prme/gim webinar agenda 5 may 2011 presenters: sahba sobhani, program manager gim, undp: presenting...
TRANSCRIPT
PRME/GIM Webinar Agenda5 May 2011
Presenters: Sahba Sobhani, Program Manager GIM, UNDP: Presenting UNDP - GIM and its relevance/implications for the future work of the WG
Al Rosenbloom: presenting results and implications of the 3-round survey on priorities and modalities for the future work of the WG
Milenko Gudic: presenting objectives and format of the WG Workshop in Bled in July (also in the context of the deliverables for the Global Forum 2012 in Rio and the 2013 Summit in Bled)
The Growing Inclusive Markets (GIM) Initiative
A new perspective on private sector contribution to development
Inclusive business models / inclusive
markets
Developmentbenefits
Business benefits
Philanthropy
CSR / Social investment
Risk
Premise: Opportunities exist to build bridges between business and the poor
Inclusive business models create a win-win scenario between business and the poor
Benefits for business: generating profits, creating innovation, developing new markets, strengthening
supply chains
Benefits for the poor: meeting basic needs, increasing productivity and incomes, empowering
communities
Inclusive business models include the poor on the demand side as clients and customers, and on the supply side as employees, producers and business owners in the value chain
Sectors: energy, water & sanitation, agriculture, health, financial services, ICT, handicraft, education,
housing, tourism
Types of organizations: MNCs, large companies (public/private), MSMEs, cooperatives, NGOs,
social business
The poor harbour a potential for consumption, production, innovation and entrepreneurial activity that is largely untapped
2.6 billion people live on less than US$ 2 per day; 1 billion lack access to clean water; 2.6 billion lack adequate sanitation; 1.6 billion lack access to electricity; 5.4 billion have no access to internet
The poor harbour a potential for consumption, production, innovation and entrepreneurial activity that is largely untapped
2.6 billion people live on less than US$ 2 per day Billions of people lack access to essential goods and services:• No clean water: 1 billion• No adequate sanitation:
2.6 billion• No electricity: 1.6 billion• No internet: 5.4 billion
Poverty is best understood as a lack of opportunity to lead a life one values.
• Does the business improve poor people's access to basic goods and services such as education, health, housing, water and sanitation, etc.
• Does the business reach excluded and disadvantaged populations (e.g., women, youth, disabled, ethnic minorities)?
Human Development Impact
Commercial Viability
• Is the business profitable? (In case of a start-up: is there a business plan to achieve profitability over time?)
• Does the business contribute to environmental sustainability (e.g. by saving resources, reducing carbon emissions, conserving biodiversity, maintaining ecosystem services)? (Should at least have no major negative environmental impacts)
Environmental Impact
Potential for Scale and Replication
•Has the business already achieved scale (either by expanding regionally, or reaching deeper into poor populations, or extending its activities)? If not, does the business have the potential to grow?
•Has the business model been replicated by others in the same region/sector?
Inclusive Business Models
Inclusive business models include the poor on the demand side as clients and customers, and on the supply side as
employees, producers and business owners
•Does the business employ new solutions? Is it based on an innovative product, process or business model? Is it based on new ideas that can excite and inspire others?
Innovation
Including the Poor Creates Opportunities for Business
• Smart Communications was the most profitable of the 5,000 largest corporations in the Philippi-nes in 2003, with a net income of about $288 m.
• Fingerprint-enabled ATMs developed for illiterate banking customers in India are being introduced in the US.
• The 4 billion people who live on less than $8 a day have a combined purchasing power of $5 trillion.
• Through training employees, Denmor Garment Manufacturers could a occupy a niche in high-quality, highly flexible production chains.
• SABMiller sources sorghum for its Eagle Lager from about 8,000 small-scale farmers in Uganda and 2,500 in Zambia,
Generating profits
EvidenceBusiness benefits
Creating innovation
Developing new markets
Expanding the labour pool
Strengthening supply chains
It also Creates Opportunites for the Poor
• RiteMed reached more than 20 million low-income clients in 2006 with 35 generic drugs, selling them at prices 20%–75% lower than those of name brands.
• Amanco sells small-scale lemon farmers drip irrigation systems that can raise annual yields from 9 tons per hectareto 25.
• Huatai provides alternative sources of income for local tree farmers and significantly increases the incomes of about 6,000 rural households.
