This report offers insights into the role of European foundations in supporting small and growing businesses (SGBs) across emerging and developing economies (EMDEs), with a focus on how they deploy catalytic capital.

Key Findings:
1. Less than half of foundations investing in SGBs in EMDEs do so with the explicit goal of mobilizing third-party capital.
2. Due to constraints related to risk tolerance, return expectations, and liquidity, endowments are unlikely to serve as a major source of catalytic capital for SGB financing. However, they themselves could be leveraged or catalyzed into the space.
3. Many foundations have shown growing interest in expanding partnerships with public sector actors.

The report also outlines recommendations for how public actors can support European foundations in more effectively deploying catalytic capital to SGBs in EMDEs. 

European Foundations: Their Investments in Small and Growing Businesses in Emerging Markets and Their Perspective on Catalyzing Third-Party Investments

European Foundations: Their Investments in Small and Growing Businesses in Emerging Markets and Their Perspective on Catalyzing Third-Party Investments - Relevant Deals - Convergence Knowledge Library

European Foundations: Their Investments in Small and Growing Businesses in Emerging Markets and Their Perspective on Catalyzing Third-Party Investments

Dutch Ministry of Foreign Affairs, SAGANA