2. Jenny Everett - ANDE Presentation - Colombia August 2010
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Transcript of 2. Jenny Everett - ANDE Presentation - Colombia August 2010
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Foro Anual de Inversin
Bogot
18 de agosto, 2010
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Overview
Introduction
State of the SGB Sector
ANDEs Role in the Sector
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Guiding Thought
Only by letting millions of entrepreneurs try newideas, to innovate, to create businesses that put
those ideas to work in a competitive and openway, only by doing those things are we going tobe able to tackle the worlds big problems.
-Angel Cabrera, Chair, World Economic ForumCouncil on Entrepreneurship
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SGBsSGBs
Small and growing businesses (SGBs) =
Commercially viable businesses
5 to 250 employees
Strong potential forgrowth
Likely to create economic, social, andenvironmental benefits
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SGBsSGBs Will Create
Impacts
Job GrowthWage GrowthRevenue GrowthNet Income GrowthNew ProductsCustomers Served
Suppliers Supported
EconomicEconomicBenefitsBenefits
Steady jobsIncreased incomesWealth creation
SocialSocialBenefitsBenefits
Social goods (glasses)Social infrastructure(toilets)
EnvironmentalEnvironmentalBenefitsBenefits
Reduce deforestationImprove air quality(LPG)
Leading To:
The Promise of SGBs
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Despite potential benefits, formal small business sectors inlow income countries are much less developed
1. Contribution percents are median values for income group Source: Ayyagari, Beck and Demirguc-Kunt, Small and Medium Enterprisesacross the Globe: A New Database, World Bank 2003; Dalberg analysis
18
57
0
20
40
60
80
100100
Low incomecountries1
100
High incomecountries1
Share of totalEmployment (%)
Other Sectors
Formal SME Sector
Informal Sector
16
51
0
20
40
60
80
100
Low incomecountries1
High incomecountries1
Contributionto GDP (%)
28
15
53
29
28
1553
29
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Financial Flow Schematic of SGB Sector
Social impactinvestment
Commercialinvestment
Grants for capacity
building
Blended capitalinvestment
Capacity buildingonly provider
Capital and capacitybuilding provider
Capital only provider
Small and growingbusinesses
Microfinanceprovider
Traditional
priv
ate equityprovider
Mediumbusinesses
Microfinanceclients
SGBSector
Private
Equity
Microfinance
$25k
$2m
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SGB investment funds by geography
Percent ofidentified SGB funds investing in key regions
18% 58% 6%
8% 20%
13%
Note: N=1 , does not include funds with unknown investment regions. Funds
investing in multiple regions are counted once for each regionSource: Dalberg analysis
Americas
Africa
Middle East Asia India
Central & Eastern Europe
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New SGB funds by year
Note: N= 13 funds, does not include 5 funds with unknown vintage yearSource: Dalberg and ANDE analysis
22
30
26
23
87
6
7
9
Number of new SGB investment funds by vintage year
200920082007200620052004200320022001
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Total fund size
Note:SGB target fund size does not include 36 identified funds for which target fund size is unknown; SGB target fund size includes funds willing to invest
$2M and funds with minimum investment size not available
Source: *Emerging Markets Private Equity Association (EMPEA);**Dalberg analysis; ***Mixmarket 2008
SGB investment funds versus Emerging Market
Private Equity and Microfinance Sectors (2008)
$0
$2m min.
Investmentsize targets
~67*
~7**
~32***Loan Volume per Year ($B)
SGB target
fund size ($B)
$25K min.
Emerging markets private equity market totalfunds under management ($B)
Microfinance
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What is ANDE?
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The Aspen Network of Development Entrepreneurs (ANDE) is a
global network of organizations that propel entrepreneurship in
emerging markets. Our members provide critical financing and
business support services to small and growing businesses thatcreate significant economic, environmental, and social impacts
in developing countries.
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Aspen:Aspen: a nona non--partisan organization whosepartisan organization whosemission is to bring together people whomission is to bring together people who
shouldshouldbe collaborating on societalbe collaborating on societalchallenges but would not do so ordinarily.challenges but would not do so ordinarily.
Network:Network: an interconnected group or systeman interconnected group or system
Development:Development: improving the economic,improving the economic,social and environmental welfaresocial and environmental welfare
Entrepreneurs:Entrepreneurs: individuals whose passionindividuals whose passionleads them to organize available resources inleads them to organize available resources in
new and more valuable waysnew and more valuable ways
What is ANDE?
