This paper investigates to what extent and how micro, small and medium-sized enterprises (SMEs) in developing countries are adapting to climate risks. We use a questionnaire survey to collect data from 325 SMEs in the semi-arid regions of Kenya and Senegal and analyze this information to estimate the quality of current adaptation measures, distinguishing between sustainable and unsustainable adaptation. We then study the link between these current adaptation practices and adaptation planning for future climate change. We find that financial barriers are a key reason why firms resort to unsustainable adaptation, while general business support, access to information technology and adaptation assistance encourages sustainable adaptation responses. Engaging in adaptation today also increases the likelihood that a firm is preparing for future climate change. The finding lends support to the strategy of many development agencies who use adaptation to current climate variability as a way of building resilience to future climate change. There is a clear role for public policy in facilitating good adaptation. The ability of firms to respond to climate risks depends in no small measure on factors such as business environment that can be shaped through policy intervention.
Join us as we continue the climate action conversation with a more strategic focus on the challenges and solutions for financing climate enterprises in West Africa.
In September 2021, The Lemelson Foundation and ANDE partnered to produce a new report, Climate Entrepreneurship in Developing Economies: Funder Perspectives on Approaches, Challenges, and Opportunities. In an exclusive interview following this publication, Executive Director Rob Schneider, Program Officer Maggie Flanagan, and Communications Officer Pam Kahl share more insights and calls to action for other funders. As the world gathers for COP26, this is particularly important.
Small businesses not only create jobs, but also can develop and deliver solutions to help us get to net zero faster. ANDE’s vision is where small and growing businesses are fully supported to optimize their role in mitigation efforts, local adaptation, and support a just economic transition.
This Learning Brief offers a clear justification for the role of development assistance organizations like USAID in catalyzing private finance for climate action. It synthesizes lessons learned from a broad set of donor experiences and offers
practical ‘how to’ descriptions of donor-supported activities that lead to additionality and positive climate and human impacts.This is one of three complementary resources that includes a set of case studies that examine various models of blended finance for climate action and a guidance note that provides a framework for understanding the potential for additionality and human impacts for blended finance from USAID’s perspective.
As a crucial driver for innovation and sustainable development, entrepreneurship plays a vital role in growing solutions to mitigate and adapt to climate change. They are especially significant in developing Southeast Asian economies, where micro, small and medium enterprises (MSMEs) contribute up to 97% of national employment in the region.
Join us for a conversation on how Entrepreneurial support organizations can work together to create a more robust ecosystem to address climate change priorities in the region!
To understand the network’s current level of support for climate entrepreneurship, ANDE identified which of its members work in climate adaptation, mitigation, and resilience and mapped where and how this support is being provided. Data were collected between March and August 2021 through a survey of ANDE’s member organizations as well as supplementary desk research. While the analysis in this snapshot is static, the information is meant to serve as a catalyst for greater climate action in the SGB sector.