State of the Small & Growing Business Sector 2018
by the Aspen Network of Development Entrepreneurs

Since 2009, ANDE has been tracking the growth and impact of the small and growing business sector in emerging market economies for our annual State of the Sector report. This report 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 in the regions covered by each of our eight chapters: the Andes, Brazil, Central America and Mexico, East Africa, East and Southeast Asia, India, South Africa, and West Africa.

Here are some report insights. Check out the report for much more.

Capacity Development Services

• GALI data finds that, in the aggregate, accelerators in emerging markets are a good investment.
• ANDE members providing classroom training almost always bundle this with other types of capacity development services and are highly unlikely to provide this training alone.

SGB Investing

• In 2018, at least 56 new SGB-inclusive investment vehicles launched, with a median target AUM of US $50 million (the highest median target tracked by ANDE to date).
• A large majority of ANDE members are actively engaging in gender inclusive activities; however, only 10% actively use a restrictive screen to avoid exposure to SGBs with poor gender diversity records.

Donor Funding

• This year, ANDE dug deeper into donor funding supporting SGBs in emerging markets and found that multilaterals, bilaterals, and DFIs disbursed $7.4 billion to support SMEs in 2017.
• Using the OECD’s Creditor Reporting System, ANDE found that gender-related SME donor funding is only a small percentage of all SME-related disbursements.

Regional Insights

In 2018 ANDE added a new chapter in the Andean region of Latin America based out of Bogota, Colombia. Find capacity development, investing, and donor funding insights on this new chapter, as well as ANDE’s 7 other regional chapters, in the regional insights section of the report. 

Read the digital report now!

Banking in Africa - Delivering on Financial Inclusion, Supporting Financial Stability
by the European Investment Bank (EIB) 

In its fourth edition, this report focuses on recent developments in Africa’s banking sectors and the policy options for all stakeholders. The study of banking sectors across all African sub-regions includes the results of the EIB survey of banking groups operating in Africa. Three thematic chapters address challenges and opportunities for financing investment in Africa: (a) Crowding out of private sector lending by public debt issuance; (b) The state of bank recovery and resolution laws in Africa; and (c) Policy options on how to finance infrastructure development. The report finds that in many African banking markets, the last two years saw a pause in financial deepening. However, a rising share of banking groups report improving market conditions and plan a structural expansion of their operations in Africa and a continued push for new technologies.

Just Good Investing: Why gender matters to your portfolio and what you can do about it

There is growing evidence and collective understanding that gender equity is good for investment, good for businesses, good for society. However, this understanding still has not translated into widespread action in the investment world, often because investors are unsure how to incorporate gender into their analyses.

To address this, the report conducts an analysis of Calvert Impact Capital's private debt portfolio over the past eleven years examining the relationship between gender diversity at the board and leadership level and financial performance. It reveals a strong relationship between gender diversity in leadership positions (senior management) and financial performance. It also shares practical guidance and tools for creating a gender inclusive investment strategy. Read the full report

What Have We Learned: Financing Social Businesses in Uganda

Financing and supporting early-stage businesses in Uganda is not an easy task. Social businesses in the early growth stages require patience and support to hone their model and serve more people. In this report with USAID, YUNUS Social Business looks critically at their venture philanthropy fund in order to share their learnings from their portfolio and investment and support strategy. The report describes their investment processes, strategies, and their new criteria moving forward. Learn more.

Financial Inclusion: Technology, Innovation, Progress

From innovative technology to increased engagement by the private sector, several exciting trends are propelling the world’s impressive gains in financial access, according to the newly released annual report from the UNSGSA. The report also details the many ways in which financial inclusion is driving progress on the development goals.

Despite this progress, however, gaps remain—most notably among women and the poor—and account usage lags behind access. The report details the UNSGSA’s ongoing efforts to address these issues through three key areas of work: ensuring usage and development impact, reaching neglected populations, and creating the right environment for technology-enabled financial inclusion. Read the full report.