A field experiment on the impact of seed grants on the performance of faith-based social enterprises in a blended value ecosystem

Purpose This study aims to examine the influence of seed grant funding on the performance of faith-based social enterprises (FBSEs) in Africa, operating within a blended value ecosystem. Design/methodology/approach Using data from a field experiment and survey involving 122 congregational social ventures across Kenya, Uganda, Tanzania and Zambia, the study used both quantitative and qualitative approaches to assess the impact of seed grants on four key performance indicators: productivity, revenue growth, customer acquisition and employment creation. Findings The results revealed that productivity benefits from seed grants were statistically significant and pronounced among agricultural ventures and those in the growth phase. However, the effects on revenue, customer and employee growth were muted, indicating that such impacts may materialize over a longer period as enterprises consolidate operations and expand market reach. Cross-country comparisons showed consistent positive influence of seed grants on performance, though with varying magnitudes, reflecting differences in institutional readiness, market environments and absorptive capacities. Qualitative findings corroborated these results, highlighting that FBSEs often reinvest productivity gains into service expansion and community outreach rather than immediate financial returns. Practical implications Overall, the study underscores the importance of strategic seed grant utilization, especially through blended models that combine financial capital with capacity-building and technical assistance, to enhance the sustainability and social impact of FBSEs in Africa. Originality/value The study offers perhaps the first cross-country empirical analyses of Catholic sister-led social enterprises in Africa, that have been largely overlooked in mainstream research. The study advances an understanding of how seed grants catalyze productivity, growth and sustainability in faith-based ventures, thereby extending theory and practice on blended value creation in resource-constrained contexts in the majority world.