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Trade & Competitiveness GP
Sustainable, Inclusive Growth Expand Markets Create Jobs Raise Incomes
Innovation & Entrepreneurship Unit
Innovation-Led Growth Increased Rates of Start-Ups Higher Firm Productivity
World Bank Group
End Extreme Poverty Increase Shared Prosperity
=+
Knowledge Piloting withpartners
Scaling up
AGRIBUSINESSENTREPRENEURSHIP
DIGITALENTREPRENEURSHIP
CLEANTECHNOLOGY
EARLY STAGEFINANCE
WOMEN’SENTREPRENEURSHIP
What does acceleration mean in SSA?
The study to answer this question was comprised of three components:
• Assessment of the models at least 20 existing acceleration programsin select countries of Sub-Saharan Africa
• In-depth assessment of 8 acceleration programs (case studies)
• Quantitative venture-level survey of accepted and rejectedentrepreneurs in selected APs
Questions and Definitions
Key research question:• Are accelerators effective?• If so, what makes them effective?• Are they more or less effective in good or challenging ecosystems?
Defining acceleration programmes:• Time bound: max 12 months• Cohort-based: “class” of entrepreneurs• Open intake: some ventures are selected, others not• Provide some form of access to finance and mentorship
Selecting acceleration programs:
• Establishing an ecosystem contrast: Scoring of entrepreneurial ecosystems on 6 ecosystem domains, using a combination of global datasets , 100+ data points (“crowd-intelligence” approach)
• Quantitative scoring of entrepreneurial ecosystems, based on indicators drawn from GEDI, GCI, WB ES, WB DB, Prosperity Index and Innovation Index – scores are relative and normalized
Initial Findings
• While there are 200+ organisations named “accelerators” in SS Africa, we identified 41 that satisfied traditional definition
• 24 APs in 11 Sub-Saharan African countries were assessed• only 39% of the programs put particular emphasis on a rigorous selection
process, involving external judges, investors and entrepreneurs• only 38% actually offers a guaranteed financial grant or investment for
some or all participants • 63% of the sampled APs are predominantly donor- or philanthropy-
funded.• Over 53% have less than 1 mentor available per participant
Types of APs
Supporters Generalists
NetworkersCapital
providers
Key Characteristics of APs in SSA
Differences Between APs
Characteristics Developing Ecosystems Mature Ecosystems
Pro
gra
m
Str
uct
ure
Selection process Reasonably competitive, focus on ventures from same city
or country-wide
Competitive, focus on ventures from around the country and
from neighbouring countries
Technololgy/ Sector focus Rather broad (50% specific) Narrow (73% specific)
Cohort Structure Yes Yes
Length of program On average 4 months On average 7 months
Op
era
tio
ns
Office space offered Majority (78% yes) Minority (22% yes)
Mentoring Yes (88%), small mentor pool Yes (60%), small mentor pool
Technical Assistance Business skills & mentoring Mentoring & access to capital (mainly in the form of pitch
events)
Post-Program Support Limited, mainly access to shared space Yes, networking events & some form of investor connection
Ca
pit
a
l
Funding/Capital No capital raising mandate, some provide guaranteed
grants or investments 28% have capital raising mandate
Equity Stake 40% takes equity – with an average equity share of 3.8% 33% take equity – with an average equity share of 8.7%
Ne
two
rkin
g Networking with Investors Yes (75%) Yes (73%)
Networking with customers &
suppliers Yes (63%) Somewhat (47%)
Cohort & Alumni networking Varies (short but regular) Yes (long and irregular)
Type of Entrepreneurs Served
Regional Acceleration Programs
• Intensive programs consisting of one-on-one mentorship and coaching and access to investors through a combination of residential and virtual training and business model refinement
• Launched in November 2016 in Senegal and Kenya
• Implemented on a regional level
• Each program to identify 40 high-growth potential digital entrepreneurs to support through 6 months program
Pan-African Acceleration Program
• Overall objective: to increase investment readiness of the most promising digital entrepreneurs across the continent
Key Components
Selection of 20
entrepr.
Virtual Mentoring
2-weeks residential program
Demo Day
