On 16 June 2025, SPARK, through its intervention in Egypt under the European Union–funded Green Forward programme, and in partnership with the Hivos as part of the Green Growth Summit Cairo 2025, co-hosted a dynamic panel with Hivos titled “Seizing the green opportunity: Strengthening Business Support Organisations (BSOs) in a new funding landscape,”.

The panel brought together leaders from the private sector, civil society, and government to explore how BSOs can remain resilient, relevant, and equipped to support green startups navigating an increasingly complex policy and funding environment.

The Green Growth Summit 2025, convened by Hivos with the support of the Ministry of Foreign Affairs of the Netherlands through the Challenge Fund for Youth Employment (CFYE), is a high-level event bringing together Egypt’s leading green economy actors and providing a platform for showcasing innovation, exchanging knowledge, and building strategic connections to advance Egypt’s green economy. The summit was organised in partnership with various partners including SPARK, Finance in Motion, advisor to the Green for Growth Fund; and implemented by New Silk Roads.

The panel highlighted the evolving challenges and emerging opportunities for Business Support Organisations (BSOs) across the region. The following sections outline the main takeaways that emerged from the session.

Rethinking BSO support in a rapidly evolving green and circular economy

Business Support Organisations (BSOs) are playing an increasingly pivotal role in enabling green start-ups to access finance, navigate policy frameworks, and scale climate-conscious solutions. Yet the support landscape is shifting. Traditional donor models are becoming narrower and shorter-term, while entrepreneurs demand more tailored, technical, and locally relevant support. During the Green Growth Summit 2025 in Cairo, SPARK and Hivos took the opportunity to reflect on how BSOs in Egypt and across the region must evolve to meet this moment. The panel featured:

• Afef Ajengui, Regional Programme Manager, SPARK
• Mohamed Abbas, Expert , Ministry of Industry / Misr El Kheir Foundation
• Yehia Houry, Managing Director, Flat6Labs
• Jackie Kameel, Executive Director, Nahdet El Mahrousa

Key challenges facing BSOs in Egypt’s green and circular economy

During the panel discussion, three key challenges facing BSOs were highlighted:

1. Shrinking and shifting funding streams

A core concern was the narrowing window of traditional donor support. Over the past several years, international donors have become more restrictive, prioritizing short-term, theme-specific interventions (such as digital transformation) over flexible, long-term investments in green innovation. This shift leaves many BSOs underfunded and struggling to maintain core operations. Mrs Afef Ajengui (SPARK) addressed this directly, pointing out that current funding mechanisms often overlook the infrastructure that supports start-ups.

“We need to invest in the ecosystem itself, not just its stars,” she said.

Her call for match-funding models where donor grants are tied to private investment highlighted a path toward greater sustainability and impact.

2. Fragmented ecosystem and reactive programming

While some BSOs in Egypt are ahead of the curve, many remain reactive, designing programmes based on donor trends rather than long-term strategic priorities. This fragmentation leads to gaps in services and prevents the formation of a cohesive, supportive green start-up ecosystem.

Dr Mohamed Abbas (Misr El Kheir Foundation) emphasised the need for stronger policy alignment and multi-stakeholder dialogue. He shared that many BSOs, especially outside Cairo, lack the capacity to align with national green strategies, which undermines both local implementation and regulatory coherence.

“We need regular feedback loops,” he said, “so the realities on the ground can shape smarter, more responsive policies.”

3. Mismatch between entrepreneur needs and BSO services

Green entrepreneurs today are more sophisticated, focused, and vocal about their needs. They require support that is industry-specific, technically sound, and delivered quickly. Yet many BSOs still operate with broad, one-size-fits-all programming.
Mr Yehia Houry (Flat6Labs) noted that the start-up lifecycle is accelerating, making traditional incubation models less effective.

“Founders are moving at a faster pace and with higher expectations. BSOs need to match that pace,” he said.

He argued that existing funding models, especially equity-based investments, do not fit many early-stage green ventures. Instead, he suggested alternatives such as revenue-based financing, grants, and concessional capital to address the financing mismatch.

Strategic solutions and emerging practices

To address these challenges, three actionable solutions were proposed during the discussion:

1. Diversify and localise funding models

To reduce dependency on traditional donors, panelists advocated for diversified, blended models. Mrs Ajengui proposed a match-funding initiative, where private capital is leveraged alongside donor grants. This not only stretches resources but also fosters accountability and market validation.

Mrs Kameel shared her organisation’s innovative model at Nahdet El Mahrousa, where BSOs act not only as supporters but also as early clients for green start-ups.

“We buy from them whether it is solar systems or sustainable products because that creates revenue and trust,” she explained.

This approach serves as both an endorsement and a commercial boost for entrepreneurs trying to gain traction.

2. Enhance BSO capabilities and sectoral focus

BSOs must shift from generic support to modular, specialised services that reflect the unique technical and financial needs of green ventures. This means investing in internal training and ecosystem intelligence.

Dr Abbas stressed the importance of institutional capacity building particularly at the governorate level. He highlighted the need for BSOs to understand green policy frameworks and regulatory pathways so they can effectively guide start-ups through complex government systems.

3. Foster ecosystem collaboration and cross-regional learning

Panelists agreed that BSOs must work as a network, not in silos. Cross-border collaboration, peer-to-peer learning, and region-wide platforms can help replicate successful models and avoid duplication.

