Driving economic transformation with Growth Firms Alliance
Growth Firms Alliance (GFA) is a new alliance of philanthropic funders dedicated to unleashing the potential of growth firms to transform low- and middle-income countries and drive widespread improvements in wellbeing.
Small Foundation is delighted to join Argidius, Ikea, Lemelson, Visa and Vitol Foundations as a founding member of GFA.
The GFA members define growth firms as small and medium-sized enterprises that are operating in an emerging market with potential and explicit intention to at least double their revenue and/or employment over a five-year period.
“Growth firms are at the heart of economic growth, particularly in low-income communities, creating jobs, improving livelihoods, and driving innovation. GFA is uniting system actors into a collaborative coalition, demonstrating the power of aligned efforts and shared resources to amplify impact. This is the kind of change the world needs to see, and we need more examples.” – Olawale Ajiboye, Coordinator, Growth Firms Alliance
GFA seeks to improve shared learning and practice to support growth firms between its own members. We will also collaborate with systemic actors to elevate the importance of growth firms and cultivate effective systems of finance and support for growing firms.
As an example of GFA’s early work, in December 2024 in The Hague, Small Foundation joined other GFA members, representatives from development finance institutions (DFIs) and investment platform fund managers for an exchange of ideas and practical learning around supporting the evolving SME investment fund landscape in emerging economies. We are grateful to FMO for co-hosting this initiative.
“Coming together as the Growth Firms Alliance has been a powerful experience aligning on systemic barriers constricting the transformative potential of growth firms. I’m excited to see what we can achieve by coming alongside the growing set of champions we are identifying the world over.” – Harry Devonshire, Argidius Foundation
Small Foundation shares our fellow founding members’ strong commitment to supporting ecosystem development, improving knowledge and data, as well as market creation initiatives for growth firms.
Small Foundation believes GFA will spur the coordination of increased and more effective GFA member funding to SMEs across sub-Saharan Africa, including rural-impacting SMEs that are at the heart of Small Foundation’s strategy. We are excited to learn from the other alliance members as much as to share insights from our own work. Where there is alignment and additionality, we envisage opportunities to co-fund research and/or investment opportunities with other alliance members.
Another goal is for other investors in growth firms, and the systems that support growth firms, to have a channel for learning from and with GFA members. We have already received feedback that in some instances, it will be more efficient for others to engage with an alliance rather than the individual foundations.
We also see opportunities to connect across other collective initiatives and industry bodies; over time there is the potential for this type of coordination between funders and innovators to bring increased transparency and clarity around opportunities for partnership to advance common goals.
We will share more information about our participation in GFA as the initiative develops.
For more general information about GFA, please visit the GFA website or contact Olawale Ajiboye, GFA coordinator, on wale@growthfirmsalliance.com.
