Nairobi, Kenya, (July 31, 2024) – Village Capital and Small Foundation have released a report, “Insights into the Support Ecosystem for Rural Impacting Enterprises in sub-Saharan Africa,” highlighting the pivotal role of Entrepreneur Support Organizations (ESOs) in bolstering Rural Impacting Enterprises (RIEs) across the region.
The report is the culmination of a two-year research project involving data from 359 ESOs identified as supporting RIEs in sub-Saharan Africa, with 19 ESOs selected as research partners. The report provides an in-depth analysis of the current landscape and the critical support ESOs offer to RIEs, which are essential to the economic development of most African countries, where over 60% of the population lives in rural areas.
RIEs are a critical backbone of many African economies, forming a substantial portion of the Small and Growing Businesses (SGBs) segment. They significantly contribute to the GDP of many African countries by driving key sectors such as agriculture, trade, manufacturing, and more. However, these enterprises face significant hurdles, including limited economies of scale and resources, infrastructure gaps, connectivity challenges, and heightened vulnerability to climate change. Recognizing the underexploration of this vital segment, Village Capital and Small Foundation initiated the Rural Enterprise Ecosystem Africa research project to better understand existing support mechanisms for RIEs, identify effective interventions, pinpoint opportunities to enhance outcomes, and develop a thriving support community.
“Collaborating with Small Foundation on this research has been instrumental in highlighting the importance of the RIE support ecosystem,” said Makena Odongo, Program Manager at Village Capital Africa. “This research identifies key gaps in support networks across sub-Saharan Africa, diverse and successful financial models, and scaling potential of effective ESO models, pinpointing which ESOs and support services make the most significant impact. Strengthening these models is crucial for driving economic growth and resilience in rural communities.”
“Small Foundation recognizes the unique challenges and needs of RIEs, which often require different approaches from ESOs,” says Gerard Wynne, Investment Executive at Small Foundation. “This report marks the culmination of over two years of extensive research to better understand the current state of the ESO sector, the efficacy of such support services, and where gaps and opportunities remain. We have been most excited to hear directly from local ESOs on what they need to better support RIEs. Small Foundation looks forward to sharing these learnings and, working alongside others, applying them to better meet the needs of RIEs.”
Key findings from the report include:
Village Capital has been instrumental in ecosystem-building, supporting over 1,600 early-stage entrepreneurs globally and investing in over 150 startups, including those with a rural focus. The organization has engaged more than 120 ESOs through various learning programs designed to enhance their efficiency, sustainability, and impact. This deep engagement provides Village Capital with a comprehensive understanding of the challenges and opportunities facing entrepreneurs, investors, and support organizations.
Founded in 2007, Small Foundation collaborates with intermediaries that create an enabling environment for rural-impacting MSMEs in sub-Saharan Africa by enhancing access to finance, social and human capital, knowledge, technology, and markets.
To download the full report and access detailed insights into the ESO landscape in sub-Saharan Africa, including innovative approaches to improving financial sustainability and the most impactful support services, visit the report page.
For additional information, please contact Eva Waweru at Village Capital (eva.waweru@vilcap.com).
About Village Capital
Village Capital is reinventing the system to back the entrepreneurs of the future. Known for its groundbreaking approaches to supporting founders who are building solutions to emergent social, economic, and environmental challenges, VilCap unlocks critical social and financial capital for early-stage companies to maximize business and impact growth.
Village Capital has operated in sub-Saharan Africa since 2012, running over 14 accelerator programs serving entrepreneurs in 15 countries in the region. VilCap has supported more than 120 locally-based startups and 78 Entrepreneur Support Organizations (ESO) working in sectors such as financial health, hardware, sustainability, and the future of work. Learn more at www.vilcap.com and follow @villagecapital.
About Small Foundation
Small Foundation is a philanthropic foundation based in Ireland with a vision and mission of eradicating extreme poverty in Africa by catalyzing income-generating opportunities, particularly for those in rural areas. Small Foundation’s goal is to improve the business ecosystems that proliferate income opportunities for those in extreme poverty by expanding the access of micro, small and medium-sized enterprises to knowledge, skilled human resources, finance, technology, and markets.