The Dutch Good Growth Fund (DGGF) released its latest report – the study on “Scaling Access to Finance for Early-Stage Enterprises in Emerging Markets: Lessons from the Field”. The report is a result of a comprehensive research undertaken by DGGF with the support of consultants, experts, field builders, investors, and other local and international stakeholders. The report seeks to explore how to improve the scalability and viability of early-stage finance provision in emerging markets, thereby reducing the need for philanthropic capital and subsidies to the local providers of finance and support to early-stage enterprises.

For the purposes of this study, they focused on the challenge of financing of early-stage businesses that may be in pre-revenue or revenue stages, are in a pre-profit stage, but have demonstrated traction in the market and potential to scale up, and that are seeking to raise between USD 10.000 and USD 500.000 of investment. The report explores the general characteristics, relevance and developmental impact of early-stage enterprises in the context of this study, followed by the analysis of the main financing challenges faced by early-stage enterprises and how the specific ecosystem impacts the relevance, optimal approach and effectiveness of the financing options and selected financial intermediaries discussed in the report.