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Comparative analysis reveals structured capital reinvestment drives sustainable social impact in development ecosystems, highlighting enterprise-driven philanthropy as a scalable model.
This paper introduces Enterprise-Driven Philanthropy (EDP), a framework proposing that sustainable social impact is determined not by the volume of capital deployed, but by the way that capital is structured, governed, measured, and reinvested. Traditional philanthropy and Environmental, Social and Governance (ESG) investing have each made significant contributions to global development, yet persistent structural challenges, including poverty, unemployment, and weak industrial capacity, remain largely unresolved. EDP proposes an alternative: treating capital as a productive asset deployed through disciplined ownership, operational accountability, and continuous reinvestment to build self-sustaining economic ecosystems. Drawing on established literature in blended value, impact investing, private equity, and industrial policy, alongside practical illustration, this paper compares EDP with traditional philanthropy and ESG investing across accountability, capital deployment, and long-term value creation. It concludes by positioning EDP not as a replacement for existing models, but as an evolution designed for situations where the objective extends beyond immediate relief toward lasting economic transformation.
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Daniel Mangena (2026) studied this question.
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