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Symposium 2013

Making Microentrepreneurship Inclusive

The Challenge

Inclusive businesses are defined as businesses that explicitly include the poor in their value chains, as customers, suppliers or workers. These businesses could potentially benefit the poor through four different mechanisms: supply chains, employment, products/services and distribution channels. The market at the base of the pyramid is large and growing fast and people’s willingness to pay is potentially high because people living in villages and slums often pay more and get less than elsewhere – a phenomenon known as the “poverty penalty”.

Microenterprises currently fill this market, but will they be priced out of the market by international corporations or are they themselves the inclusive businesses we are looking for? Unless microenterprises grow into small and medium-sized businesses, the livelihood they produce may merely be one small step above poverty.

How should inclusive business models be designed to contribute to solving the problems of world poverty? Key questions include the model (should inclusive businesses be designed as social businesses?), management (how best to include the poor to ensure their fair representation?) and stakeholder and investor relations. Can what makes inclusive businesses successful be transferred to other businesses and countries? To what extent does the institutional and political environment shape the business?

Inclusive businesses face a number of specific challenges both internally and externally, as well as the low financial sustainability of many micro start-ups. Is there a role for governments to support the reach of micro- and medium-sized credit to help the growth of the more promising ideas and cushion the rest?

Part of the issue cluster "Poverty in the Midst of Plenty"

    Solutions

    Solution
    Symposium 2013

    Improve access to affordable (low interest) finance for micro-entrepreneurs and SMEs

    Improve access to affordable (low interest) finance for micro-entrepreneurs and SMEs

    Improve access to affordable (low interest) finance for micro-entrepreneurs and SMEs

    Polity, Academia, Business, Civil Society
    Solution
    Symposium 2013

    Access to finance alone does not help if micro-entrepreneurs do not know how to best make use of them

    Access to finance alone does not help if micro-entrepreneurs do not know how to best make use of them

    Access to finance alone does not help if micro-entrepreneurs do not know how to best make use of them

    Polity, Academia, Business, Civil Society
    Solution
    Symposium 2013

    Give more of a voice to the large number of politically powerless micro-entrepreneurs

    Give more of a voice to the large number of politically powerless micro-entrepreneurs

    Give more of a voice to the large number of politically powerless micro-entrepreneurs

    Polity, Academia, Business, Civil Society

    Proposals

    Proposal
    Symposium 2013

    Harnessing technology to scale microenterprises

    Making large companies more inclusive is a compelling idea. It could be a quick solution which would have a very large effect due to the very size of those companies and the reach they command. Howeve ...

    Making large companies more inclusive is a compelling idea. It could be a quick solution which would have a very large effect due to the very size of those companies and the reach they command. However, getting large companies to invest in developing countries is still a challenge. Developing countries are fundamentally a more risky proposition. In Bangladesh FDI jumped considerably back in 2003 but has been stubbornly stuck for a decade now at around $800 million a year – less than 1% of GDP, despite considerable Government efforts by successive governments to show Bangladesh as an investment friendly destination

    Polity, Academia, Business
    Proposal
    Symposium 2013

    Growing strong micro-enterprises or large-scale inclusive businesses – what helps best in fighting global poverty?

    The Bottom of the Pyramid (BOP) refers to to describe the four billion people that are currently living on less than $2.50 per day. This group has been neglected by many corporations that often target ...

    The Bottom of the Pyramid (BOP) refers to to describe the four billion people that are currently living on less than $2.50 per day. This group has been neglected by many corporations that often target the wealthier upper tiers of the pyramid. This has resulted in the mushrooming of micro enterprises that cater to the basic needs of the BOP in most parts of the developing world. These micro enterprises are often conceived informally by entrepreneurs that lack the means and resources to expand their business beyond their immediate communities. More recently, some large corporations have begun to take an

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2013

    Scaling Micro-enterprises

    In any country in the world SME’s are seen as one of the key drivers of growth and supporting the SME sector is a given. The developing world has seen a huge rise in micro-enterprises, with the grow ...

    In any country in the world SME’s are seen as one of the key drivers of growth and supporting the SME sector is a given. The developing world has seen a huge rise in micro-enterprises, with the growth in micro-finance legendary. Whilst microfinance was originally conceived as a primary finance provider for micro-enterprises, it has also now grown into an industry enabling financial inclusion for the world’s poor and is just as much, if not more, about providing personal finance as it is about providing small loans to tiny businesses. One of the main criticisms of microfinance has been that

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2013

    Micro Entrepreneurship - In the Light of PRAN Dairy Hub

    An evident rise of micro entrepreneurship and its contribution to a “DO-it- Self” economy has strengthen the platform of monetizing ones assets and knowledge. The media has named this growing tren ...

    An evident rise of micro entrepreneurship and its contribution to a “DO-it- Self” economy has strengthen the platform of monetizing ones assets and knowledge. The media has named this growing trend as “The Rise of the Creative Class”, “The Gig Life” or “The Freelance Economy”. It is built on the empowerment of individuals and the technology that enables it. One example of this is “PRAN Dairy Hub”; a sister concern of PRAN-RFL Group, that is a commercial conglomerate in food processing and plastic, serving local & export markets since 1981. Raw milk of PRAN is collected from farmers and PRAN

    Polity, Academia, Business, Civil Society
    Proposal
    Symposium 2013

    Making Microentrepreneurship Inclusive

    It is high time that governments in Asia address the fickle nature of capital flows which are increasingly disconnected from the needs of the real economy, and which continue to perpetuate the growth ...

    It is high time that governments in Asia address the fickle nature of capital flows which are increasingly disconnected from the needs of the real economy, and which continue to perpetuate the growth delusion. Asian central banks, given their mission to maintain an efficient flow of funds to ensure that financial resources are allocated efficiently towards promoting economic growth and development, should begin to mandate that financial institutions allocate a percentage of their funds towards what is loosely termed “impact investing”. These funds must be made available in-country to support the region’s small and medium-sized enterprises (SMEs), especially those addressing

    Polity, Academia, Business, Civil Society