SUMMARY OF FINDINGS AND RECOMMENDATIONS
Summary of Findings and Recommendations
Introduction Over the past decade, the impact enterprise1 development field has gained traction and is growing across emerging market countries. It is now evident that these enterprises have great potential to solve many problems for marginalized and vulnerable communities. Yet despite their demonstrated potential, impact enterprises in emerging market economies lack support mechanisms, alternative financing and an enabling environment for their development. Why have we not seen a steady and growing pipeline of impact enterprises?2 Where are the entry points along the pipeline that will facilitate the growth of these enterprises and deepen their impact? How can we close the gap between what stakeholders in the community would like to see from impact enterprises, and what these stakeholders are willing to support and invest to make it happen? No Free Ride: Sowing the Seeds of Impact Enterprise comprehensively maps and assesses the existing landscape and enabling environment of impact enterprise development in emerging market countries, as well as the support mechanisms and the best practices needed for impact enterprises to overcome barriers to development. Drawing on NESsT’s unique methodology for identifying and building the capacity of early-stage impact enterprises, as well as surveys of relevant stakeholders, this report provides a clear picture of where impact enterprises are, where they need to go, who the players in the impact enterprise field are, and how they can take the bold steps needed to facilitate the growth and impact of unique models. The report shows that there is no free ride. All stakeholders have a role to play if they are serious about impact enterprise development; they will all have to take on risks and incur costs if they want the field to mature. The road is not an easy one, but the findings presented in this report show that the road does exist, and it is very much worth going down.
no free ride: sowing the seeds of impact enterprise. summary of findings & recommendations Prepared by NESsT for The Rockefeller Foundation. Copyright Š 2012 NESsT.
1 NESsT defines impact enterprises as businesses that solve a critical social problem in a sustainable manner. NESsT invests in those enterprises that move marginalized communities out of poverty and exclusion by providing access to: fair employment, sustainable income; quality, affordable, basic services; improved living conditions; socially and environmentally responsible products & services; and universal rights. The working definition developed by the William Davidson Institute and chosen for The Rockefeller Foundation initiative defines an impact enterprise as a financially self-sustainable and scalable venture that actively manages toward producing significant net positive changes in well-being across underserved individuals, their communities, and the broader environment. Given the compatibility of the two definitions, for purposes of this report, they are used interchangeably. 2 For purposes of the research and this report, pipeline development is defined as activities taken by investors and incubators/accelerators to develop a stream of investment-ready and/or scalable enterprises.
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