State of the sector and how they see C&E Learning Lab as an opportunity for the ecosystem

There is growing interest in small and growing businesses (SGBs) that address environmental challenges through innovations in energy, circularity, agriculture, and water. However, green SGBs face distinct barriers to growth. 

Many green SGBs start as informal enterprises with limited systems for financial management, compliance, and strategic planning, and require targeted support to refine business models and scale. Most incubators and accelerators are not equipped to address the specific needs of green SGBs.

Access to finance is also a major challenge. Green SGBs often rely on emerging technologies or business models whose viability is not yet established, making lenders hesitant. Green SGBs are frequently stuck in the “Missing Middle,” needing amounts too large for microfinance to provide, but too small or perceived too risky by commercial banks. Even available green finance tends to favour mitigation and more mature sectors like renewable energy and infrastructure. Green SGBs also have limited support systems, making peer networks, partnerships, and forums to elevate their criticality.

The ANDE C&E Learning Lab is a good example of support systems that could help address the challenges faced by SGBs. Capacity building through training and tools can help green SGBs build relevant skills. Learning forums are critical for SGBs to hear from each other and form networks and partnerships that they can leverage even outside of the C&E learning sessions. Additionally, it brings in a holistic approach through improving awareness of other stakeholders—such as philanthropy, investors, and policymakers—which is important for creating an enabling environment and ecosystem to support SGBs.

Your ongoing programs supporting entrepreneurship and how others can collaborate with your organization

FSG supports entrepreneurship by working closely with stakeholders across the ecosystem. We help scale market-based solutions that address social and environmental challenges, including handholding inclusive SGBs to build strong, scalable business models. Our work combines direct support to SGBs—through guidance and long-term handholding—with efforts to remove ecosystem barriers that limit their growth through dissemination and advocacy.

We partner with philanthropy, incubators, and accelerators focused on advancing green entrepreneurship to refine their strategies and better address the needs of green SGBs. This includes deep engagement to understand entrepreneurs’ challenges to incorporate these into strategy development, testing of strategies with them to assess alignment with their needs, and ongoing learning and evaluation to improve program effectiveness.

We also strengthen collaboration across the ecosystem. For example, we helped launch the Saamuhika Shakti collective in Bengaluru to improve the lives of waste pickers. Through convenings and workshops on topics such as circularity and just transitions, we create platforms for SGBs across the value chain, philanthropy, and supporting initiatives to co-develop and implement solutions that advance green entrepreneurship, and disseminate these solutions through our knowledge products.

What advice do you have for aspiring entrepreneurs looking to create environmentally conscious businesses?

• Target high-potential sectors where environmental impact and market demand are both strong.
• Understand customer needs and design solutions that respond to them—using human-centered design where relevant. Keep gathering feedback and refining the offering on an ongoing basis.
• Adopt a systems lens when designing the business model—consider suppliers, distribution channels, and how the product or service fits into the broader ecosystem.
• Measure and communicate impact regularly. Demonstrating environmental benefits can differentiate the business with investors, funders, and customers. Also highlight the business gains from sustainability efforts, for instance cost savings from resource efficiency.
• Build strong networks with peer SGBs and ecosystem actors. These relationships foster learning, market insights, and future partnerships that support growth.

Just Climate Transitions in Bangladesh: Accelerating Multistakeholder Action in Textile and Apparel and Construction Industries

Developed with support from the H&M Foundation and Laudes Foundation, and with inputs from 100+ Bangladeshi and international stakeholders, this report, outlines opportunities to accelerate just transitions in the textile and apparel, and construction sectors.

Key Takeaways

• While climate change and the need to rapidly decarbonize is certain, multiple uncertainties could impact the pace of decarbonization of these sectors, the ability of these sectors to adapt to climate change, and the resulting outcomes for workers.
• Seven interlinked priorities need to be pursued simultaneously to accelerate Bangladesh’s transition towards a more just, low-carbon, and climate-resilient future.
• Industry, worker rights organizations, policymakers, development organizations, skilling providers, finance, and philanthropy will need to work collaboratively to shift and accelerate the trajectory towards these best-case scenarios.