Exploring the perceptions of social entrepreneurs towards impact investments: the influence of goal congruence

Abstract

Purpose – The “impact investments market” in India is expanding as a result of stakeholders’ focus over the past decade on strengthening the supply-side drivers of the industry, often not paying enough attention to the obstacles that can hinder the demand-side of the impact investments, such as social entrepreneurs’ resistance and hesitation. This study aims to identify the factors influencing social entrepreneurs’ intention to seek funding from impact investors. Design/methodology/approach – A standardized questionnaire was used to survey 320 Indian social entrepreneurs using a five-point Likert Scale. Data were analysed using partial least squares structural equation modelling. Findings – The findings revealed that factors adopted from the theory of planned behaviour, namely, subjective norms and perceived behavioural control, exert a positive and significant influence on the social entrepreneurs’ intention to secure funding through impact investments. Similarly, perceived value addition and goal congruence were found to have a positive and significant effect on the intention to use impact investments as a financing option. Research limitations/implications – The first limitation of the study lies in its focus on Indian social entrepreneurs who have already received funding from impact investors. This restricts the generalizability of the findings to social entrepreneurs who lack prior experience in securing such financing. In addition, data from investees of Impact Investors Council -registered firms may not represent the broader social enterprise landscape. Notwithstanding these drawbacks, the study’s findings offer valuable insights into the factors influencing social entrepreneurs’ intention to finance using impact investments. Originality/value – This study is unique as it explores cognitive and social factors that might facilitate social entrepreneurs’ adoption of impact investments. Impact investors now possess an increased understanding of the factors that influence social entrepreneurs’ intention to use impact investments. As a result, effective strategies for motivating social entrepreneurs to take advantage of impact investments can be proposed. © 2025 Emerald Publishing Limited