Many inclusive businesses face external and internal constraints, both at the BOP market level and at the company level. Challenges differ in degree and type from those typically encountered by businesses in developing and emerging economies and may also differ depending on the company’s approach to inclusive business. Constraints at both the market and company levels have been identified along four broad dimensions: information, rules and regulations, financial resources, and capacity. Where these can be reduced, inclusive businesses can grow and achieve greater impact.

Align business support services

Description

Business development services (BDS) are a “wide array of non-financial services critical to the entry, survival, productivity, competitiveness, and growth” of BOP businesses.[1] BDS interventions can be an effective instrument for policy makers to support private sector growth in BOP markets. For inclusive businesses, BDS can be delivered in the form of operational and strategic business consultancies, skills transfer, marketing assistance, cost management, and technology development. Although BDS do not include direct financial support, they can be used to facilitate access to credit and other financial services, such as banking and financial planning.

BDS providers, such as government agencies, NGOs, private firms, or industry associations should perform comprehensive assessments of the local BOP market and develop their services in collaboration with their clients according to their specific needs. In order to be effective and sustainable, services should be provided in a business-like manner at affordable prices and should build upon the existing local models. Successful BDS providers will empower inclusive business entrepreneurs and drive private sector growth in BOP markets. They can provide knowledge, networks, and support to pilot inclusive business models.

Policy Instruments: Countries: Topics:
ICT

Development partnerships

Description

Development partnerships are agreements between public and private sector entities to pursue a shared set of development goals. Ideally, such partnerships combine public sector outreach and resources with private sector entrepreneurialism and skills. Development partnerships, in contrast to the more traditional Public Private Partnership (PPP), are entirely voluntary, although the government can make such projects more attractive to private sector partners by offering incentives such as favorable tax terms, co-financing, infrastructure access, and policy changes. 

For governments, collaborating with the private sector brings many benefits, including access, resources, technology, and data and expertise. For private partners, such agreements can increase business opportunities or market share, increase reputation and provide a “social license to operate,” and/or greater access to suppliers.

Development partnerships can be implemented on different levels and with a wide variety of partners, from small, local companies to large multinational firms. The role of each stakeholder within development partnerships is not pre-determined; governments, private companies, and other actors can take on many roles.

At the onset of a partnership it is important to align on goals and definitions of success, as well as monitoring and reporting requirements. Challenges can occur in the implementation phase of development partnerships as public and private sector partner often do not have the same understanding of an issue, have different procurement or operational rules, or operate under different timelines.

Policy Instruments: Topics:
ICT

Training programs

Description

Vocational skills are key to enabling the BOP to participate in value chains. Low productivity linked to the lack of marketable skills acts as a significant barrier towards inclusive business growth. In this context, vocational training is an important precursor to BOP participation and to inclusive growth.

Partnerships with different stakeholders, in particular with the private sector, can assist in skills-needs identification, curriculum development, training delivery, as well as certification and assessment processes to ensure that vocational training is aligned with market demand and subsequently leads to employment. The private sector can also be involved by providing internships, apprenticeships, and job opportunities as well as coaching and mentoring support.

Policy Instruments: Countries: Topics:

Event: Alleviating Poverty through Inclusive Business – Berlin, Germany – May 5, 2017

Alleviating Poverty through Inclusive Business: Policy Dialogue on Building an Enabling Environment for Inclusive Business through Public Private Collaboration

Policy Instruments: Sectors:

Innovar juntos - estrategia de fomento de los nuevos modelos de economía social e inclusiva a nivel internacional (Gobierno de Francia)

En los países del sur, los modos de desarrollo actuales debilitan el entorno social y ecológico. La pobreza, la exclusión, el trabajo precario, la sobreexplotación de los recursos naturales y la contaminación constituyen amenazas a la esperanza de una vida digna para cientos de millones de personas y ponen en peligro el futuro del planeta. Por ello, es urgente «actuar de otro modo».

Policy Instruments: Countries: Topics:

Innover Ensemble - Stratégie de promotion des nouveaux modelés de l’économie sociale et inclusive à l’international (Gouvernement de la France)

Dans les pays du Sud, les modes de développement actuels fragilisent l’environnement social et écologique. La pauvreté, l’exclusion, le travail précaire, la surexploitation des ressources

naturelles et la pollution sont autant de menaces qui compromettent tout espoir de vie décente pour des centaines de millions de personnes et mettent en péril l’avenir de la planète. Il est

donc urgent d’« agir autrement ». 

Policy Instruments: Countries: Topics:

Innovating Together - Promotion Strategy for New Social and Inclusive Economy Models Abroad (Government of France)

Background

In developing countries, current development models weaken the social and ecological environment. Poverty, exclusion, insecure employment, overexploitation of natural resources and pollution are all threats that compromise any hope of a earning a reasonable standard of living for hundreds of millions of people and put the future of our planet in danger. We urgently need to “act differently”. 

Policy Instruments: Countries: Topics:

Company case study – Brazil – Energisa Paraíba

Executive Summary

The mission of Energisa Paraiba is to transform energy into comfort and development, by offering its customers energy and social solutions (ENERGISA, 2015). Located in Paraiba state’s capital João Pessoa, the company focuses its efforts on engaging with vulnerable communities into economic development initiatives that promote income generation and employment.

Policy Instruments: Sectors: Countries: Topics:

Company case study – Brazil – Beraca

The socio-biodiversity program was created by Beraca in 2000. It covers the Personal Care sector, the biodiversity natural products of the food ingredients, animal nutrition and health sectors. The program purchases inputs – fruits and seeds used in the final products – from communities whose economic activity is based on the extraction industry.

Policy Instruments: Sectors: Countries: Topics:

G20 Inclusive Business Report for the 2016 Summit