More than 4.5 billion people worldwide living at the Base of the Economic Pyramid (BOP) and have a purchasing power parity of 8 USD a day or less. Because the BoP population is largely excluded from formal markets, there is a strong demand for innovative inclusive businesses that incorporate members from the BoP population into the company’s core processes. The challenge is to help to break this cycle and create mutually beneficial outcomes. SNV’s Inclusive Business bridges the gap between established companies and low income groups to create commercially viable business opportunities that incorporate low income markets into value chains as producers, employees and as customers.
An Inclusive Business is a business initiative that incorporates members from the low-income population into the company’s core processes, generating a win-win relationship. Members from the low-income population typically fill one or more of several roles:
The Base of the Pyramid refers to people with a purchasing power of USD 8 a day or less. Because they are largely excluded from formal markets, there is a strong demand for innovative products, services and technologies that provide access to basic needs.
SNV has extensive experience in creating Inclusive Business models. Globally, we have developed more than 200 initiatives that create shared value for both business and low-income markets. We not only run programmes that focus exclusively on Inclusive Business initiatives but we also integrate our approach into a variety of other projects.
To date, SNV’s Inclusive Business in Vietnam has successfully supported over 50 companies with knowledge, expertise and services to initiate and scale up their business activities in low-income markets. The role of SNV around these cases has been diverse, including: fund raising/management, project management, and providing specialized services. All services provided by SNV’s Inclusive Business are tailor-made for each business to address their different needs.
SNV drafts and incubates Inclusive Business models. We implement concepts and obtain the first business results. We broker the required financial instruments to sustain and scale the business model. SNV supports participating businesses to implement our models allowing them to integrate new smallholder suppliers and access new markets. We train smallholders to improve quality, quantity and reliability of harvests to enable them to supply to businesses. We cooperate with authorities to create pro-poor policies, both on the supplier and retail side. We stimulate the formation of public private partnerships to ensure the interests of all actors are represented.