Replication of Intellecap’s Ecosystem Based Approach in East AfricaPublished: July, 2018
The Financial Lives of Government Employees – Potential of Digital Finance in Sierra LeonePublished: July, 2018
Nudging The Investment Ecosystem By Incentivizing ImpactPublished: June, 2018
Nudging The Investment Ecosystem By Incentivizing Impact
PUBLISHED: June, 2018
Opportunities in Incentivizing Impact in Financing Small and Growing Businesses in Developing & Emerging Markets
This paper is a summary of fresh ideas on how to channel more capital into impact investing and incentivize impact creation. Building on insights generated by experts at the BMZ hosted conference Financing Global Development – Leveraging Impact Investing for the SDGs, the paper furthers the conversation on Impact Measurement and Management, IMM 2.0, through brainstorming practical ideas and viewpoints in the impact investing value chain: those who provide capital, those who manage it, and those who receive it. This included close to 50 stakeholders, including fund managers, DFIs, intermediaries, entrepreneurs, governments, CSOs and others.
The discussion, conducted in the form of a ‘design lab’ by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH, Intellecap, and the Swiss Agency for Development and Cooperation (SDC), aims to start a conversation on how to maximize impact by channeling capital into small and growing businesses (SGBs) as a way to expedite achievement of SDGs (Sustainable Development Goals). During the session, industry leaders like FMO, Vox Capital, and Roots of Impact had shared case studies of good practices in incentivizing impact along the investment chain. This formed the basis of brainstorming on development of new ideas on innovative instruments that could nudge the ecosystem towards more actively pursuing and scaling impact.
The result is an analysis of the barriers in the impact investment value chain highlighted during the stakeholder conversations, and key insights on how to overcome them (for example, the need for transparency, standardization, leadership, etc.). In addition, the workshop collated a list of potential ‘wild ideas’ to like impact currency, impact rewards, impact index, online market places for impact auctioning, and a give-back distribution impact support system, designed to incentivize increased levels of investment along the value chain. The practical approaches suggested by stakeholders fit well with the existing impact measurement and monitoring frameworks like GIIN’s IRIS and Intellecap’s PRISM and hold the potential to guide impact capital more efficiently by leveraging good practices.
The Financial Lives of Government Employees – Potential of Digital Finance in Sierra Leone
PUBLISHED: July, 2018
This report documents findings from research on the financial lives of government employees in Sierra Leone, commissioned by the Government to People Payments Project – Building Digital Ecosystem funded by USAID. Intellecap supported UNCDF, Government of Sierra Leone and Bank of Sierra Leone for conducting the research.
There are 80,000 government employees in Sierra Leone who receive salaries digitally in their bank accounts. Insights about their financial lives can help build a viable business case for DFS to expand access to a wide range of financial services for underserved communities in Sierra Leone. Such insights can inform strategies and use cases that the UNCDF and the Government of Sierra Leone can develop to promote DFS in the country. The National Strategy for Financial Inclusion 2017 – 2020 also refers to the need to identify and digitize use cases that will lead to habitual usage, and achieve Sierra Leone’s commitments to the ‘Better Than Cash Alliance’.
Recognizing the need and opportunity, UNCDF supported the Financial Lives Survey of government employees who receive their salaries digitally in Sierra Leone. Intellecap designed the survey to understand how government employees utilize salaries transferred into their bank accounts, their awareness of and access to DFS, avenues to use them and their perceptions about financial services and digital financial transactions. This report contains insights from the survey about potential customers of DFS and recommendations on use cases that could be piloted as an initial step to improve DFS adoption in Sierra Leone.
Replication of Intellecap’s Ecosystem Based Approach in East Africa
PUBLISHED: July, 2018
Intellecap has sought to replicate its ecosystem-based approach to East Africa by bringing
together capital, knowledge and networks to support SGBs at two levels: (i) provide direct support
to SGBs in the form of acceleration, fund-raising, technical assistance, innovation transfer, and
market linkages, and (ii) discover and engage critical ecosystem players such as corporations
(both local and international), accelerators, other development sector players in supporting SGBs.
In the three-year period since the launch of our initiative to replicate our ecosystem-based
approach for accelerating entrepreneurship support to SGBs in East Africa, we have received
generous support not only from our funders, but also from a number of local and international stakeholders such as development institutions, private sector entities, and industry associations.
