A supporting document for our 2020–2025 Impact Report, this study analyzes the trajectory of impact businesses supported by Fundo Vale over time and brings together strategic lessons for funders and ecosystem enablers
A study of social and environmental impact businesses participating in programs supported by Fundo Vale reveals initiatives in the process of maturing, with significant progress as well as challenges and valuable lessons about what is needed to achieve greater sustainability and scale. The study, “Structuring Impact Businesses and the Complexity of Support,” was conducted in partnership with Pipe.Social, through Pipe.Labo, and Manacá Tecnologias Sociais, based on Fundo Vale’s impact measurement and management model, GIMPACT.
“Fundo Vale evaluated the trajectory of the impact businesses it has supported to understand how different forms of support contribute to their maturity, financial sustainability and scale. The result of this work ultimately provides a snapshot of what the Amazon bioeconomy ecosystem looks like. We are sharing lessons that can help funders and organizations promote sustainable solutions and collective impact,” says Márcia Soares, Fundo Vale’s Amazon and partnerships manager.
The study drew on information from 114 businesses participating in programs supported by Fundo Vale and run by different ecosystem organizations. In addition, 34 interviews were carried out with a proportional sample of businesses representing the different programs as well as different stages of maturity, revenue ranges and impact profiles. The findings show that the support programs have been effective: most respondents said they were important to their businesses.
From a sectoral perspective, the businesses are concentrated in Agriculture and Food Systems (41%), Forests and Land Use (41%) and Industry (30%), with a strong presence in Amazon bioeconomy value chains such as açaí, cocoa and Brazil nuts, which together account for 77% of the mapped initiatives.
The research findings are presented in three chapters: Profile; Lessons for the Ecosystem; and Opportunities and Demands. The study also consolidates a set of lessons and opportunities to strengthen impact businesses and the ecosystem that supports them:
Lessons for the Ecosystem
- For businesses to develop, it is essential to understand entrepreneurs’ profiles and their strategic views on the support programs.
- The scale and stage of a business’ journey do not necessarily provide a clear indication of maturity.
- Innovation and execution evolve more quickly than governance structures.
- Expansion is a goal, but resources and structure are lacking.
- The contribution of support received and long-term impacts are more relevant during the business-structuring stages.
- Revenue and financing do not guarantee financial sustainability.
- Growth is perceived as a path to financial sustainability.
- Local context: shared decision-making remains a challenge.
- Brand positioning, narrative and communication channels are bottlenecks.
- Some businesses help develop other businesses.
Opportunities and Demands
- Understand entrepreneurs’ profiles and segment programs based on the knowledge and experience they bring.
- Create groups with equal standing in which participants can exchange experiences.
- Offer deeper support focused on specific needs and customize it based on business diagnostics.
- Provide specific benefits that help ensure a sound business structure.
- Improve diagnostics and provide governance and management support.
- Ensure that support incorporates local experience and knowledge.
Access the study to learn more about the findings.