25 Apr Argidius Foundation Report Finds CEED Model Leads to Job Creation and Revenue Growth
Earlier this month the Argidius Foundation published a report featuring CEED titled: Networking Works: Business Network Organizations help Small and Growing Businesses grow their revenues and create jobs. The report explored the impact that networks can have on business outcomes and found that intentional business networks can generate growth of small and growing businesses (SGBs) over a sustained period of time in a cost-effective manner.
Argidius studied two organizations, Enablis Senegal and our very own CEED Moldova, and found that in both instances, network-based approaches to supporting SGBs have had significant impact on job creation and revenue growth. Both organizations were found to have created new jobs (more than 700 full-time positions together, 380 at CEED Moldova) in a more efficient manner than other types of interventions as demonstrated in the Argidius Foundation graph at right.
The report also 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
- The success of the CEED model can be attributed to six factors:
- Its selective membership of entrepreneurs, as opposed to enterprises
- An engaged support team that recruits well-connected staff with continual learning mindsets
- The needs-based programming that segments new members into different program types and creates people-centric development plans
- Collection of continuous feedback and monitoring on a local, regional and global scale
- The model of proactive trust-building that starts on Day 1
- Its diverse sources of income from membership fees and local partners
- Various actors have a role to play in strengthening business networks, from funders to SGBS to ecosystem builders and SGB-support organizations.
“The Dalberg report for the Argidius Foundation was great validation for the CEED approach. It showed the power of leveraging peer groups to help SGBs. Well-run groups help SGBs make better decisions that lead to better growth,”
-Peter Righi, CEED Global Director
Read the full report here.