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Developing inclusive business models in Africa: Creating sustainable competitive advantage through strategic entrepreneurship

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Page 1: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

Developing inclusive business models in Africa: Creating sustainable competitive advantage through strategic entrepreneurship

Page 2: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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

Page 3: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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

Page 4: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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

Page 5: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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.

Page 6: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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

Page 7: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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.

Page 8: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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

Page 9: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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

Page 10: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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)

Page 11: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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

Page 12: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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

Page 13: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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

Page 14: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

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.

Page 15: Developing inclusive business models in Africa inclusive business... · Developing inclusive business models in Africa About the project Inclusive bussiness models - Inclusive business

Developing inclusive business models in Africa Contact: Prc/RSM Jeroen Frietman [email protected] NABC Maryn Kleingeld [email protected] ESAMI Lucky Yona [email protected]