Year
2020

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"As the novel coronavirus, COVID-19, has spread globally, it has left in its wake acute health concerns compounded by economic devastation. The full effects of the pandemic and corresponding economic slowdown are still unfolding - yet already, impact investors' portfolios are experiencing constraints, and the need for further impact investment is rising sharply. To catalyze strategic flows of impact investment capital and position impact investors to support their current investees, the Response, Recovery, and Resilience Investment Coalition (R3 Coalition) launched in May 2020. This initiative represents a collaboration across impact investing networks. One critical component of this initiative is the delivery of market intelligence on financing needs and effective strategies to address those needs. This first brief intends to describe the current state of play for impact investors."

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"As governments from El Salvador to Kenya to India enact strict measures to halt the spread of the coronavirus, what can development organizations do to help micro and small businesses survive? Drawing from TechnoServe’s past experience working with entrepreneurs in times of crisis, as well as early learnings from the response to the coronavirus pandemic, we’ve put together this quick guide of ideas for supporting these enterprises."

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"This report is the first of its kind to understand the landscape of Angel Investment Networks in Southeast Asia and explores the challenges and opportunities for angel investors in the region. The report also places a special focus on Gender Lens Investing and the drivers for angel investors to make gender-focused investments to contribute to the development of an inclusive entrepreneurial ecosystem in Asia. This research aims to support the development of the angel investment market in Southeast Asia through three key approaches: First, it aims to Complete a mapping of established Angel Investment Networks (AINs) across Southeast Asia (SEA) that are actively investing in early-stage enterprises. Secondly, the report identifies and analyzes key aspects and good practice of active AIN structures and impact models in Southeast Asia. Finally, it provides a general overview of where and how Gender Lens Investing (GLI) practices take place across AINs in Southeast Asia to further advance the implementation of GLI in the region."

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"We assess whether imperfect knowledge of labor regulation hinders job creation at small and medium-sized firms. We partner with a labor law expert that provides information about labor regulation via newsletters and access to a specialized website. We randomly assign 1800 firms to get access to this service for a 21-week period. Six months later, the average employment level at treatment firms was 12% higher than at control firms. The intervention decreased the perception that labor regulation is a constraint to hiring and increased optimal employment level."

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"The purpose of this study is to explore how do the characteristics of technology business incubators (TBIs), their chief executive officers, selection process and incubation process influence their research and development (R&D) contributions to the national economy.

These research questions are probed based on primary data gathered from 65 TBIs located in Bangalore, Chennai and Hyderabad, 3 of the leading start-up hubs of India comprising 9 accelerators, 31 incubators and 25 co-working spaces. Stepwise (backward elimination) regression method has been applied for six regression models for the analysis of research objectives."

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"This guide shows how large companies can collaborate with other actors to build business ecosystems that enable small and medium sized companies (SMEs) to thrive. Based on concrete examples, it establishes elements of “Market Building Collaboration” and points out an agenda for action for large companies, the public sector and SME support institutions."

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"This report outlines the key characteristics, influencing environment and needs of women-owned businesses in order to support investors and technical assistance providers in Africa to adopt a gender lens within their current practices and policies. The paper summarizes the findings from primary field research conducted in three areas: technical and business support, financial support, and gender specific considerations. The report also includes considerations for investors and technical assistance or business service providers when adopting a gender lens with their current practices and policies within the three areas. "

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"Recent field experiments demonstrate that advice, mentorship, and feedback from randomly assigned peers improve entrepreneurial performance. These results raise a natural question: what is preventing entrepreneurs and managers from forming these peer connections themselves? We argue that entrepreneurs may be under-networked because they lack the necessary social skills- the ability to communicate effectively and interact collaboratively with new acquaintances-that allow them to match efficiently with knowledgeable peers. We use a field experiment in the context of a business training program to test if a short social skills training module improves who the participants choose to learn from within the program. We find that entrepreneurs who were exposed to the social skills training formed 50% more relationships with peers. These relationships exhibited more matching based on managerial skill and were more ethnically diverse. Finally, the training also substantially increased entrepreneurs' business performance. Our findings suggest that social skills help entrepreneurs build relationships that create value for both themselves and their peers."

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"ANDE has been tracking the growth and impact of the small and growing business (SGB) sector in emerging market economies for our annual State of the Sector report since 2009. The analysis examines global trends in support for small and growing businesses through capacity development services, direct private investment, and donor funding, as well as specific trends by region. The latest report provides a retrospective summary of key developments and trends in the sector in 2019 and relevant insights based on initial data and emerging information on the potential impact of the COVID-19 pandemic on those trends in 2020."

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"Despite the popularity of business training among policy makers, the use of business training has faced increasing skepticism. This is, in part, fueled by the fact that most of the first wave of randomized experiments in developing countries could not detect statistically significant impacts of training on firms' profits or sales. This paper revisits and reassesses the evidence for whether small business training works, incorporating the results of more recent studies. A meta-analysis of these estimates suggests that training increases profits and sales on average by 5 to 10 percent. The author argues that this is in line with what is optimistic to expect given the relatively short length of most training programs, and the expected return on investment from the cost of such training. However, impacts of this magnitude are too small for most experiments to detect statistically. Emerging evidence is provided on five approaches for improving the effectiveness of traditional training by incorporating gender, kaizen methods, localization and mentoring, heuristics, and psychology. Training programs that incorporate these elements appear to deliver improvements over traditional training programs on average, although with considerable variation. Given that training delivers some benefits for firms, the challenge is then how to deliver a quality program on a cost-effective basis at a much larger scale. Three possible approaches to scaling up training are discussed: using the market, using technology, or targeting and funneling firms."

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