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Orange Corners
The 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 programmes offer incubation and acceleration programmes that train young entrepreneurs and provide access to networks and facilities to launch or expand their businesses.
Local implementation organisations 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 2024-2028 was announced with a total budget of €12 million for the first two subsidy rounds. In March 2024, a third subsidy round was announced specifically targeting the Palestinian territories and Senegal, with each having a maximum grant amount of €600,000.
Orange Corners Innovation Fund (OCIF)
OCIF supports the incubation and acceleration programmes by providing flexible financing at an early stage. The fund consists of two tracks: OCIF Track I offers entrepreneurs up to €5000 in support, whereas OCIF Track II makes up to €50,000 available per company. The fund, originating from a pilot between 2019 and 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 stands out by offering an integrated approach for young entrepreneurs, especially in pre-commercial stages. The programme adapts to local contexts and works with local implementing partners (an ecosystem approach), without the need for new infrastructure. Additionally, the programmes are in close collaboration with Dutch embassies, which also strengthens diplomatic relations and provides visibility at the political level.
Focus of the Evaluation
This evaluation focuses on understanding the medium-term effects of the programmes on young entrepreneurs and their businesses, specifically targeting the 2021 alumni. The research examined five themes, ranging from the impact on personal development and business development, to broader challenges within the entrepreneurial ecosystems. The research utilised a mix of methods, including desk research, interviews, and case studies conducted through both site visits and online discussions.
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%). Gender distribution was uneven, with 38% female applicants, emphasising challenges for women.
Personal Development
Participants appreciated the mix of training, mentorship, and networking in the programme. They developed key skills such as identifying opportunities and making decisions under uncertainty. Access to funding was also indicated as essential for many. The programme had a positive impact on generating income for the participants, with OCIF participants more likely to have their businesses as a primary source of income compared to Orange Corners-only participants. The programme also encouraged 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 companies survived the first three years, well above the world average. Support from OCIF increased survival chances and stimulated business development with improvements in strategy and finances. OCIF-supported companies achieved more milestones than those without, indicating the positive effect of OCIF.
Ecosystem and Implementation
Entrepreneurs face various 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 to 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 highlights that the programmes continuously learn and refine. Management is open to adjusting the programmes as necessary, demonstrated 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 broadly focus on entrepreneurship or specifically on scalable, innovative startups.
- Linking of Programmes: We recommend keeping Orange Corners and OCIF as a single package, requiring coordination between the organisations.
- Support Levels: Increase support before and after the incubator and accelerator programmes to enhance impact.
- OCIF Track III: At present, we do not recommend new investment in an OCIF Track III and suggest spending more time evaluating OCIF Track II.
- Personal Development Goals: Alongside business development goals, formulate personal development goals.
- Cohort Homogeneity: Where possible, strive for more homogeneity within the cohorts to increase effectiveness.
- Sector-Specific or Agnostic: Opt for more homogeneous groups when the size of the entrepreneurial population permits.
- Visibility and Independence: Consider a separate budget for Orange Corners and OCIF for improved visibility (and accountability).
- Collaboration with Other Donors: Consider maximising Dutch investment by collaborating with other donors, but this requires a political decision.
