Is it Challenging to make Impact Investments in India? An Empirical Study

Abstract

This study attempts to determine the most significant challenges impacting various stakeholders in Indian impact investing. The variables have been identified from the existing literature; based on that, 69 variables have been created. The authors attempted to validate the variables by conducting the analysis based on primary data collected from the respondents who are working in Indian impact investing. The data was collected via a questionnaire prepared on Microsoft Forms from the 90 respondents using a 5-point Likert scale. This study is the first to identify the most significant factors impacting the multiple stakeholders. So, to check the validity and reliability of the data, the standard deviation, Cronbach’s Alpha test, Bivariate Pearson coefficient correlation, Kaiser-Meyer-Olkin (KMO) Test for Sampling Adequacy, and Bartlett’s Test of Sphericity have been applied. The study also used exploratory factor analysis (EFA) to determine the most critical factors/challenges affecting the various stakeholders in Indian impact investing. The study found that eight of sixty-nine variables are insignificant in the Indian impact investing and have been removed. The remaining sixty-one variables are categorized into the six most critical factors: Access to Capital, Business Model, Compliance, Ecosystem Deficiency, Human Resource, and Investor Management.