In an exciting development for Mexico’s social enterprise sector, VIWALA and IKEA Social Entrepreneurship have joined forces to launch the Mexico Accelerator Programme (MAP) Fund. The fund introduces an innovative blended finance structure to ensure that high-potential social enterprises from the Mexico Accelerator Programme receive access to financial support to thrive.
The initiative aims to address the pressing financing gap faced by social and environmental MSMEs (micro, small and medium-sized enterprises) in the country and empower impact-driven enterprises by providing tailored debt financing.
Bridging the financing gap for impact-driven MSMEs
MSMEs are vital engines of economic vdevelopment in emerging markets like Mexico. However, many of these businesses encounter significant challenges in securing adequate financing to fuel their growth. According to World Bank estimates, there is a staggering credit gap of $1 trillion for formal MSMEs in such economies. Many MSMEs find themselves in the ‘missing middle’, unable to access traditional financing options due to their size or perceived risk. Impact-driven MSMEs, in particular, face disproportionate barriers, stifling their ability to tackle critical social and environmental issues.
The MAP Fund bridges this gap and paves the way for sustainable growth and inclusive development. In a unique collaboration between VIWALA and IKEA Social Entrepreneurship, the fund takes a blended finance approach, strategically combining funds from IKEA Social Entrepreneurship B.V to unlock additional private funding, culminating in a USD 700,000 fund.
"At VIWALA, we believe that strategic funding holds the potential to ignite transformative changes in Latin America’s business landscape,” commented Karla Gallardo, CEO of VIWALA. “Through our blended finance approach, we fuel the growth of impact-driven SMEs, offering competitive rates and enhanced capital access. Join us in shaping a prosperous and impactful business future in Latin America. Let’s be architects of change together!”
Driving positive impact through tailored debt financing
The MAP Fund caters to the specific needs of enterprises that complete the Mexico Accelerator Program (MAP), co-created by IKEA Social Entrepreneurship and New Ventures. The Mexico Accelerator Programme is part of a four-year partnership between New Ventures and IKEA Social Entrepreneurship to support 40 social enterprises increasing equality, inclusion, and sustainability in the region.
The financial boost enables the enterprises to capitalise on the momentum gained during the accelerator programme, which provides capacity building, networking opportunities, tailored guidance, mentorship and network ecosystem support. Through tailored debt financing, the MAP Fund enables enterprises to invest in crucial areas such as research and development, talent acquisition, marketing, and expansion.
“I’m excited about this addition to the Mexico Accelerator Programme,” says Åsa Skogström Feldt, Managing Director at IKEA Social Entrepreneurship B.V. “Research shows that many social businesses survive for less than two years, and that access to capital is a major challenge. By offering financing tailored to their growth stage and needs, we aim to support entrepreneurs beyond this critical period and on their journey to scale their impact.”
By meeting the financing needs of MSMEs, the MAP Fund will challenge the status quo, promote economic inclusion, and provide opportunities for SMEs to grow, generating positive social and environmental impact.
The initiative aims to address the pressing financing gap faced by social and environmental MSMEs (micro, small and medium-sized enterprises) in the country and empower impact-driven enterprises by providing tailored debt financing.
Bridging the financing gap for impact-driven MSMEs
MSMEs are vital engines of economic vdevelopment in emerging markets like Mexico. However, many of these businesses encounter significant challenges in securing adequate financing to fuel their growth. According to World Bank estimates, there is a staggering credit gap of $1 trillion for formal MSMEs in such economies. Many MSMEs find themselves in the ‘missing middle’, unable to access traditional financing options due to their size or perceived risk. Impact-driven MSMEs, in particular, face disproportionate barriers, stifling their ability to tackle critical social and environmental issues.
The MAP Fund bridges this gap and paves the way for sustainable growth and inclusive development. In a unique collaboration between VIWALA and IKEA Social Entrepreneurship, the fund takes a blended finance approach, strategically combining funds from IKEA Social Entrepreneurship B.V to unlock additional private funding, culminating in a USD 700,000 fund.
"At VIWALA, we believe that strategic funding holds the potential to ignite transformative changes in Latin America’s business landscape,” commented Karla Gallardo, CEO of VIWALA. “Through our blended finance approach, we fuel the growth of impact-driven SMEs, offering competitive rates and enhanced capital access. Join us in shaping a prosperous and impactful business future in Latin America. Let’s be architects of change together!”
Driving positive impact through tailored debt financing
The MAP Fund caters to the specific needs of enterprises that complete the Mexico Accelerator Program (MAP), co-created by IKEA Social Entrepreneurship and New Ventures. The Mexico Accelerator Programme is part of a four-year partnership between New Ventures and IKEA Social Entrepreneurship to support 40 social enterprises increasing equality, inclusion, and sustainability in the region.
The financial boost enables the enterprises to capitalise on the momentum gained during the accelerator programme, which provides capacity building, networking opportunities, tailored guidance, mentorship and network ecosystem support. Through tailored debt financing, the MAP Fund enables enterprises to invest in crucial areas such as research and development, talent acquisition, marketing, and expansion.
“I’m excited about this addition to the Mexico Accelerator Programme,” says Åsa Skogström Feldt, Managing Director at IKEA Social Entrepreneurship B.V. “Research shows that many social businesses survive for less than two years, and that access to capital is a major challenge. By offering financing tailored to their growth stage and needs, we aim to support entrepreneurs beyond this critical period and on their journey to scale their impact.”
By meeting the financing needs of MSMEs, the MAP Fund will challenge the status quo, promote economic inclusion, and provide opportunities for SMEs to grow, generating positive social and environmental impact.