Launching Global Entrepreneurship Week-Kigali November

Transcription

1 Launching Global Entrepreneurship Week-Kigali November

2 What Is Global Entrepreneurship Week? 130 countries 25,000 partners 35,000 events, activities and competitions 10 million participants

3 Agenda: A Quick Summary of Global Entrepreneurship Global Entrepreneurship is Growing Especially in Emerging Markets Three particularly Hot Sectors Social, Women, Youth Rise of new Impact Investors Moving from micro to small Still major challenges to entrepreneurial growth but a growing number of efforts to address them 3

4 Emerging Markets Will Lead Global Economic Growth 4

5 Africa will lead the pack 5

6 The Rise of Emerging Markets No longer can established companies treat emerging markets as a sideshow.global leadership will increasingly depend on winning in the emerging markets first, both for larger and smaller companies. - McKinsey and Company, The Power of Many, 2011 Incredible Opportunity for Emerging Market Entrepreneurs 6

7 Entrepreneurship is Everywhere 7

8 Global Entrepreneurship At least 388 Million entrepreneurs were actively engaged in staring and running new businesses in in Global Entrepreneurship Monitor (GEM) survey of 54 Countries Total Early Stage Entrepreneurship In efficiency driven (middle income) economies: up 25% from 2010 to 2011 In innovation-driven (higher income) economies : up 20% from 2010 to 2011 Source: Global Entrepreneurship Monitor 8

9 Social Entrepreneurship Economic Crisis New Generational Values Connective Technology Boom in Social Entrepreneurship 9

10 Social Entrepreneurship 3000 Social Entrepreneurship Mentions in the Global Press 2500 Mentions in the Global Press Year Source: Lexis-Nexis, 300 English Language Publications

11 Social Entrepreneurship 11

12 Social Entrepreneurs: Success Stories Hassina Syed, The Syed Group of Companies, Afghanistan Kabeh Sumbo, Passama Agriculture Trading Company, Liberia Bethlehem Tilahun Alemu, SoleRebels, Ethiopia

13 Women s Entrepreneurship 1400 Women's Entrepreneurship in the Global Press 1200 Mentions in the Global Press Million Female Early Stage Entrepreneurs Year Source: Lexis-Nexis, Global Entrepreneurship Monitor

14 Young Entrepreneurs Success Stories Juan Ramón Nuñez, The light of Sound, Argentina (YBI) Pan Pan Chen and Qiong Qiong Wang, Tao Ming Xuan Teahouse, China (Network for Teaching Entrepreneurship) Clairyce Iribagiza Karungi, HeHe Ltd, Rwanda (MIT AITI)

15 Youth Entrepreneurship 1000 Youth Entrepreneurship in the Global Press 900 Mentions in the Global Press Million Young Early Stage Entrepreneurs Year Source: Lexis-Nexis, Global Entrepreneurship Monitor

16 Impact Investing Investments intended to create positive impact beyond financial return 16 Source: JP Morgan, GIIN, Rockefeller Foundation

17 The Supply Side: Impact Investing Impact Investing Mentions in the Global Press Mentions in the Global Press Year Source: Lexis-Nexis 17

18 Global Impact Investing Landscape Source: ET Jackson & Associates, Accelerating Impact 18

19 Number of Impact Investments Source: Saltuk, Bouri and Leung, Insight into the Impact Investment Market,

20 Impact Investing Market: 2011 Total Market: $4.4B Source: Saltuk, Bouri and Leung, Insight into the Impact Investment Market,

21 From Micro to SGBs SGB SGB SGB SGB SGB SGB Small and growing businesses (SGBs) are commercially viable businesses, typically with 5 to 250 employees, that have strong potential for growth -- and thus for creating economic, social and environmental benefits

22 MFIs Moving Upstream to Serve SGBs 22

23 Financial Flow Schematic of SGB Sector Private Equity Traditional private equity provider (or bank) Medium businesses Commercial investment Capital only provider $2m SGB Sector Blended capital investment Social impact investment Capital and capacity building provider Small and growing businesses Grants for capacity building Capacity building only provider $20k Microfinance Microfinance Provider Livelihood Businesses 23

24 New SGB Investment Funds by Vintage Year SGB-Focused Funds SGB-Inclusive Funds Source: Dalberg analysis 24

25 New SGB Funds: Target Fundraising Size 110 Average Fund Size ($M) ($millions) Source: Dalberg analysis 25

26 ANDE Member Impact: Accelerating To Date, ANDE Members have provided SGBs: Investment In 2011: 1075 investments- 41% of total capital invested by ANDE members $1.53B 4143 Investments Capacity Development Support 2187 SGBs 24,000 + SGBs Supported $289.4M* 22,000 SGBs Source: ANDE Annual Survey Data from ; ANDE Analysis; * Over past three years only. 26

27 Comparing SGB Financing to Private Equity and Microfinance Emerging Market Private Equity Q2011 $291.4bn Target Investment Size $2m $1m $20k SGB $20bn Microfinance gross loan portfolio 2010 $68bn $100bn $200bn $300bn Target Fundraising Source: EMPEA, Mix Market, Dalberg analysis 27

28 Common Challenges in Emerging Markets SGBS Talent Market Access Capital Regulations Investors Pipeline Doing Deals Achieving Impact Exits 28

29 The Sector is Responding Metrics and Standards Marketplaces 29

30 Concluding Thought Only by letting millions of entrepreneurs try new ideas, to innovate, to create businesses that put those ideas to work in a competitive and open way, only by doing those things are we going to be able to tackle the world s big problems. - Angel Cabrera, Chair, World Economic Forum Council on Entrepreneurship 30

31 THANK YOU! 12 Nov 2012 Randall Kempner