A key challenge in empowering women in extreme poverty through entrepreneurship is securing access to capital for business growth after training. Small and microenterprises often face exclusion from formal financial systems due to a lack of traditional credit data, guarantors, and financial statements, resulting in high-interest informal loans ranging from 80% to 300%. This report examines the potential of a credit scoring system using alternative data such as peer group (Chama) lending performance and business income to assess creditworthiness. The goal is to demonstrate that alternative data can unlock capital from local financial institutions for women entrepreneurs at scale.
The McKinsey Global Institute aggregated a richly granular data set of micro-, small-, and medium-size enterprises (MSMEs) and large companies across 12 broad sectors, 68 level-two subsectors, and more than 200 level-three subsectors for 16 countries that account for more than half of global GDP.
In these countries, MSMEs on average have only half the productivity of large companies, and less than that in emerging economies. Raising MSMEs to top-quartile levels relative to large companies represents value equivalent to 5 percent of GDP in advanced economies and 10 percent in emerging economies.
Micro-, small, and medium-size enterprises (MSMEs) are crucial to economies, accounting for two-thirds of business employment in advanced economies and nearly four-fifths in emerging ones. They contribute half of all economic value added and play a key role in preserving competitiveness in globalized economies. However, MSMEs' productivity is only half that of large companies, with a more significant gap in emerging markets. Closing this gap could add 5% to GDP in advanced economies and 10% in emerging ones. Strategies to boost MSME productivity require tailored approaches to specific subsectors and countries. Collaboration between MSMEs and large companies is a win-win strategy that often leads to mutual productivity gains, as seen in sectors like automotive and software development. All stakeholders must develop targeted strategies, enhancing infrastructure, policies, and networks to support both MSMEs and large enterprises.
Kenya's waste management and circularity sector offers significant opportunities for investors, driven by economic growth, increasing waste generation, growing regulations and innovations. This introductory guide is the first in a series that also includes investment guides that deep dive into each of the highest opportunity sub-sectors in Kenya’s waste and circularity sector: plastic waste, wastewater, organic waste and integrated waste management. These guides provide further information on trends, opportunities, policies and challenges, as well as further details on the main identified business models and their financing needs and case studies of successful businesses.
This landscape guide is intended to outline India’s current context in recycling and circularity, with a focus on the investment potential, opportunities and business models in the ten most significant waste streams in India. It provides a framework for how investment potential in a waste stream can be determined, which covers five areas that define that potential: market size and growth; investable start-up pipeline; product readiness; policy support; financing needs and gaps. The guide also includes a historical outline of investments and funding in each waste stream and outlines the roles and participation of various types of equity funders, along with the potential and participation of non-dilutive funding options.
¿Cómo pueden los donantes ayudar y no obstaculizar a las organizaciones que ejecutan sus programas e iniciativas? Esta es una gran pregunta, y una que muchas organizaciones en ambos lados de la relación donante-beneficiario están explorando. Sin embargo, enfocarse en el crecimiento de las organizaciones que brindan el servicio desafía muchas prácticas arraigadas en el proceso de subvenciones. Este reporte, aquí resumido, responde a este tema mirando a una instancia específica de esta dinámica más amplia - cómo los donantes trabajan con las Organizaciones de Apoyo Empresarial (ESOs, por sus siglas en inglés). En los países de bajo y mediano ingreso, esta relación donante-ESO tiene significancia para el desarrollo de las PYMEs y el crecimiento económico.
The 6th edition of the Global Micro, Small, and Medium Enterprises (MSMEs) Report by the International Council for Small Business (ICSB) focuses on the transformative role of youth and women entrepreneurship in enhancing supply chains and driving sustainable development. Aligned with the United Nations' Sustainable Development Goals (SDGs), the report highlights the innovative spirit and resilience of young and women entrepreneurs in fostering inclusive growth and equitable opportunities. It emphasizes the concept of humane entrepreneurship, which goes beyond profit to prioritize empathy, ethical practices, and social impact. By exploring inspiring stories, research findings, and practical insights, the report calls for a people-centric approach that nurtures enterprises and champions sustainable practices. It aims to inspire entrepreneurs, policymakers, and stakeholders to support MSMEs in creating a more inclusive and sustainable future, where these enterprises can thrive and drive positive social and economic change.
The Impact Investors Council (IIC) aims to drive private capital towards market-based models for social impact in India. This report, "Year in Retrospect: India Impact Investing Trends," provides insights into 2023's investment landscape across key sectors such as agriculture, climate tech, healthcare, education, financial inclusion, and technology for development. In 2023, equity investments in Indian impact enterprises totaled $2.90 billion, down from $6 billion in 2022, reflecting a global venture capital slowdown rather than India's potential as an impact investment destination. With over 1.4 billion people, there is vast scope for innovative solutions in underserved sectors, especially with rising digital penetration in rural areas. This report highlights the opportunities for scaling impactful solutions that address critical development challenges in India and aims to guide asset owners, managers, and policymakers in understanding and engaging with India's impact investing market.
This report by This is Africa surveyed European and US limited partners, such as pension funds and insurance companies, to explore their views on emerging markets and socially responsible investing (SRI). While 65% of investors allocate to emerging markets, less than 30% target Africa-focused funds, with many deterred by concerns over governance, transparency, and political risk. Opinions on investing in Africa are split. The report reveals a limited understanding of SRI. Only 39% of investors monitor social impact, and 60% see SRI as merely excluding unethical investments rather than actively driving change. Impact investing is poorly understood, with just 32% familiar with the concept. Though 25% would accept lower returns for proven social benefits, most investors remain skeptical due to insufficient data. This report aims to highlight these gaps in knowledge and encourage further discussion.
The report by the Enrich in Africa Center (EiA-C) highlights the importance of funding innovation ecosystems in Africa to develop scalable solutions for local challenges. It analyzes grant funding data from 2020 to 2023, focusing on the nine largest funders active in Africa, and incorporates insights from interviews with key stakeholders. The report examines both the overall innovation funding landscape and specific funding for ecosystem support activities and organizations. It aims to equip funders and recipients with the necessary data and insights to create sustainable and impactful innovation ecosystems across Africa. EiA-C plays a pivotal role in bridging the gap between funders and recipients by fostering connections and sharing knowledge within the ecosystem.