Over the last year, we have replicated our advocacy platform (Sankalp), angel investment network
(I3N) advisory services (consulting & investment banking), virtual incubation platform
(StartupWave) and impact measurement platform (PRISM) as envisaged at the beginning of our
programmatic support. The development and adaptation of StartupWave for East Africa has
resulted in over 450 sign-ups for our early stage enterprise support activities and partnerships with
over 30 incubators / accelerators. Similarly, PRISM, our impact measurement platform, has
garnered interest from a wide variety of players to measure the impact of their programs.
Financing India’s MSMEs – Estimation of Debt Requirement of MSMEs in IndiaPUBLISHED: April, 2019READ MORE
Assessment of State of Risk Finance for MSMEs in IndiaPUBLISHED: April, 2019READ MORE
Sankalp Global Summit 2018 | Post Event ReportPUBLISHED: April, 2019READ MORE
Sankalp Africa Summit 2019 | Post Event ReportPUBLISHED: April, 2019READ MORE
Investing to ConnectPUBLISHED: April, 2019READ MORE
The Indian Social Enterprise Landscape StudyPUBLISHED: February, 2019READ MORE
The Global Landscape of Gender Lens InvestingPUBLISHED: February, 2019READ MORE
Innovative Health FInancing Models for Universal Health Coverage in KenyaPUBLISHED: February, 2019READ MORE
By Women – for Women: Building the Childcare Ecosystem in IndiaPUBLISHED: December, 2018READ MORE
Women Investing in Women: A Case for Gender Lens Investing in IndiaPUBLISHED: December, 2018READ MORE
Financing India’s MSMEs – Estimation of Debt Requirement of MSMEs in India
PUBLISHED: April, 2019
This study aims to provide an assessment of the Micro, Small and Medium Enterprise sector finance in India. The chapters in the study highlight the key characteristics of the MSME sector, and assess the demand for, and the flow of credit into the sector. The study also evaluates the consequent gap in the financing needs of MSMEs. Finally, it explores potential interventions to boost the flow of formal credit to the sector. This study is an update to IFC’s ‘Assessment of MSME Finance in India” Report which was earlier published in Nov, 2012. (This Report is based on research and analysis of available demand and supply data from 2017).
Assessment of State of Risk Finance for MSMEs in India
PUBLISHED: April, 2019
This study aims to assess the state of risk capital finance to the MSME sector in India. It focuses on analyzing the forms, sources and availability of risk capital products, such as equity, venture debt and unsecured debt to the sector. It estimates the gap in the demand and supply of risk capital to the sector, with a focus on equity capital (in the form of private equity, venture capital and angel investments). It also assesses the relevant enabling environment and supporting policy infrastructure, and in conclusion, provides recommendations and potential interventions to mitigate the demand-supply gap in MSME risk capital financing. (This Report is based on analysis of research and available demand and supply data from 2017).
Sankalp Global Summit 2018 | Post Event Report
PUBLISHED: April, 2019
In 2018, Sankalp celebrated 10 years of building entrepreneurial ecosystems across the world for business led inclusive development. 2018 was a year to celebrate and showcase entrepreneurs that have proven the long-standing narrative that businesses can have a demonstrated impact on some of the key challenges that the world faces and remain profitable and sustainable. The agenda for the two days of the Summit were curated around the needs of entrepreneurs; building on the Aavishkaar-Intellecap’s group mission to foster an ecosystem of knowledge, capital & networks to help scale enterprises.
We deep dived in to five thematic knowledge areas of financial inclusion, clean energy & climate change, agriculture, WASH & gender. Some of the unique aspects of this year’s summit were the diverse participation – in particular from mainstream private sector and financial inclusion in the region. Mainstreaming the development agenda to be more inclusive has been a priority across our work and it has been demonstrated through the speakers, participants and the outcomes of the summit.
Reflecting on the last ten years, progress in this space and impact can be seen by the growth of enterprises. Our opening plenary showcased four such dynamic enterprises that have become multi million dollar companies, impacting millions of people in underserved areas. The Summit Outcome report highlights key insights from the 40+ discussions, conversations with our participants, and the summit’s outcomes. We can achieve the Sustainable Development Goals by 2030 through business and we hope you will continue with us on Sankalp’s journey of building a thriving ecosystem to support this.
