The world over, large companies traditionally buy from established suppliers and service providers, and target middle- and high-income consumers. As a result, poor people find many essential goods and services too expensive, and as producers, struggle to sell enough to make a living.
SNV helps to break this cycle by introducing businesses to low income communities and creating mutually-beneficial links. It does this through Inclusive Business, an entrepreneurial initiative which contributes towards poverty alleviation by including low-income communities within the value chain of a company, while not losing sight of the ultimate goal of business, namely generating profit.
The concept was developed through an alliance between SNV and the World Business Council for Sustainable Development (WBCSD) to create win-win situations for both company and low income communities. This strategic association facilitates the development of specific Inclusive Business opportunities, which are not only attractive investment options, but also benefit low-income communities.
SNV advisors work both with large companies and small producers to help maximise opportunities for both. With our advice and support, companies gain access to a wider pool of quality producers, while low-income communities have an opportunity to become employees, suppliers and small investors, as well as consumers. SNV has extensive experience of connecting leading companies with the low-income sector and developing their business strategies, with 70 thriving Inclusive Businesses in Latin America testament to the model’s success.
As the market leader in Inclusive Business development, SNV firmly believes that this business strategy creates growth in new markets, lowers supply-chain related transaction costs, manages stakeholder and shareholder risks, and leverages blended financial mechanisms.
More about Inclusive Business and the SNV-WBCSD Alliance: www.inclusivebusiness.org
More about SNV in Latin America, its clients and partners: www.snv-la.org