The NESsT – IKEA Social Entrepreneurship Latin America Accelerator Program

Building on the impact and learnings of the first program, NESsT has launched a new accelerator with the goal to support social enterprises to create and maintain 2,500 formal, fairly-compensated jobs and conserve the planet.

Through this open call, they seek to welcome an initial cohort of 10 new social enterprises from Chile and/or Colombia into the program. Over the course of the next three years, they aim to extend this support to a total of 22 new companies.

During their time in the accelerator program, entrepreneurs (and their teams) receive direct business assistance from the NESsT Portfolio Managers, participate in workshops and events alongside other entrepreneurs in NESsT’s global portfolio, and access mentoring with IKEA professionals around the world. Additionally, they also access flexible financing that meets their needs. On average, social enterprises participate in the NESsT acceleration portfolio for 2-3 years.

Financing Available

• Type of financing:
  • Recoverable grants equivalent to soft, long-term, interest-free loans
  • Grants (evaluated on a case by case basis)
• Investment amount per social enterprise:
  • Average investment of a total of USD $50,000 throughout participation in the program
  • In their portfolio, investments to enterprises have ranged from USD $20,000 to $90,000 over a 2–3 year period
• Examples of the use of financing:
  • Business model validation
  • Product/service improvement
  • Improvement/installation of the operations model
  • Sales and marketing capacity expansion
  • Digital platform development, digital transformation, and implementation of new technologies
  • Systems to track social impact
  • Working capital
  • Certification processes

Who should apply?

• NESst is looking for social enterprises in Chile and Colombia that are in the validation phase (enterprises with a validated product or service but cannot support operations) and enterprises entering the growth stage (enterprises whose sales cover initial operations but cannot sustain growth.)
• Social enterprises that would be the best fit for this portfolio have a stable team that demonstrates potential to scale their business and social and environmental impact. They will also be considering enterprises that face obstacles when accessing financing from traditional sources due to the high-impact nature of their businesses, and that can most benefit from the advisory and mentoring services provided by the program.
• Enterprises in the following sectors are encouraged to apply:
  • Circular economy
  • Inclusive employment and professional development
  • Sustainable agriculture/fishing
• Social Impact
  • The program seeks enterprises with the potential to directly employ, place into employment, or increase the income, directly or indirectly, of at least 50–150 people from marginalized communities in the next 3 years.
  • They are seeking engaged partners that demonstrate a commitment to supporting one or more of the following communities:
    • At-risk youth
    • Women
    • Smallholder producers (farmers, fishers, etc.)
    • Ethnic minorities
    • People with disabilities
    • Migrants and refugees
• Clear Growth Opportunity
  • Selected enterprises offer an attractive product or service with evidence of demand that may include:
    • Participation in a market that is expanding, or opportunity to enter a new market (customer segment, new geographic area, etc.).
    • Opportunity to double sales in the next 18-24 months.
    • If the enterprise has not yet reached break-even, it demonstrates the potential to reach it and become profitable in the next 12–18 months.
• Strong Team
  • Enterprises should have a competent management team driven by strong ethical values and that is respected and integrated in the communities in which they operate.
    • Entrepreneurs/founders are shareholders and form part of the executive team.
    • Preference for teams with a minimum of 4–6 people
    • Enterprises will have at least one woman on the management team or show a strong commitment to increasing the number of women in management positions in the next 12 months.
  • Annual sales of at least USD $100,000 are preferred. Enterprises with sales below USD $100,000 but that are able to demonstrate strong potential for social impact, should still consider applying.

For more information, visit NESsT.