Access to finance is essential for SME growth, but capital alone is often not enough. A new Knowledge Transfer Deep Dive, developed by Steward Redqueen on behalf of DGGF – Financing local SMEs, shows how the combination of funding and knowledge support plays a critical role in strengthening businesses across emerging markets.
Knowledge transfer as a core driver of SME performance
The study takes a bottom-up perspective, drawing on surveys and interviews with SMEs and fund managers across the DGGF portfolio. It provides new insights into how knowledge is transferred in practice and how this translates into improved business performance and broader development outcomes.
The findings underline that knowledge transfer is not a complementary activity, but a fundamental part of SME financing. SMEs consistently report that the support they receive from fund managers, ranging from strategic advice to access to networks, plays a decisive role in their ability to scale and professionalise. This is also reflected in SME experiences:
The practical tools and expert insights shared enabled us to align our business goals with actionable plans, improve our financial discipline and make more informed, data-driven decisions.
- HROne (Insitor)
Image: © DGGF
What makes knowledge transfer effective
Furthermore, the deep dive shows that impact is determined not just by the presence of knowledge transfer, but by how it is delivered and applied in practice. The report identifies three main types of knowledge transfer:
- Educational: Structured learning formats such as workshops, trainings, and courses aimed at building specific skills
- Technical: Hands-on support, tools, and advisory services that help SMEs improve operations and decision-making
- Relational: Ongoing interaction, including mentorship, board-level engagement, and peer-to-peer exchange
Across these different types, relational forms of support are consistently perceived as the most impactful by SMEs, as they enable continuous, tailored guidance and trust-based collaboration.
Conclusion
The knowledge transfer deep dive confirms that the impact of SME investing extends far beyond capital deployment. By combining financial support with tailored, relationship-based knowledge transfer, DGGF enables SMEs to strengthen their capabilities, navigate complex growth challenges, and contribute to sustainable and inclusive economic development.
Want to learn more? Read the full deep dive report here.