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Orange Corners
Orange Corners programmes (OC) are an initiative of the Ministry of Foreign Affairs, executed and managed by RVO. These programmes support young entrepreneurs in Africa, the Middle East, and Asia in turning creative ideas into successful startups. The programme offers incubation and acceleration programmes that train young entrepreneurs and provide access to networks and facilities to launch or expand their businesses.
Local implementing organizations can apply for grants to develop incubator and accelerator programmes over a period of four to five years. In 2023, the Orange Corners subsidy programme for 2024-2028 was announced with a total budget of €12 million for the first two rounds of subsidies. In March 2024, a third round of subsidies was announced, specifically targeting the Palestinian territories and Senegal, with each having a maximum subsidy amount of €600,000.
Orange Corners Innovation Fund (OCIF)
OCIF supports the incubation and acceleration programmes by providing flexible financing in the early stages. The fund consists of two tracks: OCIF Track I offers entrepreneurs up to €5,000 in support, while OCIF Track II makes up to €50,000 per company available. The fund, originated from a pilot between 2019-2021, is fully operational in nine countries between 2021 and 2025. With a total budget of €12.6 million, local fund managers can apply for subsidies up to €1.4 million per location. Following a positive impact evaluation of OCIF, the decision was made to expand the programme to all OC programme countries.
Distinctive features of the OC and OCIF programmes
Orange Corners distinguishes itself by offering an integrated approach for young entrepreneurs, especially in pre-commercial stages. The programme adapts to local contexts and collaborates with local implementing partners (an ecosystem approach), without the need for new infrastructure. Moreover, the programmes work closely with Dutch embassies, strengthening diplomatic relations and providing visibility at the political level.
Focus of the evaluation
This evaluation focuses on understanding the mid-term effects of the programmes on young entrepreneurs and their businesses, specifically targeting the 2021 alumni. The research explored five themes, ranging from the impact on personal development and business development to broader challenges within the entrepreneurial ecosystems. The research utilized a mix of methods, including desk research, interviews, and case studies conducted through site visits and online conversations.
Results
Reach
The Orange Corners (OC) programme has been successful in reaching young entrepreneurs in Africa, the Middle East, and Asia, including in vulnerable states such as Iraq and Sudan. In 2021, 5,111 entrepreneurs applied, with 294 participants selected, highlighting a highly competitive process. The companies are active in various sectors, especially in agriculture (21%) and ICT (12%). The gender distribution was unequal, with 38% female applicants, highlighting challenges for women.
Personal Development
Participants appreciated the mix of training, mentorship, and networking in the programme. They developed key skills such as recognizing opportunities and making decisions under uncertainty. Access to financing was also indicated as essential for many. The programme has had a positive impact on generating income for the participants, with OCIF participants more often having their businesses as the primary source of income compared to Orange Corners-only participants. The programme also stimulated new follow-up enterprises and strengthened networks, with alumni often staying in touch and mentoring new participants.
Business Development
In 2021, 81% of the participating businesses survived the first three years, well above the world average. The support from OCIF increased survival rates and stimulated business development with improvements in strategy and finances. OCIF-supported businesses reached more milestones than those without, indicating the positive effect of OCIF.
Ecosystem and Implementation
Entrepreneurs face many challenges including in financing and market access. Orange Corners provides effective mentor support but has less impact on market access and international networking. Success varies by region, depending on the quality of implementing partners and the general accessibility of entrepreneurial support in the region. Dutch embassies play a crucial role in international cooperation, contributing to the programme's success.
Recommendations for the future
The evaluation emphasizes that the programmes are continuously learning and refining. The management is open to adjusting the programmes as needed, as evidenced by their willingness to invest in monitoring, evaluation, and learning. We provide the following points for consideration:
- Positioning: Determine whether Orange Corners and OCIF should have a broad focus on entrepreneurship or specifically on scalable, innovative startups.
- Programme Integration: We recommend keeping Orange Corners and OCIF as a single package, requiring coordination between the organizations.
- Support Levels: Increase support before and after the incubator and accelerator programmes to enhance impact.
- OCIF Track III: At this time, we recommend not making a new investment in an OCIF Track III and devoting more time to evaluating OCIF Track II.
- Personal Development Goals: Formulate personal development goals alongside business development goals.
- Cohort Homogeneity: Where possible, aim for more homogeneity within cohorts to increase effectiveness.
- Sector-Specific or Agnostic: Opt for more homogeneous groups when the size of the entrepreneur population allows.
- Visibility and Independence: Consider a separate budget for Orange Corners and OCIF for better visibility (and accountability).
- Collaboration with other donors: Consider maximizing Dutch investment by collaborating with other donors, but this requires a political decision.
