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Launch of India's first outcomes-based facility for nano entrepreneurs

The British Asian Trust, 360 ONE Foundation, and BT Group have announced the launch of the Nano Entrepreneurship Sustainability & Transformation (NEST) Outcomes Facility, India’s first-ever outcomes-based finance (OBF) initiative for nano entrepreneurs. The $4 million facility will harness the proven power of OBF to shift the focus from inputs to outcomes, targeting ambitious income growth for nano entrepreneurs over the next four years.

 

By 2030, India is projected to have the world's largest workforce, with approximately 970 million youth entering the job market, far surpassing the rate of job creation in the country. While self-employment is rising – accounting for 58% of India's workforce in 2023–24 – it remains precarious, unproductive, low-paying, and informal. 

Nano enterprises, which are ultra-small, agile businesses often run from homes, streets, or mobile setups, represent the backbone of India’s grassroots economy. Today, 11 million nano enterprises already employ nearly 20 million people, providing vital income and powerful pathway to generate sustainable livelihoods locally, particularly for women and those who are less willing or able to migrate for jobs. 

NEST Outcomes Facility Hero Image

Despite their potential, the ecosystem and efforts to support nano entrepreneurs remain fragmented, with piecemeal support and limited accountability to end outcomes in existing programmes. Without adequate support, fewer than half of new nano entrepreneurs sustain their businesses after one year. 

The NEST Outcomes Facility aims to change this trajectory by using the principles of outcomes-based financing (OBF) to bring higher accountability to end outcomes of improved incomes and enhanced resilience, ensuring that nano entrepreneurs’ businesses move from fragile to future-ready, from struggling to successful, and from surviving to sustainable.  

OBF provides an efficient and effective financing and delivery solution to the challenges faced by the nano entrepreneurship ecosystem by:  

  • Linking funding to verified outcomes to ensure skin in the game and razor-sharp focus on business growth and resilience. 
  • Aiming for higher-than-average targets such as achieving a net income of ₹1,00,000 annually per entrepreneur and at least 25% income growth over the period. 
  • Encouraging process innovation by giving implementing partners flexibility while maintaining accountability and providing robust performance management support. 
  • Generating robust evidence and benchmarks for what works in entrepreneurship support. 

 

 

 

By using fit-for-purpose OBF tools such as pay-for-results contracts and outcomes guarantee, NEST Outcomes Facility aims to galvanise domestic capital from CSR, foundations, philanthropies to foster a culture of accountability, rigour, and learning in a sector that is vital for India’s inclusive growth.  

NEST Outcomes Facility’s first cohort will support nano entrepreneurs across urban and rural India, working through expert partners such as Pratham Education Foundation and CInI (Collectives for Integrated Livelihood Initiatives), with businesses spanning textiles, beauty, digital services, and agriculture. The independent evaluator is LEAD at Krea University and ecosystem partner is YuWaah. 

This first-of-its-kind initiative is backed by the British Asian Trust as anchor, 360 ONE Foundation as Founding Partner & Funder, and BT Group as Programme Funder. Together, these partners bring the financial, technical, and strategic leadership needed to pioneer a new outcomes-based model for nano entrepreneurship in India. 

NEST Logo

Speaking about the initiative, Bharath Visweswariah, Executive Director - India, British Asian Trust said: “Drawing on our deep track record with OBF in India, we aim to drive efficiency and effectiveness in how nano entrepreneurship is financed and delivered. NEST Outcomes Facility will not only transform the lives of thousands of nano entrepreneurs, who stand to become the backbone of India’s economy, but also create vital learning for the livelihoods sector as a whole.”  

Saumya Lashkari, Director and Board Member, 360 ONE Foundation, said: “We are proud to be a Founding Partner and Funder for NEST. We are moving beyond traditional approaches by tying funding to verified results – not just measuring, but paying for ambitious outcomes for nano entrepreneurs, with collective accountability for impact; raising the bar on impact – profits over revenues, formal over informal, sustainability over start-up, real transformation over token activities; and using data as a performance driver for improved delivery – moving beyond reporting to fuel performance, innovation, and continuous learning. We invite other donors and funders to join us in reshaping how philanthropy supports nano entrepreneurship in India!” 

Ian McBride, Head – Social Impact India, BT Group said: “BT Group is committed to facilitating inclusive growth – and nano entrepreneurship is a promising pathway to this. NEST enables us to support women and young entrepreneurs in India with the tools, confidence, and financial resilience they need to thrive.” 

 

NOTES 
About 360 ONE Foundation: 
360 ONE Foundation, part of 360 ONE WAM (a leader in wealth and asset management), reinforces the group’s commitment to maximise both financial and social returns. The Foundation has re-imagined traditional grant-giving and pioneered a more catalytic approach powered by blended finance and outcome-based financing. By unlocking further capital, recycling funds, co-funding, and a strong focus on achieving measured outcomes, the Foundation’s innovative approach generates higher leverage on its grants, thereby delivering exponential impact for underserved communities. 
For more information, visit https://www.360.one/about-us 

About BT Group: 
BT Group is the UK’s leading provider of fixed and mobile telecommunications and related secure digital products, solutions and services. BT Group consists of three customer-facing units: Consumer serves individuals and families in the UK; Business covers companies and public services; Openreach is an independently governed, wholly owned subsidiary wholesaling fixed access infrastructure services to its customers - over 700 communications providers across the UK.  
British Telecommunications plc is a wholly owned subsidiary of BT Group plc and encompasses virtually all businesses and assets of the BT Group. BT Group plc is listed on the London Stock Exchange. 
For more information, visit www.bt.com/about