"Market Systems Development (MSD) is an approach to poverty reduction that aims to create long-lasting and large-scale change by stimulating more inclusive growth. To achieve a systemic change vision, market systems programmes often partner with the private sector to introduce new or improved business practices, products and services. Understanding the mechanics of these business models is at the heart of programme success. This paper presents a framework for assessing the efficacy of business models. To help future practice be grounded in reality, we have included detailed business model cases studies from market systems programmes in Afghanistan, Zambia, Kosovo and Nigeria. The paper ends by extracting five key lessons for implementers to improve the way in which they engage with the private sector in building 'win-win' models."
"Many Climate Smart Agricultural (CSA) technologies fail to achieve their full potential impact due to low levels of adoption by smallholder farmers and difficulties in scaling CSA. This paper presents how small and medium-sized enterprises (SMEs) can act as change agents for the uptake of CSA technologies where their business models may be seen as adoption and scaling mechanisms. Drawing upon our fieldwork in Punjab (India) during which over 100 respondents have been interviewed, critical issues and enabling factors for the business model of two types of SMEs, i.e. farmer cooperatives and individual service providers of climate smart technologies have been identified. Enabling factors supporting adoption are driven by scientific and practical evidence of CSA technologies, good partnership between SMEs and research institutes, good customer relationships and effective channels through farmers' field trials. Critical issues consist of distortive government subsidies on energy and the lack of market intelligence affecting the profitability of the business model. Scaling is enhanced through market intelligence and a favouring regulatory landscape. However, difficult socio-economic circumstances and distortive government subsidies limit the role of SMEs business model as mechanism for scaling."
"Management has a large effect on the productivity of medium and large firms. But does management matter in micro and small firms, where the majority of the labor force in developing countries works? We develop 26 questions that measure business practices in marketing, stock-keeping, record-keeping, and financial planning. These questions have been administered in surveys in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria, and Sri Lanka. We show that variation in business practices explains as much of the variation in outcomes-sales, profits, and labor productivity and total factor productivity-in microenterprises as in larger enterprises."
"Business support interventions in low and middle-income countries (LMICs) direct a large amount of resources to SMEs, with the assumption that institutional constraints impede small and medium-sized enterprises (SMEs) from generating profits and employment at the firm level, which in turn is thought to impede economic growth and poverty reduction. Yet despite this abundance of resources, very little is known about the impact of such interventions. To address this gap, this systematic review analyses evaluations of SME support services in LMICs to help inform policy debates pertaining to SMEs and business support services. This review examines the available evidence on the effects of SME support services in LMICs on firm-level performance indicators (such as revenues, profits, and productivity), employment generation, and labour productivity."
"The paper seeks to inform the reader with: An insider’s perspective of on-the-ground challenges faced in balancing the right mix of investments impact on missions of social enterprises [and] Recommendations that could help guide the growing social investment arena on how to support the development of sustainable social enterprises."
"Inadequate sanitation negatively affects the lives of billions of people in the base of the pyramid (BoP) in the developing world, and has a particularly substantial impact on the well-being of millions of young children. Given the magnitude of the challenge and the limitations of existing approaches, enterprise-led approaches to providing public goods are generating growing interest. Emphasizing convergent innovation, enterprises targeting the BoP are presented as potentially sustainable and scalable interventions that generate positive poverty-alleviation effects. Yet our understanding of who is affected, and how, remains limited. To begin to address this gap, we apply a multidimensional framework to an urban-based, sanitation-oriented BoP enterprise, focusing on its poverty-alleviation effects on young children. Our analysis indicates that the enterprise's effects include changes in capability, economic, and relationship well-being and that these changes can be positive or negative. We also find that the impact varies depending on the role of the stakeholder in the business model and the age of the child. Our results contribute to a better understanding of how to assess the effectiveness of a sanitation intervention and how to evaluate the poverty-alleviation implications of an enterprise-led approach."
"The B Impact Assessment is a free, confidential online tool that has been used by over 50,000 companies to measure and manage their impact. The Assessment measures sustainability across five Impact Areas: Governance, Workers, Community, Customers and Environment, and is the standard used by Certified B Corporations and GIIRS Rated companies."
"SMEs are positioning themselves as a strategic branch of banking operations in the region, while banks are increasingly pushing for more active policies when it comes to the financing of SMEs. This is one of the highlighted conclusions from a 2011 joint survey conducted by the Inter-American Development Bank Group's entities dealing with the private sector: the Multilateral Investment Fund (FOMIN), the beyond Banking program of the department of Corporate and Structured Financing (SCF), and the Inter-American Investment Corporation, along with the Latin American Banking Federation (FELABAN).
This report introduces the general results obtained during the fourth survey encompassing the views and opinions of directors, managers and deputies of the SME division of 109 banks scattered across 22 countries in Latin America and the Caribbean. It also includes an itemized analysis of the answers divided by the banks size and location, as well as their interrelations with other trends in that sector."
"Theories of market failures and targeting motivate the promotion of entrepreneurship training programs and generate testable predictions regarding heterogeneous treatment effects from such programs. Using a large randomized evaluation in the United States, we find no strong or lasting effects on those most likely to face credit or human capital constraints, or labor market discrimination. We do find a short-run effect on business ownership for those unemployed at baseline, but this dissipates at longer horizons. Treatment effects on the full sample are also short-term and limited in scope: we do not find effects on business sales, earnings, or employees."
"While the world has made huge economic gains over the past 50 years, this progress has been highly uneven. This is particularly acute in the agriculture sector, with many of the 500 million smallholder farmers around the world living on meager incomes and facing high levels of economic insecurity.
Despite some recent innovations and advances in including smallholders as market players, there have been few cases where truly widespread, market-level, transformative change towards inclusion has been achieved.
In this report, we explore the role of different kinds of capital in bending the arc of agricultural market development towards inclusive growth. We pay particular attention to how impact-focused players deploying capital that is flexible in terms of risk-return expectations can best deploy it in order to catalyze large-scale transformations towards inclusion."