NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

In the rapidly evolving entrepreneurial landscape of East Africa, Enterprise Support Organizations (ESOs) have emerged as vital players, supporting startups and small businesses to become engines of inclusive economic growth. Offering a robust suite of services, such as technical assistance for product and service development, access to funding, mentorship, investor readiness training, leadership and governance support, and connections to investor and peer networks, ESOs are a key stakeholder along with investors, and funders in the region’s entrepreneurial ecosystem.

A new report from WDI, “Reimagining the Future of ESOs in East Africa,” integrates insights from accelerators, incubators, investors, ESO donors and intermediaries in the East African entrepreneurship ecosystem. The research adopts a solutions-oriented approach aimed at equipping ESOs to better serve entrepreneurs, maximize the impact of limited donor resources, and strengthen the pipeline of investable companies.

“We present in this report a diverse set of solutions surfaced through interviews with stakeholders from more than 40 organizations and a review of recent studies,” Yaquta Fatehi, Program Manager on WDI’s Impact Measurement and Management team, who led and authored the research. “These insights capture diverse perspectives and emphasize the need for collaboration and trust-building among stakeholders.”

ESO-supported startup businesses are addressing some of the continent’s most pressing challenges, offering market-based solutions to fill gaps in infrastructure and basic services. From online payment services that help informal businesses integrate into supply chains, to platforms that enable farmers to lease machinery, East African startups are finding creative ways to drive economic transformation. ESOs play a critical role in helping idea-stage and early-stage companies mature into small- and medium-sized enterprises (SMEs), which are seen as key drivers of job creation and innovation, particularly in low- and middle-income countries. In East Africa, where youth unemployment is a pressing challenge, entrepreneurship is providing much-needed opportunities. This, in turn, is attracting investors eager to capitalize on the region’s growth potential.

The WDI report builds on the foundational work of initiatives such as the Global Accelerator Learning Initiative by The Aspen Network of Development Entrepreneurs (ANDE), the Argidius Foundation’s SCALE framework, and the Lemelson Foundation’s decades-long systems work. It highlights the interconnectedness of challenges faced by these stakeholders and documents proposed or piloted solutions.

As a systems catalyst, WDI strengthens ecosystems and unlocks funding through partnerships and catalytic collaboration. The report not only provides strategic guidance for the future of ESOs, but also seeks to accelerate the testing and replication of successful solutions, catalyze investment, and promote greater collaboration and alignment of incentives among ecosystem stakeholders. As East Africa continues to position itself as a hub for entrepreneurial innovation, the role of ESOs—and the support they receive from partners—will be more important than ever.