LEAP III 2020 Strategic Review of the USAID PACE Initiative

In 2013, USAID launched the Partnering to Accelerate Entrepreneurship (PACE) Initiative to catalyze private-sector investment to enable the growth of small and growing businesses (SGBs) operating in emerging economies. PACE-funded activities bridge the pioneering gap by 1) investing in early-stage enterprises, 2) encouraging approaches that combine private capital and philanthropy, 3) researching and sharing lessons learned, 4) testing ways to incubate entrepreneurs and connecting them with investors, and 5) making lending to entrepreneurs less risky through guarantees. Once SGBs have secured initial financing, their potential to continue to grow, through financing from the private sector, is increased. This strategic review assessed the progress of the PACE Initiative through 2020. The review relied on data from all 28 PACE-funded activities but focused primarily on 20 intermediary partners that supported SGBs and received funding between FY 2017 and FY 2020. These intermediaries managed a total of eleven closed and nine active PACE-funded activities. The findings of the 2020 review presented in this report build on the results and findings of the 2017 mid-term strategic review of the PACE Initiative (Dalberg 2017 USAID 2018).