The nine companies taking part in the South American Accelerator Programme, co-founded by NESsT and IKEA Social Entrepreneurship, will drive sustainable development and inclusive growth across the region.
St. Petersburg, Florida, June 13, 2024–(BUSINESS WIRE)–As part of their efforts to bring tangible social and environmental change to communities in South America, NESsT and IKEA Social Entrepreneurship today announced nine new social enterprises joining the NESsT – IKEA Social Entrepreneurship South America Accelerator Program. Supported by IKEA Chile, Colombia and Peru, the program was launched in 2020 and has supported 17 companies to date.
In 2023, NESsT and IKEA Social Entrepreneurship will expand their partnership to invest in 22 high-potential social enterprises in Chile, Colombia and Peru that are ready to create and sustain 2,500 formal, fairly paid jobs while strengthening environmental practices and sustaining the planet.
The first nine companies are committed to creating dignified jobs and improving the quality of life for marginalized and excluded communities in Latin America. They also prioritize environmental sustainability and gender equality, integrating these important practices into their business models to maximize their impact.
“NESsT’s partnership with IKEA Social Entrepreneurship is a transformative step towards tackling deep-rooted income inequality and environmental challenges in South America,” said Kirsten Duke, CEO of NESsT. “Following our extension of our partnership last year, we are thrilled to welcome nine impactful companies to our joint portfolio, with more to come. By investing in their effective and innovative solutions, we will foster more inclusive and sustainable economies, empower marginalized communities, and drive lasting change.”
The impact of this portfolio will be felt across several key themes, including the use of renewable materials, promoting a circular economy, sustainable agriculture and job inclusion.
The nine companies that will participate in the program, selected from a total of 131 applications in an open call held by NESsT in September 2023, are:
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Agil: A technology company that provides affordable e-commerce solutions to small, micro and family-run businesses in Chile’s HoReCa (Hospitality, Restaurants and Catering) sector, helping food delivery drivers increase their income by up to 20%.
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Amazóniko: A collaborative recycling platform based in Bogotá, Colombia, that provides everyone involved in the recycling process with the knowledge, tools, and incentives to prevent waste from ending up in landfills. It supports a user base of over 16,500 people, recycling 20 tons of reusable material every month.
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Andes Bee: Building on three generations of beekeeping traditions, Andes Bee sources sustainable honey and bee products from small-scale beekeepers in Chiloé region of Chile, increasing their incomes by up to 45% while promoting and developing their work.
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Asoprocegua: A company that supports 250 smallholder farmers in Guaviare, Colombia, cultivating Amazonian fruits such as acai, which are produced naturally in the forest and sourced without cutting down a single tree.
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Disruptia: A Colombian company that uses AI-driven technology to provide accessible training and recruitment services. It has helped 3,000 people find employment, including young people, women, minorities, immigrants, and people over 50.
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Cauca Farmers Federation (FCC): An association that helps nearly 500 small-scale coffee farmers in Colombia’s Cauca region, 30% of whom are women, earn a living and become more climate resilient by diversifying their income sources.
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Fundación Hilo Sagrado: A non-profit company working to improve the lives of 183 indigenous artisans (150 of whom are women) in La Guajira, Colombia, by increasing their income and improving their living and working conditions.
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Novatio: A company providing clean energy solutions to remote rural areas of Colombia. Novatio provides hands-on support to nearly 100 rural households, helping them increase their farms’ energy independence while reducing pollution in their homes and protecting their health.
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Okolo: A Colombia-based company that makes eco-friendly, reusable diapers, promoting their environmental benefits and providing flexible income opportunities for 300 low-income mothers. In its three years of operation, the business has prevented over 116,000 tonnes of CO2 emissions.
“We are pleased to expand our work with NESsT in South America and continue to support social enterprises that are crucial to the region’s future as they manage significant climate risks and widespread poverty,” said Åsa Skogström Feldt, Managing Director of IKEA Social Entrepreneurship. “These nine companies are creating opportunities to build a more inclusive and sustainable economy and benefit local communities for years to come.”
By taking a long-term portfolio approach, NESsT and IKEA Social Entrepreneurship aim to help these companies grow, strengthen their operations and increase their social and environmental impact. In addition to patient capital in the form of refundable grants, companies will receive tailored support across several key areas, including governance, business development and investment readiness. They will also receive assistance in strengthening their diversity, equity and inclusion efforts and environmental practices.
In addition, participating companies will have access to colleagues from IKEA Chile, Colombia, Peru and IKEA Global. Through guided mentoring and masterclasses, entrepreneurs will receive support to innovate and expand their market presence, streamline their operations, develop and introduce new products and services, and strengthen their organizational culture.
“By connecting participating entrepreneurs with IKEA colleagues who are eager to share their expertise and experience, we ensure that each social enterprise receives customized guidance to grow, promoting inclusive practices and equitable opportunities,” said Bernardita Correa Díaz, Sustainability Leader for IKEA Chile, Colombia and Peru. “We hope to inspire the same passion for sustainable business models in other companies and industries in the region.”
About NESsT:
NESsT invests in companies that create quality jobs in disadvantaged communities while sustaining the planet. Since its founding in 1997, NESsT has invested more than $36 million and developed and supported more than 35,000 entrepreneurs in 50 countries. It has accelerated and funded 248 companies, sustaining a total of more than 112,000 full-time jobs and improving the lives of 1.7 million people from the most marginalized communities around the world, including smallholder farmers, Black, Indigenous and ethnic minority groups, LGBTQIA+ communities, immigrants and refugees, people with disabilities, women and youth.
About IKEA’s social entrepreneurship:
Founded in 2018, IKEA Social Entrepreneurship BV invests in social entrepreneurs by providing grants and loans, giving access to new markets and sharing knowledge, enabling them to reach more people and have a greater impact.
IKEA Social Entrepreneurship works with social entrepreneurs who are fighting the root causes of inequality, exclusion and income-earning capacity while creating a more equal and inclusive society. By partnering, supporting and doing business with social entrepreneurs, IKEA Social Entrepreneurship can play a part in transforming communities into places of opportunity for many generations to come. For more information, visit www.ikeasocialentrepreneurship.org.
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Rachel Pennington
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