• Access to loans, such as those provided by K-REP Bank, are not only sources of investment but also of self-confidence and independence.
Meeting basic needs
EvidenceBenefits for the Poor
Increasing productivity
Increasing incomes
Empowering communities
Core Business Contributions to the MDGs
• In Colombia, Juan Valdez is offering higher, more stable incomes to over 500,000 small-scale coffee growers.
• Tsinghua Tongfang (THTF) markets computers to China’s rural population that include distance education software, both for primary and middle school education and for minority language education.
• In Russia over 80% of Forus Bank’s clients are women, most of them in retail businesses; in 2006 the bank helped create 4,250 direct and 19,950 indirect jobs.In Mali, where in 2000 more than 22% of infants died before their first birthday, Pésinet provides an early warning method for monitoring the health conditions of children under age five, greatly reducing the infant mortality rate.
• In Cabo Delgado, Mozambique, the liquefied petroleum gas provided by VidaGas improves the sterility of medical instruments used to deliver babies, thereby improving maternal health.
• In Tanzania, A to Z Textile Mills provides affordable, long-lasting insecticide-treated bed nets that prevent mosquitoes from spreading malaria, reducing deaths by 50%.
• In 57 small towns across Uganda, the Association of Private Water Operators provides over 490,000 people with water and sewage services.
• In the Philippines, Smart is reducing the ‘digital divide’ by providing low-cost, prepaid mobile phone airtime cards and is easing financial transactions to serve 24.2 million people.
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Principles | Products | Objectives• - Conceived in 2006 as platform for collaboration focused on research & advocacy• - Advisory Board gathering over 25 key stakeholders including business associations,
academic institutions and development agencies
Principles
• Core business emphasis
• Developing world focus
• Human development framework, guided by the MDGs
• Local agenda• Partnership and
multistakeholder approach
Products
• Reports (global, regional and national)
• Case studies (120 published + 1,000 examples)
• Knowledge network: 45 Southern academic institutions, Centers of Excellence, KM platform
• Tools: Strategy Matrix, Heat Maps, Actor Framework, Training for companies and intermediaries
Objectives
• Deepen the understanding of how inclusive business models and inclusive markets can contribute to sustainable human development
• Enable the creation of more inclusive business models by informing individual, collective and policy action to improve market environments
Network of 45 academic institutions in >30 countries
- Lagos Business School, Pan-African University (Nigeria)- Obafemi Awolowo University (Nigeria)- Institut Africain de Management (Senegal)- Institute of Statistical Social and Economic Research (Ghana)- Jomo Kenyatta University of Agriculture & Technology (Kenya)- Makerere University, Faculty of Economics and Management (Uganda)- University of Pretoria, Gordon Institute of Business Science (South
Africa)- Witwaterstrand University, Graduate School of Business
Administration (South Africa)- Reciprocity (South Africa)
- Bangalore Institute of Management (India)- Harvard Business School's Indian Research Center (India)- Shanghai University (China)- Alternative Energy Institute, WTAMU (China)- Peterson Institute of International Economics / Center for World Trade
Organization Studies (China)- New Ventures (Indonesia)- Hasanuddin University (Indonesia)- Jagannath University (Bangladesh)- Open University, Ho Chi Minh City (Vietnam)- European Chamber of Commerce in Vietnam- Institute of Technology (Fiji)
- School of Business Administration, Al Akhawayn University, Ifrane (Morocco)
- American University in Cairo (Egypt)- Synovate (Egypt)
- International University of Kyrgyzstan, Bishkek (Kyrgyz Republic)
- Marmara University, Department of Economics (Turkey)- Economy and Values Research Center (Armenia)- Zdes i Seichas (Belarus)- International Investment Center (Russia)- Department of Organization & Management, Faculty of
Economics & Business (Croatia)- Kozminski Academy of Entrepreneurship and Management
(Poland)- Fundação Dom Cabral (Brazil)- Universidad del Pacifico (Peru)- Universidad de los Andes (Colombia)- Escuela de Graduados en Administración y Dirección de
Empresas, Tecnológico de Monterrey (Mexico)- Tecnológico de Monterrey, Social Enterprise Knowledge
Network (Mexico)- Arthur Lock Graduate School of Business (Trinidad & Tobago)- Richard Ivey School of Business (Canada)- HEC Montréal (Canada)- Nottingham University Business School (UK)- Yale University (US)- Ecole Supérieure des Sciences Economiques et Commerciales,
Institute for Research and Negotiation in Europe (France)- Université Québec à Chicoutimi (Canada)- University of Tokyo (Japan)- Hosei University (Japan)
