As the idea of social businesses has gained traction in recent years, more funding has become available to invest in market based solutions to some of the most pressing social issues. In November 2010, J.P. Morgan and the Rockefeller Foundation released a report which estimates that the impact investing industry presents an investment opportunity of between US $400bn and US $1 trillion with profit potential between US $183 bn and US $667 bn. Yet in theirobservations from the 2011 World Economic Forum's Global Agenda Council on Social Innovation, the Schwab Foundation pointed out that at this stage "the market is not ready to absorb commercial capital on anything close to the order of magnitude being talked about". Atthe same time, according to Beyond Profit Social Enterprise, 50% of social businesses do not find funding due to lack of firmly established business models, lack of knowledge on how to fundraise, inability to find like-minded investors, and a lack of investors who are willing to fund startups. Asad Mahmood summed up the situation by pointing out that "there are fairly limited investable ventures". There is a clear mismatch between two sides of the social enterprise spectrum- investors and entrepreneurs. Understanding what makes an early-stage social business investable and where the biggest gap between entrepreneurs and investors lies is the primary goal of this research paper. To illustrate this gap, this paper tested the Village Capital model where entrepreneurs are given the unique opportunity to make investment decisions and allocate investment to one or more of their peers, much like microfinance. The hypothesis is that entrepreneurs will apply an evaluative framework to their peers that will enable them to allocate funding to the most profitable and impactful organization, as would an investor.