State of the Sector 2019 provides a summary of key developments and trends in the small and growing business sector in 2019 and previews expected impacts of the COVID-19 pandemic.
Contact: Natalie Alm
Aspen Network of Development Entrepreneurs (ANDE)
Washington, DC, August 5, 2020 – The Aspen Network of Development Entrepreneurs (ANDE), a global network of almost 300 organizations that propel entrepreneurship in emerging markets, today released the 2019 State of the Small and Growing Business (SGB) Sector report. The report highlights a variety of positive trends for the SGB sector in emerging markets in 2019, but the COVID-19 pandemic threatens to reverse those gains.
ANDE has been tracking the growth and impact of the small and growing business sector in emerging market economies since 2009. The analysis examines global trends in support for small and growing businesses through capacity development services, direct private investment, and donor funding, as well as specific trends by region. The latest report provides a retrospective summary of key developments and trends in the sector in 2019 and relevant insights based on initial data and emerging information on the potential impact of the COVID-19 pandemic on those trends in 2020. It is available in English, Spanish, and Portuguese.
According to this year’s findings, at least 85 new investment were launched in 2019, with total committed capital of at least $2.9 billion. New research also emerged around best practices for capacity development support, and both public and private donors deployed hundreds of millions of dollars of catalytic grant capital. However, the COVID pandemic stunted this progress. By April 2020, ANDE surveys showed that approximately 40% of developing economy SGBs and up to a third of the capacity development providers were in danger of failing within six months.
“It is critical for emerging economies that many SGBs survive the COVID-19 pandemic,” said Matthew Guttentag, ANDE’s Director of Research and Impact. “Supporting the SGB ecosystem is more important than ever as SGBs, capacity development organizations, and investors all face social and economic headwinds.”
Additional key findings from the report include:
- Over 190,000 SGBs received capacity development support from ANDE members in 2019, principally focused on business strategy and planning support and creating access to networks and partners.
- At least three major catalytic capital activities were launched in 2019, with a combined funding pool of $329 million.
- Impact measurement for investments continues to evolve from racing to adopt the latest and greatest framework to calling for standardization and consolidation of tools.
- A greater portion of enterprise support funds were directed towards Latin America and the Caribbean in 2019 than in previous years, and support fell slightly in the Middle East and North Africa, South Asia, and Europe and Central Asia.
This report was developed as part of the Global Inclusive Growth Partnership, a collaboration between the Aspen Institute and the Mastercard Center for Inclusive Growth.
The Aspen Network of Development Entrepreneurs (ANDE) is a global network of organizations that propel entrepreneurship in emerging markets. ANDE members provide critical financial, educational, and business support services to small and growing businesses (SGBs) based on the conviction that SGBs can create jobs, stimulate long-term economic growth, and produce environmental and social benefits.
As the leading global voice of the SGB sector, ANDE believes that SGBs are a powerful, yet underleveraged tool in addressing social and environmental challenges. Since 2009, ANDE has grown into a trusted network of almost 300 collaborative members that operate in nearly every emerging market. ANDE grows the body of knowledge, mobilizes resources, and connects the institutions that propel the small business entrepreneurs who build inclusive prosperity in the developing world.
ANDE is part of the Aspen Institute, a global nonprofit organization committed to realizing a free, just, and equitable society.
Launched in October 2019 with an inaugural summit, the Global Inclusive Growth Partnership is a collaboration between the Aspen Institute and the Mastercard Center for Inclusive Growth. GIGP is a multi-year program that combines the expertise and networks of both the Institute and the Center and is designed to further action on financial security, the future of work and portable benefits, global and domestic small business development and entrepreneurship, and commercially sustainable social impact.