REPORT: State of the Small & Growing Business Sector, June 2016
by the Aspen Network of Development Entrepreneurs
Since 2009 ANDE has been tracking the state of the small and growing business (SGB) sector to assess its growth and impact on emerging market economies. This year’s report reflects a sector that is on the move—and also dives into regional market insights. It discusses the hurdles for emerging market entrepreneurship—access to capital, talent and markets—and evaluates how well the sector is addressing these.
Key highlights from the report include:
- ANDE members have collectively invested over $12 billion directly into SGBs and supported over 415,000 entrepreneurs with business development services.
- In the past ten years, 485 investment vehicles have launched that invest in emerging market SGBs, with an estimated $26 billion in committed capital.
- An estimated one-third of SGBs are owned by women, and more ANDE members have embraced gender-lens investing: at the end of 2015, 63 percent of ANDE members included a focus on women entrepreneurs, up from 50 percent in 2011.
Despite growth, there are still a few key hurdles that small businesses in emerging markets must overcome on their path to growth including:
- Talented managers are needed to accelerate growth of small businesses.
- Deals under $2 million are on the rise, but very early-stage investing lags.
- Entrepreneurship is key to creating jobs, yet development dollars are declining.
Read the full report
Read the press release