We believe that investing in high growth SMEs in developing countries is economically viable if done right. The higher risk of investing overseas is set off by higher possible returns that investments in new emerging markets bring with them. Managing these investments is complex, but there are innovative ways to do that more efficiently.

Economic reasoning would be enough to consider the above mentioned investments. But besides that these investments have a significant impact on the economic and social development in these countries. 1.5 million investment in SMEs does not seem much, but when you consider, it creates over 1000 meaningful jobs in sustainable businesses and supports a multiple of family and community members, it certainly makes a difference.

Therefore “economic investments” in high growth SMEs can also be seen as “social investments” that might bring a financial return. The Dutch Internal Revenue Service (Belastingdienst) considers these investments as “philanthropy” and they are, therefore, tax deductable when structured right. This means you have about 50% more capital to invest.

To make your investments tax deductable, you need to either set up your own private philanthropic foundation (stichting) and get “AMBI” status from the Revenue Service, or join one of the existing ones. The capital you “give” to the foundation is tax deductable. The foundation invests in high growth SMEs and if the investments make a profit, this is added to the capital of the foundation. The additional capital can be used for other philanthropy uses.
BiD Network can introduce you to some experts in philanthropic foundations, who are able to advise you and set up such a foundation for free. BiD Network can help you select, invest and manage your investments in high growth SMEs. It’s what we do day in-day out.

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