Challenges to impact investing in a developing country: evidence from Chile

This study discusses the impediments and challenges to the growth of impact investing in a developing country. The authors define a set of 7 possible obstacles by establishing a conceptual framework for impact investing. The obstacles are tested through 24 interviews with different players within the Chilean entrepreneurial ecosystem, confirming impediments such as the early stage of market development, the scarcity of suitable investment deals, overdependence on public funding, a paucity of intermediaries and specialised business supports, and the lack of impact measurement practices. Our findings represent a step forward in understanding and supporting the growth of impact investments in developing countries.