Financing local SMEs

You can find inspiring case stories about entrepreneurs that were able to succeed with the help of DGGF’s investment on the ‘DGGF in practice’ page.

Enabling entrepreneurship in frontier markets

Since its inception in 2014, the Dutch Good Growth Fund (DGGF) - Financing Local SMEs has made a lasting contribution to improving the financial ecosystems of frontier markets. DGGF's mandate is to bring change to underserved entrepreneurs, and to be a catalysing investor - through the capital we provide and through our role as a pioneer, mentor, advisor, and knowledge builder. Since 2014, DGGF has been able to create a positive impact in 53 countries by, among other things, supporting 65.000 jobs and financing over 11.300 SMEs of which 9.000 SMEs vie the support to local finance providers¹.

Do you want to know more about how DGGF’s unique approach is making an impact? Read our impact report: 'Enabling entrepreneurship in frontier markets'.

The DGGF 'Financing Local SMEs' is an initiative from the Dutch Ministry of Foreign Affairs and aims to improve access to finance for 'missing middle' SMEs in selected DGGF countries. The 'missing middle' refers to entrepreneurs who have outgrown microfinance, are too small or risky for conventional financial market players or lack the growth or return on investment sought by traditional venture capital players². Greater access to finance enables local SMEs to grow and thus contributes to sustainable development in frontier markets. DGGF particularly aims to invest in young or female entrepreneurs and entrepreneurs in fragile states.

The DGGF ‘Financing Local SMEs’ aims to reach the missing middle via two different ways:

1. Intermediary investment funds for local SMEs
2. Seed Capital & Business Development

Would you like to know more about DGGF’s impact to date? Read the impact report 'Enabling entrepreneurship in frontier markets'.