Innovative inclusive business solutions are often limited by existing regulation, or because legal foundations are missing; this was initially the case for microfinance and mobile money. Moreover, as BOP markets are mainly informal, companies find it difficult to establish and enforce contracts. At the company level, corporate rules and structures can limit their ability to innovate in BOP markets. Corporate business development processes, for example, often do not allow for longer-term investment or high levels of uncertainty. In addition, in many countries, non-profit organisations (NPOs) can be limited in regards to their earned income strategy.

Legal framework for business with a social mission

Description

Governments can support and facilitate social enterprises by acknowledging their special character and contribution. By officially defining “business with a social mission” as a form, the government creates a basis from which it can provide direct support for these enterprises. Defining specific legal forms is uncommon; however, doing so means the government can implement tax exemptions or reductions; provide low-cost loans; devise favorable public procurement mechanisms; expand on fiduciary duties to reflect stakeholders other than shareholders; or provide technical assistance.

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Public-private partnerships

Description

A public-private partnership (PPP) is a long-term contract between a private party and a government entity, for providing a public asset or service, in which the private party bears significant risk and management responsibility, and remuneration is linked to performance.[1] PPPs enable the public sector to mobilize additional financial resources and to benefit from the expertise and efficiencies of the private sector.

PPP models differ with respect to the degree of sharing of resources, responsibilities, and risks. Typical models include a public service concession, joint venture, and management contract. More recently the PPP concept has broadened to incorporate a wider range of actors and cooperation models including:

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Legal framework for market participation of the BOP

Description

A legal framework for market participation makes it easier for the BOP to take part in companies’ value chains. Policies that empower the BOP through the legal system include formalizing informal firms; granting official identification document; and ensuring low-income people and groups have the appropriate land titles.

A thorough understanding of the workings of the BOP market is a precondition for improving the legal framework for market participation. For informal markets for example, reliable data on the number of people involved, transaction volumes, or typical conflicts and business issues are rarely available, as these transactions and businesses never show up in revenue offices or courts. Participatory research with the target group will not only reveal challenges, but will also point to potential solutions.

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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

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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».

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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 ». 

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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”. 

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Company case study – Brazil – Banco do Brazil

Banco do Brazil (BB) is a Brazilian financial institution with expressive performance in promoting economic and sustainable development. It assists more than 25 million customers in Brazil and abroad. BB’s main objective is to contribute to social development aligned with public policies and the demands of the society.

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Certification and Accreditation - Policy Case Study on Inclusive Business

Introduction

The policy instrument of a legal certification (also called accreditation) shares many qualities with the mission-oriented legal structure policy instrument developed in a separate policy note.  Legal structures and certifications both serve as tools to distinguish a business for its special character and contributions to society. They thereby create a basis for the provision of direct support, either financial or non-financial or both.

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