other areas of the earth and how they first affected Maastricht. This way, individuals and organizations worldwide can become more aware of the impact of investments contributing to social or environmental areas.
4. Problem: Lack of incentive for investors to invest in social impact issues.
Solution: Work with the local government to create incentives, such as a tax benefit for investors which are specifically investing in areas which contribute directly to the increase of assets going towards social impact investments.
This solution is not similar to other solutions that we may have.
Helping
Harming
Internal Origin
Strengths:
The greatest strength of having this incentive is that most organizations (in the Netherlands) and Maastricht are faced with a lot of regulations with taxes. Working to create a tax incentive will attract more organizations and companies to partner up with AMTD to give away less funds to tax, while being able to contribute to investments, and later get their money back at a higher rate. In addition, this aligns public policy with social goals, which ensures that impact investing is a key priority for Maastricht, and This also puts ADMPT in the spotlight for additional companies to invest in. Lastly, this also creates a longer commitment for the companies to be involved with AMPTD in regard to the tax incentive benefits they are receiving.
Weaknesses:
One of the weaknesses of this solution is that it depends heavily on government support. This also correlates to political stability, meaning that it is prone to damage. However, at the moment, the EU and the Netherlands have no significant issues, so this problem may not be relevant at the moment. Another main weakness this has is in order to get the tax benefits quickly, organizations may invest in cheaper projects in AMPTD, which are easier to profit from, but have less lasting social and environmental growth. If many organizations do this, this may be an issue as AMPDT won’t be getting closer to reach its goals as the higher costing projects, which offer more long term impact aren’t invested on. Last;ty, due to the incentive being related to taxis, it has high regulatory and tax complexity. This would require very high and advanced tax frameworks to manage the investment, to ensure it does not create bureaucratic hurdles for smaller investors or community organization, to ensure the opportunity is open to all equally.
External Origin
Opportunities:
This solution would increase opportunities for ADAMPT significantly as it is an opportunity for businesses to opt out of heavy tax regulations, while contributing to something with which their ethos may align.
In addition, this will grow a local impact investment market, and the city of Maastricht could position itself as a regional leader in impact finance, which will attract both domestic and international leaders who align with AMD's ethos. Lastly, this poses an opportunity to reach closer to the UN Sustainable Development goals, helping to improve local and global lives.
Threats:
Some threats which may be posed to AMPS are similar organizations to AMTD replicating what we are doing, but with a lower facilitation percentage; the facilitator (such as AMPTD) collects. This would make the incentives with the other business look better at AMPTD, making us lose customers. Furthermore, in times of economic instability, such as fiscal pressure, the government may cut back or eliminate these tax benefits, undermining the effectiveness of the entire solution. Lastly, if some organizations view this incentive as a quick, temporary fix instead of a long-term strategy, investors may not see them as a reliable tool for creating lasting change. This leads to A lack of commitment to social impact, and to the AMPTD programs.
Do you and your team have the time to carry it out?
Our team does have time to facilitate this. AMPTD is divided into areas where different people spend portions of their time in various areas, and some of the members of this incentive do have a managed time to work on the facilitation of this solution.
Do you and your team have the skills to carry it out?
Some members of our team have more connections and knowledge in legal areas, which could benefit this solution by reaching out and proposing this solution to the government.
Do you and your team have the resources to carry it out (including money)?
The implementation of this solution does not need money, it mainly needs communication skills, alongside a lawyer. We meet the requirements for implementing this project.
Will you and your team be able to get the required support (including approvals from authorities) to carry it out?
Through the help of legal experts and communication, our team do think we will get the approvals in regards to the tax benefit incentive, as it would result in making the Maastricht community better at the end of the day.
Social
Ecological
Local
What would it mean for the people of Maastricht to thrive?
Businesses would have to spend less on tax, with this incentive, they get to pay less tax while investing in something that allows Maastricht to flourish further.
What would it mean for the people of Maastricht to thrive within their local natural habitat?
It would be using financial resources, such as this tax incentive, to pay less, while being able to invest in projects that can aid the additional thriving of Maastricht’s natural habitat.
Global
What would it mean for the people of Maastricht to Respect the well-being of people worldwide?
This solution can encourage investors and businesses to direct their capital towards marginalized communities to uplift them. Suppose their initial plan works out well in Maastricht. In that case, it can be encouraging to invest in other areas such as: funding educational, clean water projects in marginalized regions, and backing global health, food security, and climate adaptation efforts.
Help in areas of their company’s expertise.
What would it mean for the people of Maastricht to Respect the health of the whole planet?
With this solution, Maastricht can encourage investors to channel their successful capital into environmental and ecological projects which aid the world, such as:
Reduction of carbon emissions through clean energy, sustainable infrastructure, and low-impact housing.
Support the circular economy, waste reduction,
invest in climate adaptation, and aid with biodiversity conservation.
Done By Arta-
