VIWALA, a Mexican company that grants loans with social impact and a gender focus, and IKEA Social Entrepreneurship have joined forces to launch the Mexico Accelerator Program (MAP). This is a joint program with New Ventures that seeks to finance businesses that have gone through acceleration stages.
This is the MAP Fund, an innovative blended funding structure to ensure high-potential social enterprises receive access to financial support to thrive.
The initiative aims to address the pressing financing gap faced by social and environmental SMEs (Small and Medium Enterprises) in the country and empower impact-driven businesses by providing them with customized debt financing.
The challenges of financing
SMEs are vital drivers of economic development in emerging markets like Mexico. However, many of these companies face significant challenges in obtaining adequate financing to fuel their growth. According to World Bank estimates, there is a staggering $1 trillion credit gap for formal SMEs in these economies.
Many of these companies find themselves unable to access traditional financing options due to their size or perceived risk. Additionally, they face disproportionate barriers, stifling their ability to address critical social and environmental issues. The MAP closes this gap and will pave the way for sustainable growth and inclusive development.
The MAP Fund and its combined financing
In a unique collaboration between VIWALA and IKEA Social Entrepreneurship, the MAP Fund takes a blended funding approach. This strategically involves funding from IKEA Social Entrepreneurship BV to unlock additional private funding, culminating in $700,000.
We believe that strategic financing has the potential to initiate transformative changes in the Latin American business landscape. Through our blended financing approach, we will drive the growth of impact-driven businesses by offering competitive financial services.
Karla Gallardo, CEO of VIWALA.
Mexico Accelerator Program 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.
Support and access to capital
The financial boost allows companies to build on the momentum gained during the accelerator program, which provides capacity building, networking opportunities, personalized guidance, mentoring and network ecosystem support. Through customized debt financing, the MAP Fund enables companies to invest in crucial areas such as research and development, talent acquisition, marketing and expansion.
“I am excited about this addition to the Mexico Accelerator Program. Research shows that many social enterprises survive less than two years and that access to capital is a major challenge. By offering financing tailored to their stage of growth and needs, we aim to support entrepreneurs beyond this critical period and on their path to scaling their impact,” says Åsa Skogström Feldt, CEO of IKEA Social Entrepreneurship BV.
Finally, the MAP Fund will challenge the status quo, promote economic inclusion and provide opportunities for SMEs to grow, generating positive social and environmental impact.
Editorial Team The editorial team of EMPRENDEDOR.com, which for more than 27 years has worked to promote entrepreneurship.