It is for sustainability. Social finance provides capital to social enterprises that are unable to access traditional forms of financing to help them grow and expand their business operations.

Social finance is one of the initiative have taken by the US Government during financial crisis of 2008. Social finance provides private capital to increase size of Socail enterprises.Social enterprises mainly focus on non profit orirnted services. Social finance is distinct from traditional finance. Traditional finance institutions used to provides long term and short term finance to individual and institutions who will use that money to generate income.

Question-1: Traditional finance institutions used to provides finance to profit oriented institutions only and size of traditional finance institution are very big compared to social finance providers.Hence, it is difficult to get support from traditional finance institutions.

Questin-2: without support there will be no development. So, if there is no financial support it will not possible to increase size of social enterprises and it leads to get facets of social and environment.

Question-3: Financial ecosystem will support to provide sound capital allocation.If there is effective financial ecosystem to social finance it will be assist to enhance to size of social enterprises to curb the adverse effect of social and environment somextent.

Finally, as per your questions i hope that above explanations are useful.

While social finance is not the only support system for social enterprises, it is a critical enabler that helps bridge the gap between traditional profit-driven businesses and non-profit organizations. By providing the necessary financial resources, alignment of values, and capacity-building, social finance empowers social enterprises to create lasting social and environmental impact while also sustaining their operations. As a result, it has become a pivotal part of the social enterprise landscape and a valuable tool for driving positive change.