4 Business support services: Recommendations
To promote business support services capital providers should:
4.1 Factor in the costs of delivering services that can be more directly linked to improving the profitability of scaling enterprises.
4.2 Seek investment into agri-industrial parks that will integrate SMEs. Strong linkages to farmers and infrastructure should be complemented by measures to develop a skilled labour force.
As part of CASA’s work to strengthen the pipeline of investable enterprises, identified as a key sector challenge, two studies were undertaken to look at specific elements of business support services.
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Effectiveness of agribusiness incubation in emerging markets [33 pages]
Successful incubators offer a wide range of services, including mentors, infrastructure and markets, and link to an ecosystem of early-stage investors who can take on a number of roles within incubatees.
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Agro-industrial parks: success factors, incentive mechanisms and donor roles [81 pages] and its executive summary [6 pages] includes a comprehensive overview of the challenges and success factors regarding driving investment into agri-SMEs.
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State of agri-SME sector – Bridging the finance gap [67 pages]
breaks down the market in a comprehensive and holistic way to show where finance is specifically flowing and recommends ways to address the current agri-SME finance gap.
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AGRF Deal Room 2020 | Effectiveness of agri-business incubation in emerging markets [60 minutes]
To promote business support services capital providers should: also
4.3 Acknowledge donor-funded technical assistance can play an important role in designing smallholder carbon projects, promoting transparency and consistency and long-term impact
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examines the role carbon finance could play in the transition of smallholder agriculture to a more sustainable, productive and resilient future.
Updated July 2023
Summary of recommendations for capital providers