The impact of Tax and ESG TA: an introspect
The Dutch Good Growth Fund – Financing local SMEs (DGGF) continues to assess the outcomes of its Seed Capital & Business Development (SC&BD) Technical Assistance (TA) program, particularly focusing on the impact that our Tax and ESG TA trainings makes on our investees.
Evaluation of Tax TA
DGGF conducted a survey to assess the long-term impact of Tax TAs provided between 2017 and 2023. Completed by 20 funds, the survey aimed to evaluate the enduring usefulness of the TA provided, changes in awareness about tax topics, and the overall satisfaction with the training.
The tax training provides us with the knowledge and skills necessary to understand and look into the complex tax issues that may arise in the future, mitigate risks, and ensure compliance with regulatory requirements.
The goals of the TA were rated positively, with scores for understanding DGGF tax criteria, stimulating tax risk management and compliance, and knowledge of local regulations at 4, 3.9, and 3.65 out of 5, respectively. Transfer pricing and tax planning insights were especially valued, with 85% of organizations affirming the implementation of knowledge gained. Areas for improvement were identified, including the need for additional content tailored for junior staff, offering more practical examples, and providing annual follow up trainings to cover new tax developments.
Insights of ESG TA
A similar survey was sent out to assess the long-term impact of the ESG TA. The survey was filled out by 25 funds that received an ESG TA between 2017-2023. The ESG TA trainings were not only seen as professional and practical, but they also played a pivotal role in shaping the development of robust ESG policies and procedures.
The ESG TA helped to better understand the implementation of climate related initiatives across the portfolio companies and provided information on DGGF climate focused TA facility.
The overall impact of the TA is highlighted by an average rating of 4.4 out of 5, reflecting broad satisfaction among participants. The effects of the training have been diverse. Funds are already actively integrating the training into their investment processes, and many reported an increase in ESG issues due to their heightened awareness.
Commitment to continuous improvement
In light of the feedback, DGGF is committed to enhancing the Tax and ESG TA program. The team will consider suggestions for more in-depth sessions, increased practical examples, and the inclusion of diverse investment types and climate impacts. Virtual group discussions may also be introduced to foster a more interactive learning environment.
The DGGF remains dedicated to supporting its investees through the SC&BD TA program and is encouraged by the positive outcomes and constructive feedback provided by the participants. We are confident that these enhancements will further improve the program's effectiveness and contribute to our investees' success.