CASA Research recommendations digest for capital providers
2 Enabling environment: Recommendations
To better understand the enabling environment capital providers should:
2.1 Consider the broader business ecosystem, as much as the specific target business for their investment, to understand the real challenges facing enterprises and how to address them.
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clarifies the concepts of the ‘missing middle’ in terms of access to finance and the ‘hidden middle’ in terms of access to regulatory authorities. The report also identifies the key roles in the broader enabling environment that are essential for addressing the challenges facing agri-SMEs.
2.2 Be aware that deal sizes will remain small and limited in number due to the fragmented state of the sector; investors’ expectations and financing instruments should be aligned accordingly.
2.3 Develop specific investment tools and approaches for agri-SMEs to increase their willingness to take on third-party debt or equity.
Updated March 2023
Summary of recommendations for capital providers