Resource Type
Research

This content is also available in: Español, Português

"The study (i) reviews the definitions and concepts of social enterprises, (ii) outlines the landscape across 10 selected countries in Asia and Latin America, (iii) discusses challenges to scaling as faced by social enterprises, and (iv) presents suggestions for development banks to extend support to social enterprises through public and private sector investments. The study categorizes social enterprises and argues that the comparative advantage of development banks is to support selected social enterprises that are commercially bankable and have the base of the pyramid (BOP) at the core of their business operations. Development banks can support these enterprises-considered as the inclusive businesses of the future-through investing in impact funds and/or public sector loans."

READ MORE

"Impact-oriented accelerators, a relatively new type of entrepreneur support program, are proliferating as practitioners, philanthropic funders, and investors work to unlock the full potential of entrepreneurship-led economic development. These accelerators aspire to support entrepreneurs, in large part by driving investment into promising ventures that work in marginalized sectors and regions around the world. Given the opportunity costs of the human, organizational, and financial resources required to run accelerators, it is important to determine whether they are having this intended impact. To assess the effect of acceleration on outside equity investment, we analyze application and follow-up data from a matched sample of 1647 entrepreneurs who applied to 77 impact-oriented accelerators. Our main finding is promising. In the first follow-up year, accelerator program participants attract significantly more outside equity than their rejected counterparts. Further analysis suggests that this positive equity bump is not due to cherry picking obviously promising ventures during selection processes. Moreover, the effect is tied to the number of accelerated months in the follow-up year. Despite these promising observations, we find that the equity investment effect does not extend to ventures working in emerging markets, or to those with women on their founding teams. Thus, the benefits of accelerators for entrepreneurship-led development are not yet reaching the places and people that have the hardest time attracting capital on their own. We conclude the paper by outlining the challenges associated with extending the positive effects of acceleration into entrepreneurial domains that are most challenging from an economic development perspective."

READ MORE

"Inadequate sanitation negatively affects the lives of billions of people in the base of the pyramid (BoP) in the developing world, and has a particularly substantial impact on the well-being of millions of young children. Given the magnitude of the challenge and the limitations of existing approaches, enterprise-led approaches to providing public goods are generating growing interest. Emphasizing convergent innovation, enterprises targeting the BoP are presented as potentially sustainable and scalable interventions that generate positive poverty-alleviation effects. Yet our understanding of who is affected, and how, remains limited. To begin to address this gap, we apply a multidimensional framework to an urban-based, sanitation-oriented BoP enterprise, focusing on its poverty-alleviation effects on young children. Our analysis indicates that the enterprise's effects include changes in capability, economic, and relationship well-being and that these changes can be positive or negative. We also find that the impact varies depending on the role of the stakeholder in the business model and the age of the child. Our results contribute to a better understanding of how to assess the effectiveness of a sanitation intervention and how to evaluate the poverty-alleviation implications of an enterprise-led approach."

READ MORE

"SMEs are positioning themselves as a strategic branch of banking operations in the region, while banks are increasingly pushing for more active policies when it comes to the financing of SMEs. This is one of the highlighted conclusions from a 2011 joint survey conducted by the Inter-American Development Bank Group's entities dealing with the private sector: the Multilateral Investment Fund (FOMIN), the beyond Banking program of the department of Corporate and Structured Financing (SCF), and the Inter-American Investment Corporation, along with the Latin American Banking Federation (FELABAN).
This report introduces the general results obtained during the fourth survey encompassing the views and opinions of directors, managers and deputies of the SME division of 109 banks scattered across 22 countries in Latin America and the Caribbean. It also includes an itemized analysis of the answers divided by the banks size and location, as well as their interrelations with other trends in that sector."

READ MORE

"Theories of market failures and targeting motivate the promotion of entrepreneurship training programs and generate testable predictions regarding heterogeneous treatment effects from such programs. Using a large randomized evaluation in the United States, we find no strong or lasting effects on those most likely to face credit or human capital constraints, or labor market discrimination. We do find a short-run effect on business ownership for those unemployed at baseline, but this dissipates at longer horizons. Treatment effects on the full sample are also short-term and limited in scope: we do not find effects on business sales, earnings, or employees."

READ MORE

"While the world has made huge economic gains over the past 50 years, this progress has been highly uneven. This is particularly acute in the agriculture sector, with many of the 500 million smallholder farmers around the world living on meager incomes and facing high levels of economic insecurity.

Despite some recent innovations and advances in including smallholders as market players, there have been few cases where truly widespread, market-level, transformative change towards inclusion has been achieved.

In this report, we explore the role of different kinds of capital in bending the arc of agricultural market development towards inclusive growth. We pay particular attention to how impact-focused players deploying capital that is flexible in terms of risk-return expectations can best deploy it in order to catalyze large-scale transformations towards inclusion."

READ MORE

"The express objective of Beyond Dialogue was to help corporations and social enterprises learn more about the ways they could partner with each other to achieve shared goals for sustainable and inclusive business, and to spark new collaborations...This report seeks to answer this desire of event participants by recording and reinforcing the most salient points and stories raised during Beyond Dialogue. It aims to distil useful insights and lessons mainly through a selection of case studies shared by event participants that will allow readers and practitioners to derive what is most relevant and suited to their context and sector. It will then analyse the key findings and lessons from the case studies before concluding on future opportunities for learning and collaboration. This report will hopefully lead to more proactive efforts to develop and expand partnerships that aim to improve the lives of people living in poverty, and to demonstrate how these partnerships can be designed to support both business and social impact goals."

READ MORE

"In an effort to offer greater insight into the practice and utility of capacity building support, this report explores common forms of capacity-building support used by impact investors, many of which resemble forms of nonfinancial support historically leveraged by conventional investors. While both impact and conventional investors use capacity-building support to strengthen the underlying businesses of investee companies, impact investors also use it to enhance and extend their impact. This report outlines various needs that impact investors address through capacity-building support, the ways they structure and deliver such support, and funding strategies used for deploying such support."

READ MORE

"The objective of this research report is to help practitioners understand what systems change means in the context of social entrepreneurship, how it is distinct from direct service or “business-in-a-box” models and, most importantly, what it looks like in practice – not as lofty exhortations and abstract concepts, but as a set of concrete activities, processes, and leadership lessons. Our intent is to move beyond systems theories – which, while useful, can be difficult to apply in a practical context – and instead tell the stories of how these theories can be applied across a range of circumstances. These stories follow six for-profit and non-profit social entrepreneurs in the Schwab Foundation network, working in education, health, consumer rights, land rights, rural development and the informal economy, as their strategies evolved beyond organizational scale – growing the reach of a prescriptive, organizationally designed solution to a problem – to systemic scale, with the goal of shifting the rules, norms and values that make up social systems."

READ MORE

"The purpose of the Beyond the Binary project is to understand and articulate why corporate venturing should matter to corporations and how they might deploy their underutilized capital in pursuit of both profit and purpose. This will involve a deeper understanding of why some companies are holding this cash while others are spending it. It also involves telling the stories of those businesses who are successfully unlocking cash reserves by sharing first-hand accounts, through video interviews with the CV practitioners themselves. Ultimately, this project aims to create long-term impact by inspiring more corporations to allocate more of their capital towards corporate venturing activities which align with the SDGs."

READ MORE