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Empirical research approach: 120 case studies developed (1/2)
28%
50%
11%11%Entrepreneur
Employee
Producer
Consumer
Type of inclusion
26%
23%40%
7%
Type of company
4%
MSME
MNC
Large domestic (incl. public)
Non-profit
Cooperative
28%
25%17%
19%
12%
Region
MENA
Sub-Saharan Africa
Asia & Pacific
Eastern Europe & CIS
Latin America & Caribbean
Empirical research approach: 120 case studies developed (2/2)
0
5
10
15
20
25
30
35
40
# of cases
GIM Case Study Database
Description
Results
Environmental: non-polluting and renewable source of energy
Partners
Suppliers: Tata BP, Shakti Electronics, Anand Electronics
ClassificationInclusion: Consumer, Entrepreneur
Sector: Energy
Type: MSME
Case study example: SELCO (India)
Investors: IFC, USAID, E+Co, Lemelson, Good Energies Foundation
Economic: 25 service centers, average sale price of USD 450, broke even after 7 years, now worth USD 3.4 million, won national and international awards
Social: provision of solar lighting to >110,000 rural homes and 4,000 institutions (orphanages, clinics, schools), creation of jobs (170) and income opportunities for the rural poor (entrepreneurs renting SELCO lamps to street vendors daily), savings in energy costs, improved children’s education and health.
Constraints:• Negative perception about solar technology• Different clients’ needs and payment capacities
Opportunity: most of India’s rural population does not have access to electricity; 400 million depend on highly polluting and inefficient sources of energy, thus hindering productivity
Business model: make solar lighting technology accessible to the rural poor (Karnataka) through credit
Loans: rural banks, credit cooperatives, MFIs
Implementation: SEWA
Solutions:• Demonstration effects: maintained solar street lights to demonstrate viability of the technology• Customized products (e.g. head lamps for midwives and flower pickers) and payback options
“We set up SELCO to bust 3 myths: the poor cannot afford technology, the poor cannot maintain technology and it is not possible to run a commercial venture that fulfills a social objective.” - Dr. Harish Hande, Founder
Market information
Regulatory environment
Physical infrastructure
Knowledge & skills
Access to financial products and services
Adapt products and processes
Invest in removing constraints
Leverage the strengths of the poor
Combine resources and capabilities with others
Engage in policy dialogue with government
StrategiesCo
nstr
aint
s
Strategy Matrix – A tool to understand constraints and possible strategies
Market Heat Maps – A tool to improve market information
Percentage of households in Guatemalaliving on less than $2 a day with access
to credit by source
Actor Framework – Who supportsinclusive business models and how?
Inclusive Business Models
Policymaking institutions
Research & Advocacy
institutions
Finance institutions
Institutions with complementary
capabilities
Policies, infrastructure
Awareness raising,best practices
Incentives, PPP
Tools, knowledge hubs
Patient capital, grants
Equity, debt financing
Expertise
Networks
Actor networks in inclusive business models
MNC
Large domestic company
SME
NPO
Policymaking institutions
Research and advocacy
institutions
Finance institutions
Institutions with complementary
capabilities
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Global, Regional and National Reports
“Creating Value for All: Strategies for Doing Business
with the Poor” (2008)
“The MDGs: Everyone’s Business” (2010)
“Business Solutions to Poverty – How inclusive business models create
opportunities for all in Emerging Europe and Central Asia” (2011)
“Estrategias Empresariales para la Superación de la Pobreza y la Exclusión en Colombia” (2010)
Thank your for your attention
For more information:www.growinginclusivemarkets.org
PRME Working Group
Poverty as a Challenge to Management Education
PRME WG Webinar5 May 2011
Summary of the Working Group Delphi Process
Delphi Process
A practical management tool That helps group members that are in
dispersed locations reach consensus
Delphi Process Recap
Round 1 To develop a list of activities and ideas from
WG members that is as complete as possible. Began with 14 topic areas 32 topics Began with 20 “work products” 32 “ work
products”
Delphi Process Recap
Round 2 To vote for topics and work products of
most interest to WG members Resulted in both lists being divided into topics
of high interest (largest number of votes) and topics of interest (fewer number of votes)
WG commitment: To retain all WG member interests collaboration + partnerships
Delphi Process Recap
Round 3 To determine strength of interest in the top
10 WG topics and top 9 work products WG members were asked to allocate 20
points across each of the two groups Responses: 21
Topics of Interest
Topic Points WG Member Interest
1. Collaborating on poverty alleviation projects in developing countries and giving students the opportunities to get involved in those projects.
