1. Innovation in Finance to Finance Innovation: Supporting
pro-poor entrepreneur-based innovation
Lina Snne
2. The Entrepreneurship Definition
Pro-poor entrepreneur-based innovation
Solar lights for street vendors (hawkers)
Energy efficient burners and stoves
Gathering and processing hides, value addition and
manufacturing
Vaatsalya: chain of rural hospitals
3. The Finance Problem
Conventional Finance:
No finance from the core, e.g. Banks -too risky
No microfinance -too big
No venture capital too small
Few government grants
4. The Alternative Finance Sector
Aavishkaar: Micro Venture Capital
Invests equity and offers management and strategy support
BASIX: Livelihood Finance Provider
Provides finance for growth entrepreneurs, links farmers with food
manufacturers and sets up and supports farmer cooperatives
(MACS)
S3IDF: Social Merchant Bank
Facilitates finance, technology and entrepreneurs for
infrastructure
CTD: Innovator
Constructs business models based on local raw material and skills
for poor rural communities
Villgro: Incubator
Incubates entrepreneurs and inventions
5. The Results (1)
Complementary services providing an ecosystem of finance
Different kinds of innovation need different kinds of
support
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6. The Results (2)
What do they do?
Flexible finance
Provision of finance
Period of finance
Integrated support beyond provision of finance
How do they do it?
Innovation in finance to finance Innovation
Learning and feedback loops
Networks are important
Links to mainstream financial system- e.g. banks
7. The Policy Recommendations
Enabling Environment
Innovation prioritisation by Government(s)
Innovation Agency
Regulations
Coordinate support
Research: innovative in financial and non-financial support
Innovation Fund
Start-up grants
Equity and debt investments
Debt for on-lending: credit guarantees to attract external
finance
Capacity Building
Train NGOs and banks
Direct support to entrepreneurs
8. The Summary
Shift from microfinance and subsistence entrepreneurs to larger and
integrated finance support and innovative entrepreneurs
