Evaluating the impact of lean startup and growth-focused financing for small-scale entrepreneurs in Kenya and Uganda

The aim of this study is to contribute new insights into how small-scale businesses in developing countries can be supported to grow, and how such support can be delivered cost-effectively and at scale. We do this by conducting a randomised evaluation on the impact of an innovative business development programme that implements the Lean Startup Methodology (LSM) with growth-oriented entrepreneurs in Kenya and Uganda. Balloon Ventures works with international and local volunteers to deliver intense mentorship and hands-on implementation of the LSM, a business development approach that emphasises product experimentation, field-testing and refinement to obtain product-market fit as quickly as possible. After eight weeks, entrepreneurs are given the opportunity to pitch for an interest-free, unsecured loan from Balloon. Through this RCT, we aim to determine the impact of Balloon’s innovative and highly scalable programme, and better understand the mechanisms through which the LSM effects changes in firm performance and growth.
 

Key facts

Stage: Ongoing research
Location: Kenya, Uganda