This article was originally published in Business Wire.
The nine enterprises to join the South America Accelerator Program, co-created by NESsT and IKEA Social Entrepreneurship, are set to drive sustainable development and inclusive growth across the region.
St. Petersburg, FLORIDA. -– In efforts to catalyze tangible social and environmental change for communities in South America, NESsT and IKEA Social Entrepreneurship announced today the nine new social enterprises to join the NESsT - IKEA Social Entrepreneurship South America Accelerator Program. The program, supported by IKEA Chile, Colombia, and Peru, started in 2020 and has supported 17 enterprises to date.
In 2023, NESsT and IKEA Social Entrepreneurship extended their partnership to invest in 22 additional high-potential social enterprises in Chile, Colombia, and Peru poised to create and maintain 2,500 formal, fairly compensated jobs while strengthening their environmental practices and sustaining the planet.
The first nine of these enterprises are committed to creating dignified jobs and enhancing the quality of life of marginalized and excluded communities in South America. These enterprises also prioritize environmental sustainability and gender equity, integrating these crucial practices into their business models to maximize their impact.
NESsT acceleration portfolio enterprise Okolo produces eco-friendly reusable diapers while providing flexible income opportunities to low-income mothers.
“The partnership between NESsT and IKEA Social Entrepreneurship is a transformative step toward addressing South America’s deep-rooted income inequalities and environmental challenges,” said Kirsten Dueck, NESsT CEO. “Following the extension of our partnership last year, we are delighted to welcome nine high-impact companies into our co-created portfolio, with more in the pipeline. By investing in their effective, innovative solutions, we are fostering a more inclusive and sustainable economy, strengthening communities that are marginalized, and driving lasting change.”
The portfolio's impact will be felt across several key themes, including the use of renewable materials, the promotion of a circular economy, sustainable agriculture, and job inclusion.
The nine enterprises joining the program, selected from a total of 131 applications to the open call held by NESsT in September 2023, include:
Agil: A tech enterprise that brings affordable e-commerce solutions to small, micro, and family-run enterprises in the HoReCa (Hospitality, Restaurants, and Catering) industry in Chile and supports food delivery drivers to earn up to 20% higher income.
Amazóniko: A collaborative recycling platform based in Bogotá, Colombia that provides everyone involved in the recycling process with knowledge, tools, and incentives to prevent waste from ending up in landfills. It supports a user base of over 16,500 individuals to recycle 20 tons of reusable materials every month.
Alma del Panal: Building upon three generations of beekeeping tradition, Alma del Panal sources sustainable honey and bee products from small beekeepers in the Chiloé region of Chile, increasing their income up to 45% while promoting and advancing their work.
Asoprocegua: An enterprise that supports 250 small farmers in Guaviare, Colombia to cultivate Amazon fruits such as açaí that are naturally produced in forests and can be sourced without cutting down a single tree.
Disruptia: A Colombian enterprise that uses AI-driven technology to provide accessible training and recruitment services. It has supported 3,000 people in finding work, including youth, women, ethnic minorities, migrants, and people over the age of 50.
Federación Campesina del Cauca (FCC): An association that supports close to 500 small-scale coffee farmers in Cauca, Colombia, 30% of whom are women, to earn a living income and become more climate resilient by diversifying their income streams.
Fundación Hilo Sagrado: A non-profit enterprise that works to improve the livelihoods of 183 Indigenous artisans in La Guajira, Colombia, 150 of whom are women, by increasing their income and enhancing their living and working conditions.
Novatio: An enterprise that brings clean energy solutions to remote farming communities in Colombia. It provides close to 100 rural families with hands-on support to make their farms more energy self-sufficient, while reducing household pollution and protecting their health.
Okolo: A Colombia-based enterprise that produces eco-friendly reusable diapers and promotes their environmental benefits, while providing flexible income opportunities to 300 mothers from low-income families. In the business's three years of operation, it has prevented the emission of over 116,000 tons of CO2.
"We are excited to expand our work with NESsT in South America and to continue to support social enterprises that are pivotal for the future of a region managing significant climate risks and widespread poverty,” said Åsa Skogström Feldt, Managing Director, IKEA Social Entrepreneurship. "These nine enterprises are building a more inclusive, sustainable economy and creating opportunities that will benefit their local communities for years to come."
By adopting a long-term portfolio approach, NESsT and IKEA Social Entrepreneurship aim to position these enterprises for growth, strengthening their businesses and increasing their social and environmental impact. In addition to patient capital in the form of recoverable grants, enterprises will have access to tailored support across several key areas including governance, business development, and investment readiness. They will also benefit from assistance to strengthen diversity, equity, and inclusion initiatives and environmental practices.
Additionally, participating enterprises will gain access to co-workers from IKEA Chile, Colombia, and Peru and IKEA global. Through guided mentoring and masterclasses, entrepreneurs will receive support to innovate and expand their market presence, increase efficiency in their operations, develop and introduce new products and services, and strengthen their organizational culture.
“By connecting participating entrepreneurs with IKEA co-workers eager to share their expertise and experiences, we ensure each social enterprise receives tailored guidance to grow while fostering inclusive practices and equitable opportunities,” shared Bernardita Correa Díaz, Sustainability Leader, IKEA Chile, Colombia, and Peru. “We hope to ignite the same passion for a sustainable business model in other companies and industries throughout the region.”
About NESsT
NESsT invests in enterprises that create quality jobs for underserved communities while sustaining the planet. Since its founding in 1997, NESsT has invested over $36M and trained and supported over 35,000 entrepreneurs across 50 countries. It has accelerated and financed 248 enterprises, in total sustaining more than 112,000 formal jobs and improving the lives of 1.7 million people from the most marginalized communities around the world, including smallholder farmers, Black people, Indigenous Peoples, ethnic minorities, the LGBTQIA+ community, migrants and refugees, people with disabilities, women, and youth.
About IKEA Social Entrepreneurship
Founded in 2018, IKEA Social Entrepreneurship B.V invests in social entrepreneurs by providing grants and loans, giving them access to new markets, and sharing our knowledge so they can reach more people and have a bigger impact.
IKEA Social Entrepreneurship works with social entrepreneurs who are creating a more equal and inclusive society, while also fighting the root causes of inequality, exclusion and the ability to earn an income. By collaborating, supporting and doing business with social entrepreneurs, IKEA Social Entrepreneurship can play a part in transforming communities into places that are full of opportunities for many generations to come. Learn more at: www.ikeasocialentrepreneurship.org
Media Contact
Rachael Pennington, Communications Specialist
NESsT
rpennington@nesst.org
Hilo Sagrado on cover photo.