The survival of an early-stage startup rarely depends solely on financial resources, and it is not achieved in isolation. The leap towards scaling up requires structured guidance, where business development services, mentoring, and exposure to early corporate clients are essential. 

In most cases, these capabilities are provided by Entrepreneurship Support Organizations (ESOs). ESOs include incubators, accelerators, universities, innovation hubs, company builders, and corporate venture clienting offices.  

These key entities within the ecosystem currently face chronic structural constraints that compromise their sustainability and, with it, their ability to drive innovation across various sectors.  

IDB Lab partners with ESOs to create enabling conditions for impact-driven entrepreneurs and innovators.  By strengthening these organizations, IDB Lab not only mitigates the structural fragility affecting startups but also transforms technical and strategic support into an asset that revitalizes the region’s most vulnerable markets.

The Structural Problem Goes Beyond Capital 
 
Startups struggle to achieve product-market fit and to scale sustainably, primarily due to a lack of internal technical capabilities, networks, and structured support. 

These barriers particularly affect companies with 5-250 employees, many of which operate in rural or low-income areas with weak business ecosystems. 

In markets such as Colombia, the Colombia 2026 Report by Bridge for Billions & ANDE identified what it termed a “scaling cliff,” where institutional support drops off sharply just as companies mature and require more growth capital. 

Empirical evidence has shown that strategic support is vital and effective: within acceleration programs, initiatives with high impact potential tripled their revenue in four years, which is double the growth observed in comparable companies that did not receive such support.

A Critical but Still Fragile Layer 

IDB Lab and Latimpacto conducted a survey of 124 SEEs in 14 countries as part of the Catalytic Green Fund. The survey revealed that, paradoxically, although these organizations demonstrate robust technical foundations and effectively reach vulnerable populations such as women, youth, and rural entrepreneurs, their structural constraints severely limit their long-term impact.  

Furthermore, according to 2025 data from both institutions:

• 42% operate on annual budgets of less than $400,000.
• Three out of four have chronically fragile financial structures.
• Only 23% specialize in a single type of enterprise, which dilutes their strategic focus and operational efficiency.

Compounding these vulnerabilities is the fact that a significant portion of ESOs operate under private-sector models and are evaluated through the lens of the traditional commercial sector, ignoring their role in building ecosystems and providing specialized services that public institutions cannot offer directly.  

The result is limited attention in public policies, a low level of long-term financing, and insufficient long-term funding to strengthen their capacities.

IDB Lab’s Strategy: Strengthening ESOs to Scale Innovation  

In response to this assessment, IDB Lab acts through its ecosystem building and acceleration strategy, with interventions tailored to different levels of maturity—ranging from capacity building in nascent innovation markets to commercial scaling and connections with investor networks in more developed environments.

According to IDB Lab data, between 2021 and 2025, 58 projects totaling $85.1 million were approved, directly strengthening 245 ESOs which, in turn, support nearly 5,000 startups across the region.

Two projects stand out for their significant multiplier effect on the ground: 
 
The Green Innovation Hub (GreenHub): Developed in partnership with Climate KIC, this project strengthened 26 ESOs and accelerated more than 150 climate technology startups. Half of the companies increased their sales, 35 expanded into new international markets, 12 raised capital, and some increased their revenue by up to 63%, in addition to forging 108 new strategic partnerships.  

The impact achieved through this initiative extends beyond the project itself: the four original implementing ESOs now operate their own ClimAccelerators independently in Colombia, Chile, Brazil, and Bolivia, and eight additional organizations have replicated the model using their own resources and third-party funding from companies such as Bayer and Coca-Cola. 

The Way of the Panther: Developed in partnership with the Pantera Makers accelerator in the Colombian Amazon, this project has demonstrated that it is feasible to provide high-quality support to the most isolated regions. Out of 721 applications, 220 bio-businesses were supported, all of which sustainably transform natural resources and local knowledge into value-added products.  

The indicators for this project go beyond its multiplier effect and demonstrate results with significant social impact, such as its inclusion component: two-thirds of the supported businesses are led by women, one-third have founders from indigenous ethnic groups, and more than half already reinvest over 10% of their revenue in local regenerative practices. 

From Business Acceleration to Systemic Transformation 

The leap towards scaling up is essential for organizations that coordinate the ecosystem. Investing in them multiplies the social and economic impact and extends it beyond the projects’ lifecycles.  

By strengthening the technical quality, geographic reach, and financial sustainability of ESOs, IDB Lab not only supports individual firms but also builds a steady stream of investment-ready companies, thereby boosting our region’s aggregate productivity.