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Abstract Social innovation will be essential for addressing today's complex social and ecological challenges. Social entrepreneurs involved in the generation and implementation of innovative endeavours have repeatedly pointed to the critical need for financial support. However, mainstream financial institutions and practices have tended to marginalize both the social entrepreneurs and the individuals and communities who may benefit the most from a variety of social innovations, largely due to perceived risks associated with return on investment. Significant barriers and disincentives exist within current mainstream economic structures despite a growing interest and willingness of some individuals and organizations capable of channelling private capital into innovative social and environmental products or processes. This article provides a conceptual framework for bridging social innovation theory and social finance practices in order to develop an improved understanding of the conditions most conducive to the success of social finance and social innovation.
Moore et al. (Mon,) studied this question.