Equities.com reports on those findings, linking the failure of Generally Accepted Accounting Principles (GAAP) to properly account for either the value contained by tech firms in information, relationships, intellectual property, or "eyeballs" to the value contained in social enterprises like soil remediation, ecological activity, and social capital.
We find this so interesting: we often hear that small, local, sustainable businesses are "hard to value" because of the lack of "traditional" assets, which seemed odd in the light of astronomical valuations for tech firms proudly proclaiming their lack of business model or revenue plans. What do you know, it turns out that most of the entire market's valuation is mostly made up of something else, something special, something "intangible".
Maybe we just need to look in different places to find the "value" and the opportunity for significant increases in that value, in our local sustainable food companies!
Comments are closed.
"Insights" is our blog of case studies, newsletters, podcasts, videos, tips & tools, research, and more at the intersection of food, finance, and social good.