Sankalp Africa Summit 2019 | Post Event Report
PUBLISHED: April, 2019
The entrepreneurial ecosystem in East Africa is young, and incredibly active. Yet, it is fraught with challenges that entrepreneurs face on a daily basis as they launch their businesses. The landscape in East Africa validates the ‘ecosystem approach’ that Intellecap takes – bringing together Capital, Knowledge and Networks. These three factors are inextricably linked and critical for the success of any entrepreneur – seasoned or young.
Sankalp Forum is a multi-stakeholder platform focused on growing the entrepreneurship economy in emerging markets by channeling support to entrepreneurs and innovators. The Sankalp team has successfully organized 6 regional summits in Africa with 1100+ delegates attending the latest edition including government leaders, corporations, investors, entrepreneurs and innovators. Launched in 2014, the annual Sankalp Africa Summit intends to support the regional SME ecosystem and build a transfer corridor with other emerging markets in the Global South. Entrepreneurs remain at the core of Sankalp Forum, and each year through the Sankalp Awards, we source, screen, and support high potential enterprises in their capital raise.
As the entrepreneurship agenda gains popularity from an ever-increasing base of stakeholders, and the space gets more crowded, these stakeholders and the entrepreneurs they support begin to rub shoulders and step on each others’ toes without even knowing it. Many stakeholders have commonalities and overlap in their entrepreneurship agendas, but may never realize it. How effectively are such programs delivering value to entrepreneurs, customers, and beneficiaries? How much redundancy could be alleviated if these stakeholders worked together instead of in parallel? What efficiencies could be improved by aligning agendas across different stakeholders? What insights could be gained from seasoned veterans in the space, like impact investors, accelerator programs, and entrepreneurs themselves?
As we continue to work towards achieving the Sustainable Development Goals, it is more important than ever that we work in tandem instead of independently to amplify each individual’s contributions. The 2019 Sankalp Africa Summit brought together all these different types of stakeholders with the objective of building an enabling ecosystem for entrepreneurship. Our upcoming Summits look forward to helping align stakeholders and provide a platform where unlikely alliances can take hold, and their collective impact can be amplified.
Investing to Connect
PUBLISHED: April, 2019
This white paper seeks to articulate the impacts of connectivity and propose a framework of financial, social and economic key performance indicators (KPIs) for the LMC sector, in order to ultimately drive investments in the sector. The purpose of the framework is to illuminate impact pathways that link investments in LMC enterprises to positive development outcomes. The paper builds on the existing literature pertinent to impact measurement in the connectivity sector and lays out a set of business, outcome and impact metrics that can be used by enterprises and investors to tangibly measure and articulate the anticipated commercial value and positive social impacts of connectivity.
The approach to develop this framework involved extensive research, stakeholder interviews and feedback from an expert advisory panel. Publications from a wide range of organizations and journals were reviewed as part of an extensive literature review on the impact of mobile and internet connectivity in the development context. Over 30 stakeholders with expertise in areas such as investment, technology and enterprise models related to LMC provided insights to guide the development of the framework. An advisory panel of experts reviewed a draft of the report to offer early feedback and incorporate suggestions for inclusion.
A comprehensive list of possible business performance indicators for LMC enterprises was determined, reviewed and proposed for inclusion. From this list, eight core business indicators have been identified. These indicators have been proposed on the basis of their potential to enable LMC enterprises to objectively measure performance and engage investors. In addition, a list of outcome indicators has been proposed. These outcome indicators will enable LMC enterprises to articulate the positive social impacts of connectivity. The proposed core business indicators and outcome indicators can be found in Section 4: Core Indicators. Together, these two sets of measures comprise the KPI framework referenced throughout this paper.
The Indian Social Enterprise Landscape Study
PUBLISHED: February, 2019
India is one of the most dynamic social entrepreneurship environments globally with an estimated two million social enterprises. A vibrant start-up community as well as sustained interest and support from impact investors in India and the world, have resulted in hundreds of projects providing access to basic services and making dramatic changes in the lives of millions of Indians.
