Lessons from the Edge: Investing in BAM Companies
Insights from a BAM Practitioner
Peter has lived and worked in a professional and business capacity for over 30 years throughout Asia, Europe, the Middle East, South and North America and is a pioneer in the business as mission movement. He currently consults on business as mission all over the world and is the CEO of a global investment fund for BAM enterprise in the Arab world and Asia.
Financial capital is only one of many kinds of patient capital needed by business as mission companies
There are seven forms of capital which need to be strategically integrated into a BAM business over a long, patient, persistent timeline in order to achieve the sweet spot of optimal impact. These seven forms of capital: human, intellectual, financial, social, spiritual, infrastructural and natural capital, all need to be strategically integrated in a balance that will be variable for your context. If you are not paying attention to all of these forms of capital, you risk being knocked off the sweet spot and your impact will be diminished.
Return on investment from BAM companies is possible
Although not easy, it is possible to invest with modest expectations of financial return into even the most difficult environments and, risk of loss notwithstanding, see a full return of capital and a modest return on investment. One challenge is finding companies that are investor-ready and able to meet the rigorous standards necessary. However we have found that relationships, based on integrity and trust within the Christian community, bring remarkable risk-reducing benefits. Company owners generally are admirably open and honest in their applications and conduct of their business affairs, and often make significant personal sacrifices in order to serve Christ, and to honor the loan obligations of their companies.
Competent mentoring can make a vital difference for BAM companies
There is a compelling value proposition for BAM companies and their investors in receiving competent, wholistic mentoring. The mentoring provided has been vital in building relationships of trust with the companies, which then facilitates growth and even greater acceptance of advice. Responsiveness to experienced input has enabled companies to grow and develop into better-managed and effective models of Christ-honoring business. Mentoring has been instrumental in early recognition of looming problems, with timely solutions protecting against financial and other loss.