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THE ANDE VISION
A thriving local SGB Community that addresses the finance, humancapital, market access, and enabling challenges faced by SGBs
A well functioning, growing and global SGB Sector that is creating andbuilding successful SGBs at increasing rates in developing
countries
Successful SGBs that demonstrate anattractive market and stimulate thegrowth of local finance and service
providers
Successful local entrepreneurs toserve as angel investors and
demand an improved businessenvironment
Long-term
Outcome
(15 yr)
Mid-term
Outcome
(10 yr)
Near-term
Outcome
(5yr)
Significantly increased prosperity for the people of the developing
world as measured by increased incomes, higher quality of life andsocial and environmental advances
Vision
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Who makes up ANDE?
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ANDE Membership: Diverse, Growing, Young, Global
1
Total Members: 93
Active in over 130Developing Countries
55% of orgs,
less than 5 years old
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ANDE Member Regional FocusPercent of ANDE funds and capacity builders
supporting SGBs by region
Note: Funds investing in multiple regions are counted once for each region; N=71
Source: ANDE member data; Dalberg analysis
54%41%
17%
17%30% 21%
35%
Americas
Africa
Middle East South and South East Asia
Central & Eastern Europe Central Asia East Asia
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ANDE in Colombia
AVINA Foundation
BiD Network
Calvert Foundation
CHF International
Endeavor
Financial Alliance for Sustainable Trade
Fundacin Bavaria
Fundacin Davivienda
FUNDES
Bill & Melinda Gates Foundation
Grassroots Business Fund
GrupoEcos
Inversor
Mercy Corps
New Ventures - World Resources
OTF Group
PymeCapital
Root Capital
Root Change
Small Enterprise Assistance Funds
(SEAF)
SNV
TechnoServe Inc.
Universidad de los Andes
1
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ANDE Members Sector Focus
Percent of ANDE memberinvestment funds andcapacity building providers with sector focus
Education 29%
Energy
70%
43%
Agribusiness/ agriculture 57%
Generalist
Health 30%
Water/ irrigation 36%
Note: Respondents could select more than one answerN= 70 funds and capacity building providers; Percentages based on number of funds and capacity builders, not dollars invested
Source: ANDE member data; Dalberg analysis
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ANDE Investment Funds: Target Return Rates
Percent of ANDE member funds
Note: N= , does not include 3 ANDE member funds that have not provided target IRR rangeSource: ANDE member data
0-5% 5-20%
6%
57%
10%
8%
4%
12%
Target return rangeAbove 20%
89% of ANDE members have social/environmental goals, in addition to financial targets
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ANDE Member Capacity Building Offerings
Business plancompetition
26%
Business plandevelopment
60%
Entrepreneurship/ basicbusiness skill training
73%
Establishing marketlinkages
76%
One-on-onementorship
77%
80%
Note: Respondents could select more than one answer. Only members offering some sort of capacity development are included.
N= 70 funds and capacity builders Source: ANDE member data
Individualized businessconsulting services
Percent of ANDE Members Offering
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ANDE Impact: By the Numbers
Capital Invested At least USD$ 30 million; 2500 investments Leveraged additional $1.7b in capital Cumulative Target Fund Size: $1.7b
Technical Assistance In 200 , at least $97 million
SGB Impact Employ more than 300,000 people Served 7 million customers
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ANDE Activities:
1) Knowledge Sharing &Networking
2) Training & Talent
Development3) Metrics & Evaluation
) Capacity DevelopmentFund
5) Advocacy & Education
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Whats Next for ANDE: Upcoming Activities
Knowledge Sharing &Networking
Training & TalentDevelopment
Metrics and Evaluation
Capacity DevelopmentFund
Regional Hubs 2010 Annual Conference Sep 29th Oct 1st
Sector update calls, website, directory
Investment Officer Training Orientation Training Train the Trainer Leadership Program
Impact Assessment Manager Promote Global Adoption of IRIS Metrics Conference
15 grants made in 2009-2010 Replenish CDF Funds
Advocacy & Education SME Landscape Report Roundtables with State Department; USAID
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In sum:
You can never deliver enough charity to give
poor people a decent life. Business is the only
sustainable answer to poverty; it gives people away to earn money to pay for a decent life
themselves.
R. Glenn Hubbard and William Duggan, The AidTrap
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