What impact can networks have on business outcomes? According to the Argidius Foundation’s report “Networking Works: Business Network Organizations help Small and Growing Businesses grow their revenues and create jobs,” intentional business networks cost-effectively generate growth of small and growing businesses over a sustained period of time.
The report analyzes data from Enablis Senegal and CEED Moldova and found that both networks embody six key success factors common among the Foundation’s highest performers. The report has recommendations for funders, ecosystem builders, capacity building organizations, and the small and growing business they support.
The report found that:
- CEED Moldova’s members are growing at nearly 24% per year on a compounded basis, higher than the OECD definition of a high-growth firm
- Both CEED Moldova and Enablis Senegal have created new jobs more efficiently than other types of interventions, creating jobs at less than 20% of the cost of other types of interventions
- There is emerging evidence that peer-to-peer networks increase revenues for SGBs.
- CEED has a high-impact model because of six interconnected success factors: proactive trust-building, diverse sources of income, selective membership, engaged support team, needs-based programing, and continuous feedback and monitoring
- Funders should pay attention to business networks that support SGBs and consider the case for investment, and SGBs should consider joining business networks because they are a cost-effective way to receive support.
This report is well-timed as CEED adds a Learning and Impact Manager to its global team to better track the impact of CEED Centers on revenue growth and high-quality job creation. Read the report here.