-
Taking First-Loss Guarantees Further: Four Problems That Keep Social Enterprises Stuck, and How Entrepreneurship Support Organizations Can Address Them
Grants and equity dominate the conversation in impact finance, but according to Srinivas Ramanujam at Villgro, debt is often the most practical tool for social enterprises that are too large for a grant, but too small and early-stage for most equity investors. And since lenders face real and perceived risks around these companies' creditworthiness, first-loss guarantees can help make debt capital more accessible. However, he explains that a guarantee alone is not a silver bullet, and that the harder work involves solving the problems that keep enterprises stuck. He explores how Villgro has addressed four of these key challenges, highlighting takeaways for entrepreneurship support organizations and other intermediaries.
- Categories
- Investing, Social Enterprise
-
Indonesia’s Jailing of Gojek Founder Raises Fears for Investor Confidence
Authorities say Nadiem Makarim abused his authority to favour Google in the procurement of laptops for school kids.
- Categories
- Education, Investing, Technology
- Region
- South Asia
-
Philippines Taps AI to unlock Bank Loans for Small Businesses
The agreement aims to strengthen creditworthiness, boost productivity, and streamline loan application processes for local entrepreneurs.
- Categories
- Finance, Technology
- Region
- Sub-Saharan Africa
-
Making Waste Pay: The Keys to Sustaining Paying Customers in Solid Waste Management
Despite growing discourse around the revenue potential of waste to wealth — i.e., reimagining waste as a valuable resource — profitability in municipal solid waste management remains low in India and other low- and middle-income countries. As Vishwanath Varma, Archana Masih, Diksha Rana and Ashish Kapil at Waste Warriors Society argue, this challenge has led to a growing focus on collecting user fees from households — yet that goal is easier said than done. They share analysis based on Waste Warriors Society’s user fee records and customer surveys, which reveals key insights on how to retain paying customers in solid waste management and other user fee-based models of social entrepreneurship.
- Categories
- Social Enterprise, WASH
-
MIGA, Deutsche Bank Partner to Increase Trade Finance in Frontier and Emerging Markets with EUR 1 Billion Guarantee Platform
The platform is not only seeking to expand access to trade finance but also has targets to direct a meaningful share of the trade finance volume enabled by MIGA's participation toward priority areas, including International Development Association (IDA) countries and Fragile and Conflict-affected Situations (FCS), small and medium enterprises (SMEs), agriculture, health, and water.
- Categories
- Finance
- Region
- Global
-
Analysis: Building AI on African Terms
AI promises new opportunities for African businesses, but it also risks deepening technological dependency.
- Categories
- Technology
- Region
- Sub-Saharan Africa
-
South Africa Fintech Bridgement Raises $20 Million as Banks Back AI-Powered Business Lending
The RMB and Standard Bank funding enables Bridgement to expand its direct lending to SMEs and strengthen its position as a leading online business lender in South Africa.
- Categories
- Finance
- Region
- Sub-Saharan Africa
-
Press Release: Catalyst Fund Deepens Bet on Africa’s Climate Resilience Founders
Catalyst Fund, the pan-African venture fund and venture builder backing founders from pre-seed to Series A, has announced the completion of its second close, with total commitments now reaching $30 million.
- Categories
- Environment, Investing
- Region
- Sub-Saharan Africa
Subscribe to Our Weekly Newsletter, "NextBillion Notes"
Published each Wednesday, our e-newsletter features NextBillion's latest original articles, along with a selection of news, jobs, bizdev opportunities and events from our recent coverage — and regular conference ticket giveaways.
We respect your privacy. Your information is safe and will never be shared.
Don't miss out. Subscribe today.