Scale up Social and Impact Entrepreneurship
Social and Impact Enterprises (SIEs) address critical social and environmental challenges while being innovative, and generating positive development impact. For SIEs to thrive, they require an environment with well-functioning Ecosystem Support Organizations (ESOs). Strengthening SIEs and ESOs – with a focus on forcibly displaced persons – is a powerful catalyst for achieving the SDGs, aligning with Switzerland’s interest in contributing to sustainable and inclusive economic growth.
| Country/region | Topic | Period | Budget |
|---|---|---|---|
|
Global |
Employment & economic development Migration
SME development
Migration generally (development aspects and partnerships) Business support & economic inclusion Employment creation |
22.09.2023
- 31.10.2028 |
CHF 8’000’000
|
- 124-130 SIEs (direct capacity building for 100, of which at least 40 will be FDP-led; indirect through ESO for 24-30), out of which 24 SIEs are granted financial investment of USD 200’000 each, and 40 FDP-led SIEs additional USD 30’000.- (in average) in grants and investments
- 45 ESOs
- 120’000 low-income individuals, including 40’000 forcibly displaced persons, through jobs, increased income or the provision of goods and services
- Strengthened SIE and Ecosystem Support Organisation : - Support structures and networks for SIEs and ESOs are strengthened in targeted regions, improving access to growth opportunities
- Scaled-Up Impact of SIEs : Increased capacity of SIEs to deliver impact at scale, including for the forcibly displaced persons
- System Change : Strengthened collaboration and adoption of inclusive, innovative SIE and forcibly displaced persons (FDP)-focused SIE interventions among diverse stakeholders
- Local and regional ESOs are trained to support SIEs and their particular needs
- Investment readiness of SIEs is improved
- Operational and strategic capacities of SIEs are strengthened to deliver impact to marginalized communities (including FDPs), and catalyze gender transformation
- Increased financing options for SIEs to promote innovation and diversification of funding sources
- Foreign private sector North
- Impact-Linked Finance (ILF) projects, such as ILF for Eastern and Southern Africa, ACELI and Scaling-Up of ILF
- Projects supporting social and impact entrepreneurs and ESOs, such as the Financing durable solutions initiative in the Horn of Africa, including support to ACUMEN; support to Inkomoko in Dadaab
- Close coordination with SDC’s Africa Division (Regional Thematic Advisors, Swiss Representations)
-
Sector according to the OECD Developement Assistance Commitiee categorisation GOVERNMENT AND CIVIL SOCIETY
INDUSTRY
BUSINESS & OTHER SERVICES
INDUSTRY
GOVERNMENT AND CIVIL SOCIETY
OTHER SOCIAL INFRASTRUCTURE AND SERVICES
BUSINESS & OTHER SERVICES
Sub-Sector according to the OECD Developement Assistance Commitiee categorisation Facilitation of orderly, safe, regular and responsible migration and mobility
Small and medium-sized enterprises (SME) development
Business support services and institutions
Small and medium-sized enterprises (SME) development
Facilitation of orderly, safe, regular and responsible migration and mobility
Employment policy and administrative management
Business support services and institutions
Cross-cutting topics The project also supports partner organisation improvements
Aid Type Mandate without fiduciary fund
Project and programme contribution
Project number 7F11233
| Background | A new generation of pragmatic, innovative and visionary SIEs is drawing on a mix of business, philanthropic and social movement models to develop adaptable, aid-independent and more sustainable solutions for the SDGs. The potential of this sector is increasingly attracting the interest of the investment community. However, many SIEs are still at an early stage of development. They lack the appropriate ecosystems to develop their full potential, and they face several challenges (access to finance, etc.) throughout their lifecycle, which hinder their growth to scale. This is particularly true for SIEs serving lowincome individuals and vulnerable groups, including displacement affected communities, and specifically for SIEs operating in SDC priority regions. This programme aims at scaling up innovations and good practices, building on lessons learned from past programmes, and enabling new innovations in Africa, with a special focus on gender and displacement affected communities. |
| Objectives | SIEs thrive and contribute to sustainable development goals (SDGs) through fostering inclusive economic growth for vulnerable people – including displacement affected, reducing poverty, addressing social challenges and gender inequalities through higher incomes, decent jobs as well as access to goods and services. |
| Target groups |
|
| Medium-term outcomes |
|
| Results |
Expected results: Results from previous phases: SDC has a long and positive track record of supporting SIEs in specific development contexts (e.g. in Latin America and the Caribbean or Middle East) and themes (e.g. water or migration). Previous SDC funded projects have shown that SIEs need support on different dimensions to stay on their social mission: business acumen in general, investment readiness, impact measurement, and gender equality have been identified as the most important issues to be addressed when supporting SIEs. Support from ESOs and investors along these lines has proven as crucial. Thanks to its previous support to SIEs, SDC is recognized in this sector as a pioneer and innovator. |
| Directorate/federal office responsible |
SDC |
| Project partners |
Contract partner Private sector Implementing partner
Draper Richards Kaplan Foundation (contract partner) in collaboration with Amahoro Coalition and GrowthAfrica (sub-contractors)
|
| Coordination with other projects and actors |
|
| Budget | Current phase Swiss budget CHF 8’000’000 Swiss disbursement to date CHF 1’591’248 Total project since first phase Swiss budget CHF 31’500’000 Budget inclusive project partner CHF 19’000’000 |