The Bertelsmann Foundation mandated Intellecap to undertake research and develop a report that provides insights into the social enterprise landscape in India. This report focuses on seven sectors based on their contribution to the Sustainable Development Goals. The sectors are Agriculture, Clean Energy, Education, Financial Inclusion, Water, Sanitation and Healthcare. The report starts with portrayal of the social entrepreneurship ecosystem with the key stakeholders and their focus areas. Then it deep dives into the seven chosen sectors, highlighting policy initiatives as well as start-ups working on meeting the SDGs in their sector. Finally, it exhibits the key trends for the sector, from both an entrepreneur’s and an impact investor’s perspective in the coming five to ten years. Since the research is conducted for a Germany-based foundation, the recommendation section focuses on how India and Germany can cooperate to create a mutually beneficial partnership. This report will help policymakers identify key interventions, help impact investors fine-tune their sectoral focus and help social entrepreneurs tweak their value propositions.
The Global Landscape of Gender Lens Investing
PUBLISHED: February, 2019
This report presents the global landscape of gender lens investing and examines the strategies used by gender lens investors across the globe. In doing so, it also examines ways in which businesses promote social and economic empowerment of women and correlates investment strategies to them. The report studies patterns and draws insights about the evolution of the gender lens investing strategies, the financial instruments used in adopting them and regions where they are implemented. It also highlights the challenges gender lens investors face in emerging geographies both in terms of raising capital and accessing an investible pipeline for the adoption of this strategy. It is notable that almost 70% of the funds using this strategy were seeded by women investors and/or raised funds from women. The report concludes with a discussion on the various aspects that need to be considered for promoting gender lens investing – especially in developing countries.
Innovative Health FInancing Models for Universal Health Coverage in Kenya
PUBLISHED: February, 2019
The whitepaper brings out the need for innovative health financing models in Kenya and how these models can work towards achievement of Universal Health Coverage. It highlights that broader approach to look beyond social impact bonds and how models like Advance Market Commitments, Asset Lease Financing can facilitate better delivery of primary healthcare services in Kenya. The white paper highlights that the Government should continue to significantly increase its budgets for health to deliver on the Country’s ambition to realize UHC, while it is tapping into other sources of financing to optimize the existing resources and bridge critical gaps.
By Women – for Women: Building the Childcare Ecosystem in India
PUBLISHED: December, 2018
This report is based on the core hypothesis that heightened workforce participation by women can usher in the dual benefits of spurring India’s economic growth and strengthening socioeconomic empowerment of women. With this backdrop, the report contrasts the low and declining levels of women workforce participation in the country and highlights the complex interplay of socioeconomic barriers and challenges that contribute to this phenomenon. The report thereafter, deep dives into the specific challenges associated with lack of access to quality childcare and examines how convenient and affordable access to childcare can help women transition from unpaid labor to paid employment and in turn, socioeconomic empowerment. The report takes stock of the current state of the childcare ecosystem in India and attempts to leverage the latent market opportunity. The report concludes by articulating recommendations for implementing an integrated three-pronged approach that combines building the required policy, skilling and entrepreneurship ecosystems for childcare.
This report will be a valuable resource for a range of ecosystem stakeholders including regulatory agencies and government policymakers, development agencies, foundations, private sector companies in the capacity of employers, incubators and accelerators. It is expected to inform policy formulation and intervention design targeted at strengthening the childcare ecosystem in India.
Women Investing in Women: A Case for Gender Lens Investing in India
PUBLISHED: December, 2018
Global evidence of a strong business case for investing in women and leveraging their potential as entrepreneurs is emerging. The ‘Women Investing in Women’ movement can play a significant role in addressing the systemic access to finance challenges that women entrepreneurs contend with. The report takes stock of the access to finance challenges experienced by women entrepreneurs in India and the resulting financing gap. It explores the potential of the ‘Women Investing in Women’ movement to address those challenges and enhance access to finance for women-led start-ups and small businesses. The core objective of the report is to identify a strategic roadmap for strengthening this movement in India to further the adoption of gender lens investing. This report will be a valuable resource for a range of ecosystem stakeholders including regulatory agencies and government policymakers, development agencies, foundations, private sector companies who aim to strengthen the women entrepreneurship ecosystem in India. It is expected to inform policy formulation and intervention design targeted at strengthening gender lens investing in India.