Mrs Ajengui reinforced this idea, advocating for BSOs to engage in collaborative knowledge exchange not just with each other but across borders.

“We need to stop reinventing the wheel,” she said. “Let’s build tools and platforms together.”

In this context, SPARK developed the SPARK Innovation Hub platform within the framework of the Green Forward programme, with the aim of fostering knowledge exchange and collaboration among programme stakeholders, particularly BSOs. Once the selection of BSOs across the programme’s seven countries of intervention is finalised, the online hub will serve as a portal to discover and connect with BSOs dedicated to supporting green MSMEs across the Southern Mediterranean region.

What innovation means for BSOs

To reinforce the strategic insights discussed during the panel, two successful initiatives were presented as practical examples of how BSOs can reimagine their roles and funding models in the green economy. These initiatives demonstrate how targeted innovation can build not only start-up success but also institutional resilience for BSOs themselves.

The first example was a match-funding initiative that combines donor grants with private investment. Under this model, BSOs serve as ecosystem connectors: identifying green start-ups, facilitating investor engagement, and validating business models. If a private investor commits funding, the programme provides a matching grant thereby de-risking the investment and increasing the start-up’s chances of scaling. This approach creates a more dynamic and accountable funding pipeline, while positioning BSOs as strategic brokers of trust and capital.

The second example focused on BSOs as early adopters and clients of the solutions developed by the start-ups they support. For example, purchasing solar energy systems, climate-resilient greenhouses, or eco-friendly prosthetics directly from the start-ups themselves. This model not only generates immediate revenue for entrepreneurs but also builds confidence among other investors and stakeholders. It strengthens the relationship between BSOs and start-ups while reinforcing the market potential of green innovations.

Forward-looking priorities for Egypt’s green start-up ecosystem

The panel made clear that strengthening BSOs requires collective action across civil society, government, and the private sector. A shared strategy emerged, focused on financial sustainability, continuous learning, stronger collaboration, and alignment with entrepreneurs’ evolving needs. These forward-looking priorities offer a roadmap for transforming Egypt’s BSOs into resilient, responsive pillars of the green economy:

1. Build financially sustainable BSO models

To reduce reliance on short-term, inflexible donor cycles, BSOs must develop diversified revenue streams. These can include consultancy services, paid capacity-building programmes, or private-sector-backed accelerators. Mrs Jackie Kameel emphasised this model shift, encouraging BSOs to reposition themselves as market-driven service providers capable of generating their own income and reinvesting in their impact.

Therefore, BSOs can gain financial independence while retaining the flexibility to meet emerging ecosystem needs by developing business models that embed revenue generation.

2. Institutionalise knowledge and capacity

Green entrepreneurship is evolving quickly, and so must the organisations that support it. Continuous internal learning is critical. Dr Mohamed Abbas (Misr El Kheir Foundation) stressed the importance of equipping BSOs with up-to-date knowledge on green technologies, investment instruments, and policy frameworks.

He noted that many BSOs, particularly those operating at the governorate level, struggle to guide start-ups through complex, fragmented regulations. Regular technical training and institutional capacity building will help BSOs deliver credible, technically grounded support.

3. Facilitate networked learning

A fragmented ecosystem is a fragile one. To build long-term resilience, BSOs must actively engage in peer-to-peer exchange, coalition-building, and shared learning across regions. Mrs Afef Ajengui and Mr Yehia Houry both advocated for cross-regional collaboration among BSOs in Egypt and the broader MENA region.

Such collaboration would allow organisations to replicate successful models, co-create support tools, and build a stronger collective voice in influencing funders and policymakers. A more connected ecosystem is also more agile and better equipped to identify gaps, share resources, and respond to rapidly shifting start-up needs.

4. Strengthen policy engagement channels

BSOs should not remain on the sidelines of the green policy agenda. Instead, they must be formally engaged in shaping and implementing green economy strategies, particularly in underserved regions where proximity to entrepreneurs provides invaluable grassroots insight.

Dr Abbas called for structured mechanisms such as multi-stakeholder roundtables and formal feedback loops to ensure BSOs are both informing and adapting to regulatory changes. This two-way engagement is vital for aligning national strategies with on-the-ground realities.

5. Adopt entrepreneur-centric design

Effective support starts with understanding what entrepreneurs actually need and where they are. Mr Yehia Houry emphasised that BSOs must become more agile, modular, and geographically responsive. He noted that start-up expectations have evolved: founders now demand tailored, fast-moving, sector-specific assistance that reflects their financial and technical realities.

BSOs should move away from standardised programming and instead offer flexible, customisable services that meet entrepreneurs on their terms, especially those operating outside Cairo and Alexandria or in emerging green sectors.

Together, these priorities form a comprehensive strategy for building the next generation of BSOs: financially independent, technically capable, deeply networked, and driven by the real-world needs of green entrepreneurs. As the summit made clear, BSOs are not just enablers, they are architects of a greener, more inclusive economy.

The Green Growth Summit underscored a clear message: Green transition, in Egypt and across the Southern Mediterranean region, depends on reinforced, future-ready BSOs. SPARK and its partners are committed to this shift, and by supporting organisations that not only serve but lead, they envision a support ecosystem as dynamic and transformative as the green start-ups it nurtures.

As Afef Ajengui (SPARK) concluded,

“We need to support the ecosystem itself, not just its stars. When BSOs thrive, start-ups and the green economy can truly flourish.”