The need for Social Stock Exchanges arises from several factors:

• Investment Demand in the Human Development Sector: Social enterprises focused on addressing social and environmental issues often face challenges in raising adequate funds. The SSE aims to meet this demand by providing a specialized marketplace for impact-oriented investments.
• Fund Crunch for Social Enterprises: Social enterprises typically struggle to secure funding due to the unique nature of their missions. The SSE offers a dedicated segment on the BSE, allowing these enterprises to attract investment from impact-focused investors who understand and value their social objectives.
• Transparency and Accountability: The SSE promotes transparency and accountability by requiring listed social enterprises to report on their social and environmental performance. This ensures that investors and donors have a clear understanding of the impact their contributions are making.
• Synergy between Investors and Investees: The SSE facilitates a closer alignment between investors and social enterprises in achieving social aims. Investors seeking to make a positive impact can choose from a diverse range of social enterprises and invest in organizations that align with their values and objectives.
• Performance-Based Philanthropy: Social Stock Exchanges introduce a performance-based approach to philanthropy. Donors can invest in social enterprises based on their demonstrated impact and outcomes, encouraging organizations to focus on measurable results and creating a culture of effective philanthropic practices.