Designing Sustainable Startup Support for Rwanda and Kenya

Abstract

Innovation-centered entrepreneurship drives economic development. It is also a method for addressing the environmental and social issues that result from and impair economic growth. The rapid and continued economic progress in Rwanda and Kenya in the last decade has shown the power of entrepreneurship ecosystems- interconnected people and things supporting startups. However, amid this growth and potential, how can an impact be made on environmental and social concerns also? This project sought to design a solution to help innovation hubs in Rwanda and Kenya increase their positive impact to sustainability. Innovation hubs include incubators, accelerators, and other programs that support entrepreneurs in creating and growing their businesses. They are the first stop for many new entrepreneurs as they begin their ventures. As a result, hubs can significantly influence startups and the larger entrepreneurship ecosystem. This project had two aims: Understand the current entrepreneurship ecosystems in Rwanda and Kenya Design a solution to help hubs increase their impact on people, the planet, and prosperity (three Ps) Literature and field research was conducted to create a picture of the ecosystems in which hubs operate. The ecosystem was explored by interviewing representatives of the most common stakeholder groups. This investigation identified stakeholders' opportunities and challenges in supporting entrepreneurship and sustainability. Then, hubs were interviewed to understand their current practices and needs. Finally, a model was developed to assess the impact of hub program activities based on behavior change theory. This model allowed hubs to understand their potential influence directly instead of estimating it based on startups' performance. This model was used within the design of a toolkit. The toolkit guides hubs to reflect on their activities and policies through a thee Ps sustainability lens. This process guides hubs to upgrade their current program and generate ideas for new activities to meet their sustainability goals. The toolkit also includes a pilot template to help hubs identify resources to test their impact ideas. For example, in testing, the use of the tool led to an upgraded environmental sustainability workshop for one hub. The new workshop will allow them to reach 3X more entrepreneurs annually. Hubs often struggle to find sufficient funding and resources for their current programs. The toolkit helps them to optimize their existing resources. Facilitated sessions also lead hubs to identify the new people and financial resources they may need to implement their new ideas. Using a sustainability lens helps ensure hubs make the impact they seek and entrepreneurs get the support they need, now and in the future.