The program:
NESsT and IKEA Social Entrepreneurship launched the first South America Accelerator program in 2020, which invested in 17 social enterprises, sustaining 1,500 jobs for excluded individuals across the region.
Building on the impact and learnings of the first program, NESsT is launching a new accelerator with the goal to support social enterprises to create and maintain 2,500 formal, fairly-compensated jobs and conserve the planet.
Through this open call, we seek to welcome an initial cohort of 10 new social enterprises from Chile and/or Colombia into the program. Over the course of the next three years, we aim to extend this support to a total of 22 new companies.
During their time in the accelerator program, entrepreneurs (and their teams) receive direct business assistance from the NESsT Portfolio Managers, participate in workshops and events alongside other entrepreneurs in NESsT’s global portfolio, and access mentoring with IKEA professionals around the world. Additionally, they also access flexible financing that meets their needs. On average, social enterprises participate in the NESsT acceleration portfolio for 2-3 years.
“The learnings from other accelerator programs that we co-created with IKEA Social Entrepreneurship have laid a strong foundation for the new program. With this launch, we are thrilled to welcome a new cohort of enterprises in South America that are creating formal, well-paid jobs with career growth potential while conserving the planet, further amplifying their impact in the region. ”
Who should apply?
We are looking for social enterprises in Chile and Colombia that are in the validation phase (enterprises with a validated product or service but cannot support operations) and enterprises entering the growth stage (enterprises whose sales cover initial operations but cannot sustain growth.)
Social enterprises that would be the best fit for this portfolio have a stable team that demonstrates potential to scale their business and social and environmental impact. We will also be considering enterprises that face obstacles when accessing financing from traditional sources due to the high-impact nature of their businesses, and that can most benefit from the advisory and mentoring services provided by the program.
Enterprises in the following sectors are encouraged to apply:
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Generally speaking, these are business models that focus on finding value in used items. We’re also interested in models that provide livelihood opportunities for marginalized communities.
Examples are enterprises in the secondary raw material market that collect, sort, and recycle materials such as plastic, textiles, electronic waste, and metals. In the waste management sector, preference will be given to models that can involve people or organizations that are currently working informally. We are also looking for enterprises with consumer-facing services and products with ‘care and repair’, recycling, and upcycling approaches and platforms that encourage the use of second-hand products.
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Social enterprises with business models that train, employ, and place people, specifically individuals from marginalized communities, in formal jobs, creating quality employment opportunities and addressing talent gaps. The excluded groups supported may include at-risk youth, especially women, people with disabilities, migrants, refugees, traditional communities, etc.
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Social enterprises that are part of supply chains for renewable products, such as sustainable farming or fishing, or have farm-to-table type models, where the goal is to support small producers and make the market fairer.
In this case, social impact comes from improving the lives and well-being of small producers, their families, and the marginalized communities that are connected to or affected by the processes of production, transformation, and providing agricultural services. We are also interested in models that focus on the role of women and youth in these efforts and those that support small farmers to transition and adapt to climate change, ensuring they earn a dignified income and making supply chains shorter and more transparent.
Social Impact
The program seeks enterprises with the potential to directly employ, place into employment, or increase the income, directly or indirectly, of at least 50–150 people from marginalized communities in the next 3 years.
We are seeking engaged partners that demonstrate a commitment to supporting one or more of the following communities:
At-risk youth
Women
Smallholder producers (farmers, fishers, etc.)
Ethnic minorities
People with disabilities
Migrants and refugees
Clear Growth Opportunity
Selected enterprises offer an attractive product or service with evidence of demand that may include:
Participation in a market that is expanding, or opportunity to enter a new market (customer segment, new geographic area, etc.).
Opportunity to double sales in the next 18-24 months.
If the enterprise has not yet reached break-even, it demonstrates the potential to become profitable in the next 12–18 months.
Enterprises with annual sales of at least USD $100,000 are preferred. Enterprises that do not have sales of USD $100,000 but demonstrate potential for high impact should still consider applying.
Strong Team
Enterprises should have a competent management team driven by strong ethical values and that is respected and integrated in the communities in which they operate.
Entrepreneurs/founders are shareholders and form part of the executive team.
Preference for teams with a minimum of 4–6 people
Enterprises will have at least one woman on the management team or show a strong commitment to increasing the number of women in management positions in the next 12 months.
Financing Available:
Type of financing:
Recoverable grants equivalent to soft, long-term, interest-free loans
Grants (evaluated on a case by case basis)
Investment amount per social enterprise:
Average investment of a total of USD $50,000 throughout participation in the program
In our portfolio, investments to enterprises have ranged from USD $20,000 to $90,000 over a 2–3 year period
Examples of the use of financing:
Business model validation
Product/service improvement
Improvement/installation of the operations model
Sales and marketing capacity expansion
Digital platform development, digital transformation, and implementation of new technologies
Systems to track social impact
Working capital
Certification processes
During the initial selection stage, our portfolio team will schedule interviews with shortlisted enterprises and stakeholders. We will also conduct site visits and meetings to develop a deeper understanding of your social enterprise and your growth prospects. This will include a deep dive into your company’s operations, team, and its social and environmental impact.
Next, the portfolio management team will draw up investment memos/reports to present your business to two external investment committees. After this stage, the final decision on whether your business will enter the portfolio will be made. The selection and due diligence process may take up to 3–4 months from the date of application. During this time, your enterprise will receive suggestions, ideas, and recommendations.
Commitment
By applying to the accelerator program, social enterprises and their teams commit to allocating time to work with portfolio managers, engaging in the program’s required activities and upholding NESsT’s core values:
Creating jobs that pay fair wages and prices and contribute to providing a quality of life for excluded and marginalized people
Addressing diversity, equity, and inclusion in the workplace and implementing corresponding practices
Incorporating environmental sustainability practices into their business and social impact models
How to apply
Review the application form and prepare all required information, including a video (see below)
Create a short video of no more than 3 minutes, where you explain:
The business model
The social impact: the at-risk community you seek to support and the role of the enterprise in their lives
How you think your social enterprise can benefit from the acceleration program
Upload the video to YouTube and copy and paste the link into the application form when prompted
Submit the application by October 15th, 2023
Questions
Visit our FAQ page for answers to commonly-asked questions about the application process.