Increasing the reach and impact of technical assistance (TA) funding

Rural-impacting micro, small and medium-sized enterprises (MSMEs) in the agricultural sector have the potential to significantly improve local economies and livelihoods. However, agribusinesses often struggle to generate attractive returns due to low margins, high operating costs, multiple risks and difficulties in achieving scale. These MSMEs frequently lack access to talent, leading to critical capacity limitations in strategic thinking, financial planning, operations, and other core business functions. 

Open Capital Advisor’s report presents a range of design and delivery mechanisms, using compelling case studies to showcase how provision of Technical Assistance (TA) facilities can address challenges and stimulate growth for agribusinesses and other MSMEs. While their potential for impact is evident, a major constraint for TA facilities is that they are often fully grant subsidised, limiting their ability to scale. Through this research, Small Foundation sought to explore whether TA can be deployed in a more sustainable manner through recycling of capital. The report identifies several factors to consider in TA facility design which affect its recycling potential and long-term viability. 

For the full range of findings and insights please find the report here.