Number of participants
The Dutch Good Growth Fund/Financing Local SMEs is a “fund of fund” investment initiative from the Dutch Ministry of Foreign Affairs that aims to improve financing for the missing middle.
Many small and medium-sized enterprises in developing countries have difficulty securing the financial backing they need to grow.
This group of businesses is often referred to as the ‘missing middle’: they have outgrown micro financing but do not yet have access to regular financial services.
Entrepreneurs – especially young1 and first-time entrepreneurs – face many challenges in growing their businesses, which often go beyond the struggle to gain access to adequate finance. The number of questions and options they encounter on a daily basis when running their business can be overwhelming.
Having access to knowledgeable and reliable resources, networks and exposure that will guide their decision-making process is thus critical to navigate the unknown entrepreneurial journey.
The problem is that these elements are often out of reach for young and first-time entrepreneurs. Some entrepreneurial ecosystems are still developing, resulting in a very limited offer of professional and affordable capacity building services for local entrepreneurs.
They also often have little linkages with other ecosystems, which could offer valuable connections for local entrepreneurs with potential customers, business partners and investors. This significantly inhibits opportunities to start and grow a sustainable business in the entrepreneur’s country of origin.