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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 frietman@rsm.nl NABC Maryn Kleingeld maryn.kleingeld@nabc.nl ESAMI Lucky Yona yona_lucky@yahoo.com