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Research

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"While private sector engagement has long been a part of the global development lexicon, it is taking on new meaning today. Multinational and large national corporations actively shaped the SDGs and are contributing to global development in new and exciting ways. Meanwhile, social enterprises are becoming a critical part of the development ecosystem with their innovative approaches to global development challenges and new market-based solutions.

This special Devex report sheds a light on the relationship between social entrepreneurs and donors, and offers recommendations on what can be done to further strengthen those relationships."

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"Safi Organics is an eco-inclusive enterprise that aims to reverse declining agricultural yields, improve the income and food security of local farmers, and provide opportunities for local youth. Safi Organics has created an agricultural value chain from the local organic waste stream. Using open source technology, the enterprise produces valuable agricultural inputs such as fertiliser and soil treatments designed to meet local conditions.Safi Organics has created a local circular economy that enables farmers to exploit the value of their waste in an environmentally friendly manner, as well as gain access to cheaper fertilisers and soils treatments. Safi Organics also employs a number of local youths, providing them with an income stream, and access to valuable training and experience. This case study is enhanced with short multimedia features that showcase the innovation, the partnership, the support from SEED and the overall impact of the enterprise. It is part of the SEED 2018 Case Study Series, which emanated from the SWITCH Africa Green project "Promoting Eco-Entrepreneurship in Africa", implemented by SEED. This Case Study Series showcases locally-driven, innovative eco-inclusive enterprises which are demonstrating sustainable development on the ground across Africa."

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"This publication identifies ways to catalyse finance for climate technology incubators and accelerators in developing countries. It aims to inform the Green Climate Fund as it develops a request for proposals on climate technology incubators and accelerators. It also aims to inform other financiers and policymakers on opportunities for catalysing financing in this area. It is based on the outputs of a thematic dialogue on incubators and accelerators held in March 2018. It also draws upon an extensive literature review undertaken by these bodies."

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"TechnoServe works in 29 countries across Africa, Latin America, and Asia to assist enterprising people to build competitive farms, businesses and industries. As part of its efforts, TechnoServe partnered with Citi Foundation to implement four pilot projects that aim to address unemployment among women and youth in Africa. This report analyzes the four projects, detailing the lessons learned from each."

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"Smallholder farmers occupy an increasingly important segment of the global agricultural value chain... These smallholders also represent stewards of natural resources that are in need of sustainable management to prevent deforestation and degradation of ecosystems.

This report identifies five primary growth pathways for deploying investment to address smallholder finance demand: (i) replicate and scale existing financing models, such as the one proven by social lenders; (ii) innovate new financial products beyond short-term export trade finance; (iii) finance out-grower schemes of multinational buyers in captive value chains; (iv) finance through alternate points of aggregation in the value chain; and (v) finance directly to farmers."

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"To identify the strengths, weaknesses, opportunities and threats of business incubator models and their potential use in worldwide. Methodology: We studied two international cases: (a) United States, (b) United Kingdom. Findings: The results highlight the similarities and differences between the countries. It adds knowledge for both academics and practitioners who are interested in business incubation. Value: This paper is the first to utilize the SWOT technique to analyze the business incubation field and provides recommendations to implement successful adoption of the incubator's strengths. The potential of Business Incubators who act as models in worldwide and their contribution to the economy, the active role they play in the local, regional and national economic development are discussed. Implications: Adaptation of a Business Incubator Model leads to (1) the support of diverse economies, (2) the commercialization of new technologies, (3) job creation and (4) increases in wealth, given that weaknesses can be overcome."

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"Business incubators (BI) have been established worldwide as tools for company creation and small businesses support. BIs claim to help their tenants by providing them with the optimal conditions for increasing early stage survival and long-term performance. Practitioners and researchers agree that business support is a crucial feature of incubating businesses. Yet this is seldom researched. In this study we theoretically relate business support to help in solving problems and further investigate to what extent business incubators support their tenants overcome their developmental problems. Results show that tenants do not experience many problems and when they do business support is not necessarily sought. Furthermore, our data suggests that business support is not preferentially sought within incubator environments. When this happens, support provided by the BI does not contribute to problem solving. Finally, we discuss the impact of the type of BI on helping their tenants."

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"A large share of the poor in developing countries run small enterprises, often earning low incomes. This paper explores whether the poor performance of businesses can be explained by a lack of basic business skills. We randomized the offer of a free, 48-hour business skills course to female entrepreneurs in rural Mexico. We find that those assigned to treatment earn higher profits, have larger revenues, serve a greater number of clients, are more likely to use formal accounting techniques, and more likely to be registered with the government. Indirect treatment effects on those entrepreneurs randomized out of the program, yet living in treatment villages, are economically meaningful, yet imprecisely measured. We present a simple model of experience and learning that helps interpret our results, and consistent with the theoretical predictions, we find that "low-quality" entrepreneurs are the most likely to quit their business post-treatment, and that the positive impacts of the treatment are increasing in entrepreneurial quality."

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"Market Systems Development (MSD) is an approach to poverty reduction that aims to create long-lasting and large-scale change by stimulating more inclusive growth. To achieve a systemic change vision, market systems programmes often partner with the private sector to introduce new or improved business practices, products and services. Understanding the mechanics of these business models is at the heart of programme success. This paper presents a framework for assessing the efficacy of business models. To help future practice be grounded in reality, we have included detailed business model cases studies from market systems programmes in Afghanistan, Zambia, Kosovo and Nigeria. The paper ends by extracting five key lessons for implementers to improve the way in which they engage with the private sector in building 'win-win' models."

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"Many Climate Smart Agricultural (CSA) technologies fail to achieve their full potential impact due to low levels of adoption by smallholder farmers and difficulties in scaling CSA. This paper presents how small and medium-sized enterprises (SMEs) can act as change agents for the uptake of CSA technologies where their business models may be seen as adoption and scaling mechanisms. Drawing upon our fieldwork in Punjab (India) during which over 100 respondents have been interviewed, critical issues and enabling factors for the business model of two types of SMEs, i.e. farmer cooperatives and individual service providers of climate smart technologies have been identified. Enabling factors supporting adoption are driven by scientific and practical evidence of CSA technologies, good partnership between SMEs and research institutes, good customer relationships and effective channels through farmers' field trials. Critical issues consist of distortive government subsidies on energy and the lack of market intelligence affecting the profitability of the business model. Scaling is enhanced through market intelligence and a favouring regulatory landscape. However, difficult socio-economic circumstances and distortive government subsidies limit the role of SMEs business model as mechanism for scaling."

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