nicaragua s entrepreneurial ecosystem · 2018-04-01 · offer, which areas are the strongest, and...
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Nicaragua‘s Entrepreneurial Ecosystem
April 2016
About the Research
According to the World Bank Doing Business 2016 Index, Nicaragua is ranked 119th out of 189 countries on the ease of doing business.
The country’s economy is dominated by micro-enterprises with 87% of the total, while small and medium enterprises represent 12% (1).
This is consistent with the study the Global Entrepreneurship and Development Institute (GEDI) study that measures entrepreneurship,
economic development, and welfare, where Nicaragua falls into 110th place of 132 countries (2).
Given the potential for entrepreneurship to create jobs and increase economic growth, the Aspen Network of Development
Entrepreneurs’ (ANDE) Central America and Mexico Chapter developed this study with the following goals:
• Identify organizations that are working to support entrepreneurship
• Identify potential partners for these organizations
• Identify where the gaps are for supporting entrepreneurs
• Identify where organizations can collaborate to promote entrepreneurship in Nicaragua
With those goals in mind, we designed a questionnaire for entrepreneurial support organizations that focused on the following
elements:
• Type of organizational intervention
• Stage of entrepreneur they support
• Type of capacity development they offer
• Financial support they offer (debt, investment, etc.)
• Sector they support
• Geographic presence
We would like to thank the 28 that were a part of the first stage of this study, through which we were able to visualize the support they
offer, which areas are the strongest, and where collaboration is needed to strengthen the entrepreneurial ecosystem. This study has
not been exhaustive, but has resulted from a joint effort between ANDE and the organizations involved.
(1) Doing business 2015, World Bank [Online]. [Retrieved on: April 4 2016]. Available here.
(2) Global Entrepreneurship Index 2016, GEDI [Online]. [Retrieved on: March 8, 2016]. Available here.
(3) ANDE is a global network of organizations that propel entrepreneurship in emerging markets as a way creating prosperity fostering stronger
relationships and partnerships in the local and international ecosystem. (www.andeglobal.org).
Stage Idea Startup Early-Stage Expansion StageGrowth
StageConsolidation
Fin
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acit
ies
Develo
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Typ
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Global Partnerships
Entrepreneurial Ecosystem in Nicaragua
*The organizations of “Financial Support” that are in Green offer financing and capacity development support.
Lafise Invesment Management
AC Negocios
Activ Ventures
CARE International
Fundación Avina
Heifer International
Kakao Media
Oxfam
TechnoServe
Universidad Nacional de Ingenieria
Centro Desarrollo Emprendimientos, Cámara de Comercio y Servicios de Nicaragua
La Fabrica
Women Agriculture TechnologySocial
entrepreneursYouth All
Thriive Nicaragua
Plata con Plática
Central American Bank for Economic Integration
Fundación Avina
Oxfam
EcoEntreprises Fund
GOAL
Root Capital
Agora Partnerships
Central American Bank for Economic Integration
Hivos
Centro de Estudios para el Desarrollo Rural- Programa de Servicios Financieros para la Agricultura Sostenible
Fundación-i
FUNDES
INCAE Business School
Red Latinoamericana de Universidades por el Emprendedurismo Social - RedUnES
VIVA
Pomona Impact
Geographic PresenceP
rese
nce
at
Na
tio
na
lLev
el
What kind of support do they offer?
57%
Give Financial
Support
82%
Training to
entrepreneurs
67%
Education on
entrepreneurial
culture
19%
30%
Research
about the
topic
82% and 57% of participant
organizations work on training to
entrepreneurs and financial support,
respectively. 67% focus on education
in entrepreneurial culture. This
suggests that while levels of
entrepreneurship in Nicaragua are still
low, the efforts to promote
entrepreneurship are high. Local talent
is supported with financial aid,
boosting the starting business
ecosystem in a more effective way.
However, research on
entrepreneurship needs more
support. Relevant research can
improve information, models,
processes, strategies, and make it
easier to identify new market
opportunities.
The weakest point in the ecosystem
are those organizations whom give
support to intermediaries, this
means, financial institutions or
foundations that give support to
incubators, accelerators, funds, etc. n=28
Support to
conveners
Type of
Support
How do organizations provide these capacities?
The main ways that organizations in Nicaragua are working to develop entrepreneurial capabilities are
through business plan development/ incubation, financial/accounting support, and mentoring. To a lesser
extent, leadership programs and activities related to multisector articulations, congress, seminars and
international open space conferences.
16
9
8
20
11
12
11
0 5 10 15 20 25
Training and Courses
Financial and Accounting Support
Leadership Programs
Mentoring
Accelerator
Market Research and analysis
Business Plan and Incubation
Capacity Development
OrganizationBusiness Plan
Development/ IncubationMarket Research and
AnalysisAcceleration Mentoring Leadership Programs
Financial and Accounting Support
Training Courses Others
AC NEGOCIOS
Activ Ventures
Agora Partnerships
BCIE/ CABEI
CARE Internacional
Centro de Estudios para el
Desarrollo Rural- Programa de
Servicios Financieros para la
Agricultura Sostenible
Centro Desarrollo
Emprendimientos , Camara de
Comercio y Servicios de
Nicaragua
EcoEnterprises Fund
Fundación Avina
Fundación-i
FUNDES
Global Partnerships
GOAL
Heifer International
Hivos
INCAE Business School
Kakao Media
La Fabrica
Lafise Investment
Management
Oxfam
Plata con Plática
Pomona Impact
Red Latinoamericana de
Universidades por el
Emprendedurismo Social -
RedUnES
Root Capital
TechnoServe
Thriive Nicaragua
Universidad Nacional de
Ingeniería
VIVA
Investment in Nicaragua
Out of the 28 organizations that participated, 57% provide financial support, mainly in the forms of
mezzanine debt and loans. But, even when debt (loans) is the main form of financial support, other efforts
are also being made through mezzanine and equity financing.
