Sharing the key lessons of the DGGF knowledge event
The Dutch Good Growth Fund (DGGF) has been instrumental in financing local SMEs, driving impactful investments, and fostering entrepreneurship in emerging markets. Celebrating its ten-year anniversary, DGGF hosted a knowledge-sharing event in Amsterdam, bringing together 160 stakeholders from 35 countries. The event highlighted the achievements in transforming the SME finance sector and discussed strategies for scaling these efforts.
At the DGGF knowledge-sharing event a diverse group of attendees enriched the discussions and interactions. The event saw participation from various organizations, including local capital providers specializing in debt, equity, and mezzanine financing. Development Finance Institutions (DFIs) were well-represented, alongside government and public funding agencies. International investment managers and private institutional investors brought a global perspective to the table. Additionally, representatives from Entrepreneur Support Organizations (ESOs) such as accelerators and incubators, as well as consultants and advisors, contributed their expertise. This broad spectrum of participants from around the world added significant depth and value to the day's conversations.
Key lessons and impact of DGGF over the past decade
Over the past decade, DGGF has partnered with numerous organizations to co-create innovative approaches for financing the "missing middle." Key lessons from the event include the importance of tailored client segmentation, the necessity of taking risks, and the critical role of public funding. The event also emphasized the need for partnerships and the value of learning from failures to build a resilient investment ecosystem.
DGGF's impact over the past ten years has been significant. It has contributed to financing almost 12,000 SMEs and supporting 150,000 jobs. The experiences and lessons learned from the DGGF community are vital for reframing the issues around access to finance for SMEs in emerging markets. These insights can help investors and entrepreneurs navigate the challenges of investing and turn failures into opportunities for growth and impact.
One of the key takeaways from the event was the importance of preserving capital in challenging contexts. Successful companies generate both returns and impact, demonstrating that there is no inherent trade-off between financial returns and impact. Comprehensive impact measurement is essential for understanding the correlation between impact and financial performance. Additionally, taking risks is necessary for innovation and growth. DGGF has played a crucial role in taking risks that others cannot, inviting other market players to fund SME finance in emerging markets.
Look to the future
As DGGF looks to the future, the focus will be on refining and scaling SME finance approaches to drive sustainable development. By engaging local investors and leveraging data for predictive use, we aim to create a more inclusive financial ecosystem that supports the growth of SMEs in emerging markets. The next years should focus on accelerating SME finance deployment, realizing exits, financial returns, and multi-dimensional impact. DGGF's commitment to market creation and the effective use of data will be crucial in achieving these goals.
For more information and detailed key insights and lessons learned please read further here.