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When Competitors Collaborate: How Eight Impact-First Investors Came Together to Confront the Valley of Death
The “Valley of Death” — the gap between early-stage capital and the scale-ready financing that social enterprises need to grow — is a perennial challenge in development finance. But according to Brigit Helms at Miller Center for Global Impact, investors rarely slow down enough to unpack why it persists, and what role they can play in closing it. She discusses the initial findings of a unique collaborative study conducted by eight leading impact investors — organizations that are both peers and competitors — who each contributed individual fund data to identify the cost of maintaining their impact-first models. As Helms argues, this expense is not an inefficiency to optimize away, but rather the true cost of closing the Valley of Death.
- Categories
- Investing, Social Enterprise
- Tags
- impact investing, research
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Three Questions for Five African Businesses: Insights from Sankalp Africa Summit’s ‘Enterprise Showcase’
The recent Sankalp Africa Summit featured an “Enterprise Showcase” where up-and-coming African businesses shared information about their work and missions. NextBillion interviewed five of these entrepreneurs and company representatives, asking each of them three questions: What are the main challenges you’re facing in running your business? What kind of support would help you overcome these challenges? And what’s one thing you wish funders understood about your business needs? Their responses reveal some of the innovative approaches and key issues that are emerging in Africa’s vibrant ecosystem of small and medium-sized enterprises.
- Categories
- Agriculture, Energy, Environment, Social Enterprise, Transportation, WASH
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When Uncertainty Becomes Structural: Entrepreneurship Support Organisations as Ecosystem Infrastructure in a New Fiscal Reality
Over the past year, the global development sector has changed at a speed and scale that would have seemed unlikely even two years ago. According to long-time development consultants Stephen Hunt and Nelson Okwonna, as funding dries up and uncertainty becomes structural, entrepreneurship support organizations (ESOs) are increasingly providing the collective functions that were once financed, governed and sustained through donor- and publicly funded programs. They discuss the implications of this shift for ESOs and entrepreneurs, exploring what it reveals about the key needs of entrepreneurship ecosystems — and about how ESOs must evolve to meet those needs.
- Categories
- Social Enterprise
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The Impact Sector is Confusing Satisfaction with Impact: Rethinking the Growing Reliance on Perception Surveys
Measurement standards in the impact sector have shifted toward perception surveys — i.e., forms that ask individuals to rate their personal experience with a program or organization — to quantify success. But as Juan Taborda Burgos, Jorge Bouchot and Miranda Hansen at Root Capital argue, perception-based metrics can mask a program’s ineffectiveness, potentially leading organizations to scale interventions that do not work. They share insights from a recent Root Capital report that reveal the downsides of relying solely on perception data, and offer four actionable principles that can help leaders navigate the pressure to demonstrate impact — while avoiding costly mistakes.
- Categories
- Agriculture, Investing, Social Enterprise
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Impact Leadership Under Pressure: Four Lessons from Resilient Organizations
Impact leadership is hard even in the best of times. But as Erin Worsham and Kimberly Bardy Langsam at the Center for the Advancement of Social Entrepreneurship (CASE) explain, recent crises have put added stress on leaders and organizations across the sector. Drawing on insights gathered during COVID-19 and other crises, they share four key lessons that can help impact leaders navigate the pressure of the present while preparing their organizations for the future.
- Categories
- Social Enterprise
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Storytelling for Velocity, Not Visibility: Why African Development Organizations Need a New Communications Playbook
Something subtle yet profound is changing in how global development organizations in Africa communicate about their work and impact. According to Chrisphine Omondi, a communications specialist with experience across the continent, these organizations have often relied on external communications consultants who produce reports, recommendations and strategies, then exit before those plans are fully implemented. He argues that this model no longer fits the pace and complexity of Africa’s evolving development ecosystem, and explores how African organizations can create a more holistic, systems-based communications model that aligns with the broader changes that are reshaping global development.
- Categories
- Social Enterprise
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Rethinking What it Means to Start a Business: Why Systemic Venture Building Matters for Africa’s Food Future
Africa’s entrepreneurs are often seen as risky investments not due to any limitations of their own businesses, but because of the risks in the systems around them. As a result, as Dieuwertje Nelissen, Eveline Jansen and Rachael Kirui at Enviu argue, it's important for development stakeholders to move beyond de-risking individual businesses and to put greater effort into strengthening and de-risking the systems that support them. They explore this systemic approach in the context of African agriculture, sharing a venture-building model that can help entrepreneurs reduce early-stage risk and scale sustainable impact.
- Categories
- Agriculture, Investing, Social Enterprise
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Scaling Through Consortiums: Five Lessons We’ve Learned About Growing Impact Collectively
For impact-focused organizations, consortiums are rarely the easy path to scale. They tend to be slower, more complex and harder to manage than working with a single partner. But according to Emma Colenbrander at Spring Impact, consortiums can also produce solutions that are broader in perspective, stronger in legitimacy and more resilient in practice. She explores these benefits and shares five lessons for maximizing the impact of this sort of collaborative effort.
- Categories
- Social Enterprise
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