Organization CapitalDebt
(Mezzanine)
Debt
(Loans)
AC NEGOCIOS
Activ Ventures
BCIE
CARE Internacional
EcoEnterprises Fund
Global Partnerships
GOAL
Hivos
Kakao Media
Lafise Investment Management
Oxfam
Pomona Impact
Root Capital
TechnoServe
Thriive Nicaragua
Universidad Nacional de
Ingeniería
8
5
11
0 5 10 15
Debt (Loans)
Debt (Mezzanine)
Capital (Equity)
Organization Website
AC NEGOCIOS Does not have
Activ Ventures www.activ.ventures
Agora Partnerships http://agorapartnerships.org/esp/
BCIE http://www.bcie.org/
CARE Internacional http://www.care-international.org/
Centro de Estudios para el Desarrollo Rural- Programa de
Servicios Financieros para la Agricultura Sosteniblehttp://cdr.or.cr/
Centro Desarrollo Emprendimientos , Camara de Comercio y
Servicios de Nicaraguahttp://www.ccsn.org.ni/
EcoEnterprises Fund http://www.ecoenterprisesfund.com/
Fundación Avina http://www.avina.net/avina/
Fundación-i http://fundacion-i.org/
FUNDES http://www.fundes.org/
Global Partnerships http://www.globalpartnerships.org/
GOAL https://www.goalglobal.org/
Heifer Internacional http://www.heifer.org/
Hivos https://hivos.org/
INCAE Business School http://www.incae.edu/
Kakao Media http://es.kakaomedia.com/
La Fabrica http://www.la-fabrica.co/
Lafise Investment Management http://www.lafiseinvestment.com/lafise-lim/
Oxfam http://www.oxfam.org.uk/
Plata con Plática http://plataconplatica.com/
Pomona Impact https://www.oxfam.org/es
Red Latinoamericana de Universidades por el Emprendedurismo
Social - RedUnESwww.redunes.org
Root Capital http://www.rootcapital.org/
TechnoServe http://www.technoserve.org/
Thriive Nicaragua http://www.thriivenicaragua.org/
Universidad Nacional de Ingeniería http://www.fiq.uni.edu.ni/
VIVA http://www.vivaidea.org/es/
Where can I find more information about the
organizations?
Glossary
1. Moreno, Tania. Expansion [on line]. 2016. [Retrieved on March 31, 2016]. Available here.
2. Investopedia [on line]. 2016. [Retrieved on March 31, 2016]. Available here.
3. López Domínguez, Ignacio. Expansion [on line]. 2016. [Retrieved on March 31, 2016]. Available here
Entrepreneurial Stage:
• Idea (concept): The business is just an idea or a prototype; the organization is not formally established; capital and capacity development
services resources can demonstrate the business model viability and it represents a high level risk.
• Startup: The business is formally established; products and services are starting to be produced. The use of capital or capacity
development services is being oriented to product development and commercialization.
• Early Stage: The product is already tested, but it could have low sales, negative cash flow, and a small team. The capital and capacity
development are oriented to start the commercialization processes, trying to reach an equilibrium.
• Expansion Stage: The business model has been proven and has financially broken even. Capital and capacity development are oriented
to prove that the model is scalable.
• Growth Stage: The organization has a scalable business model and is financially viable. Capital is required to accelerate growth (for
example: investing in new infrastructure and exploring new markets).
• Consolidation: Stage before the public offer.
Financial Support:
• Capital (Equity): A fund for big businesses that is generally used for important business expansion or internationalization. Private Equity
Provides capital in exchange for shares provided by the business. Equity capital often also provides non-monetary resources such as
contacts, best practices, professionalized management, and so on. Their participation in business is temporary and typically lasts between
four and seven years. (1)
• Mezzanine: A hybrid between debt and equity that is used for business expansion, and essentially enables the lender to convert debt
into equity if the debt cannot be liquidated on time. (2)
• Loan: The financer provides the entrepreneur with an amount of money that has been established under a contract, indicating the ways
that the capital has to be returned, along with loan interests that must be repaid, and deadlines predetermined by a contract. (3)
We want to thank all of the organizations that participated in this survey and recognize the
great contribution they make everyday to the entrepreneurial ecosystem in Nicaragua.
If you are interested in being part of this map, please fill this survey.
For more information, contact the regional staff of Central America & Mexico ANDE Chapter:
Katia Dumont
Regional Manager
ANDE Central America & Mexico
Email: [email protected]
Rosario Uriarte
Programs Coordinator
ANDE Central America & Mexico
Email: [email protected]
Twitter @AndeMexicoCA
http://www.andeglobal.org
About the study of Nicaragua’s Entrepreneurial
Ecosystem