93 12 members
2. Case writing and case research on poverty
60 11 members
3. Poverty and its relationship to sustainability activities/efforts
44 7 members
4. Concrete (consulting) projects done by the students for individuals, small companies, municipalities, NGOs, or any institution in developing and emerging countries related to poverty reduction
40 4 members
Topics of Interest
Topic Points WG Member Interest
5. Poverty and its relationship to business ethics/corporate social responsibility
36 7 members
6. Faculty research 30 4 members
7. Cross discipline issues related to poverty
29 5 members
8. Corporate leadership issues as they relate to poverty
22 4 members
Topics of Interest
Topic Points WG Member Interest
9. Poverty and its relationship to economic development activities
20 3 members
10. Issues related to the curriculum (redesigning/revising/innovating)
17 4 members
Work Products/WG OutcomesTopic Points WG Member Interest
1. An e-education system or program that helps different disciplines teach or studying about poverty
89 10 members
2. Book(s) 71 9 members
3. Conference(s) 41 8 members
4. Partnerships between ‘rich’ and ‘poorer’ universities for mutual learning
34 6 members
5. Instructional material(s) 23 4 members
Work Products/WG OutcomesTopic Points WG Member Interest
6. Executive education guidelines 23 5 members
7. Webinars 21 4 members
8. Case clearinghouse 17 5 members
9. Corporate training guidelines 13 3 members
Brief Recap: Where We Are Now Worked through a three-stage process
that first involved enlarging the domains of interest and then consolidating them Identified common areas of interest Know who is interested in specific topics Sense of the various tangible products WG
members are interested in
What We Might Want to Discuss Next
The possibility of topic champions/topic coordinators
Organizational structure “Deliverables” in terms of immediate, mid-
range and long term time frames How to integrate the long list of remaining
topics of interest into existing areas of interest How the Growing Inclusive Markets (GIM)
framework influences topics and work products
BLED 7-8 July, 2011
PRME Working GroupPoverty as a Challenge to Management Education
Current Status and Future Activities
PRME WG Webinar5 May 2011
Content
• General frame of work• Current status• Workshop in Bled• Time horizon• Deliverables for Global Forum and
Summit
Original Plan of Activities
• Inviting faculty to join the group – Winter 2010/Spring 2011
• Creating database (profiles, interests) – Spring 2011
• Communication platform /Spring 2011• WG meeting in Bled – Spring 2011• Thematic workshop – winter 2011• International conference 2012
Current Status
• Working Group established– 70 members– 30 countries
• Database: CVs collected (partially)• 3-round Delphi survey
– Identification of interests– First prioritization– Concentration of interest areas and tangible
products
Communication Platform
• LinkedIn Group established– 35 members– First information being shared
• Electronic communication • PRME supported Webinar, 5 May• Future development
– To be discussed in the Workshop in Bled
Workshop in Bled
• WG structure– Geographic– Thematic– Matrix
• Future work– Thematic– Deliverables– Time horizon– Possible funding
Time Horizon
• PRME Global Forum 2012– Rio de Janeiro, May 2012– Fighting poverty through management education in
the context of dealing with social aspects of sustainable development
• Thematic Workshop 2012– Associated to Global Forum
• Rio de janeiro, or Buenos Aires
• PRME Summit 2013– Bled, May 2013
Deliverables for Global Forum in Rio
• Social aspects of sustainable development - Fighting poverty through management education: challenges, opportunities, solutions– Management education and constraints/strategy
matrix– Management education solutions
• PRME Working Group– Aspirations– Activities– Needs
Deliverables for Global Forum in Rio
• Building blocks– CEEMAN Survey– PRME/CEEMAN Survey– GIM Report– WG projects and activities
Deliverables for Global Forum in Rio
• Work methods– Global survey– WG thematic workshop– WG activities and projects
Welcome to Bled!
• PRME WG Workshop– 7-8 July 2011
• Growing together by learning together about and for a better world