Developing inclusive business models in Africa: Creating sustainable competitive advantage through strategic entrepreneurship
Developing inclusive business models in Africa: Creating sustainable competitive advantage through strategic entrepreneurship
Developing inclusive business models in Africa
Content
- What is the project about? - Goal and benefits (what and why?) - Planning (how?) - Expectations and contribution - Stakeholders (by and for whom?) - Notes
Additional information: - Theoretical explanation - Methodology
Developing inclusive business models in Africa
About the project
Inclusive bussiness models - Inclusive business models create sustainable business while at
the same time fighting poverty - Low income segements of the society areinvolved in the supply
chain as customers, suppliers, distributors etc. - Critical especially in emerging and developing countries
- 4 billion people living in poverty “Base of Pyramid” - These people demand different products, and innovative
approaches are needed for accessing them
Developing inclusive business models in Africa
About the project
Strategic advantages of inclusive business models • Building new markets at the Bottom of the (income) Pyramid • Social impact that strengthens legitimacy (license to operate) • Creating sustainable supply chain • Driving socially and economically profitable innovations • Brand name building, differentiation from competitors • Improve employee motivation and loyalty
Developing inclusive business models in Africa
About the project
Examples of inclusive business models • Vodafone’s M-Pesa:- Mobile-based money transfer system
benefited millions of Kenyans (2012 estimates are 17 million) • Coca Cola’s Micro Distribution Centres (MDCs):- Coca Cola uses
these small scale local retailers to reach customers in otherwise inaccessible towns in East Africa.
• UNDP and the IFC (part of the World Bank) document hundreds of similar inclusive bussiness models that create i) sustainble bussiness and ii) benefit disadvantaged communities.
Developing inclusive business models in Africa
Goal and benefits(what and why?)
Goals
• Action research involving leading Dutch multinationals, local & international NGOs, knowledge institutes & African companies
• Identify potentials for inclusive bussiness in Africa
• Evaluate current performance with resepct to inclusiveness
• Excutive training on best ways of achieving inclusiveness in Africa
Benefits
• Knolwedge: - What inclusive models are appropriate in Africa?
• Evaluation and assessment:- How does our company perfrom with respect to employing inclusive models for improving sustainability?
• Networking:- With a diverse set of critical stakeholders in Africa and The Netherlands
• Capacity bulding:- Practical experience on inclusive business models, monitoring and evaluation, impact assessment
Developing inclusive business models in Africa
Planning (how?)
o This project brings together a selected group of Dutch frontrunners, NGOs and governments together with local business schools (= the Consortium);
o under the supervision of RSM and NABC on the Dutch Side and ESAMI on the African side;
o whose participation is vital through their input, surveys and stakeholder meetings.
The Consortium consists of a balanced variety of ○ both companies and NGOs; ○ from the Netherlands as well as East-Africa; ○ active in different sectors.
Developing inclusive business models in Africa
Planning (how?) – What do we offer?
Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Indicator development
Barriers check
Joint issue identification
Internal survey
Executive course; stakeholder meetings
Reporting and sharing
30 months
Developing inclusive business models in Africa
Planning (how?) – What do we expect?
30 months Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Feedback on indicators
Barriers: share experiences; best-practices
Joint issue identification
Participate in survey (benchmark)
Executive course; stakeholder meetings
Reporting and sharing
Developing inclusive business models in Africa
Planning (how?) – Approximate time contribution
30 months Step 1
Step 2
Step 3
Step 4
Step 5
Step 6
Feedback on indicators (3-8 hours)
Barriers: share experiences; best-practices (1 day)
Joint issue identification (1,5 day)
Participate in survey (benchmark): (0,5 day
interview + 30 min per survey)
Executive course; stakeholder meetings (1 day)
Reporting and sharing (2 days)
Developing inclusive business models in Africa
Planning (how?) – Practical steps
Step 1: Further indicator development of ‘inclusive business models’ - At business model level: funcitonal areas of management - Relates to dynamic transition model
Step 2: Validation of indicators with stakeholders - Organised by Business Schools with representative stakeholders - Inventorisation of barriers and triggers
Step 3: Further specification of specific issues - Per country: additional dimensions of inclusiveness - In stakeholder dialogues
Developing inclusive business models in Africa
Planning (how?) – Practical steps
Step 4: Checking barriers to implementation - Zero measurement: where is everyone in which phase of transition? - Objective study along indicators - Perception study with managers of all organisations - Analysis of critical success factors and barriers
Step 5: Interventions (action research) - Per country: stakeholder dialogues with relevant stakeholders on how to create partnering solutions
to the raised problems - Executive training and research: how to implement these solutions (seperare sessions with all
stakeholders) - Supported by researchers - Upgraded indicators and further specification Step 6: General conclusions - Presentation of upgraded inclusive business models that have proven to contribute to inclusive
development during central symposium in Arusha
Developing inclusive business models in Africa
Stakeholders (by and for whom?)
Project Steering Committee
• Rotterdam School of Management
• ESAMI Business School
• NABC
Dutch Consortium Partners
• Philips Medical Systems
• FMO
• Rabobank
• PUM
• Green Dream Company
• ISS
• Bam International
• Amref Flying Docters
• ICCO
• New World Campus
• SNV
• STC Group
• Cordaid
African Consortium Partners
• Bank of Kigali
• Bank of Africa
• Inyange Industries
• WISE
• Barefoot Power
• Roskar Travel
• Nile Breweries
• FAWE
Other stakeholders
• Ministry of Foreign Affairs
• Embassies of the Kingdom f the Netherlands
Developing inclusive business models in Africa Notes: - Lem, Marjolein, Rob van Tulder and Kim Geleynse (2013), Doing Business in Africa: a Strategic Guide for Entrepreneurs. Berenchot International BV, Prc/RSM, NABC, Rotterdam, the Netherlands. - Tulder, Rob van, et al. (2014), Managing the Transition to a Sustainable Enterprise: Lessons from frontrunner companies. Routledge, New York, USA. - Tulder, Rob van, et al. (2011), Inclusive business through partnerships, Special Contribution to Fourth High Level Forum on Aid Effectiveness, 29 November – 1 December 2011, Busan, Korea.
Developing inclusive business models in Africa Contact: Prc/RSM Jeroen Frietman [email protected] NABC Maryn Kleingeld [email protected] ESAMI Lucky Yona [email protected]