Inclusive business model drivers analysis
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The document discusses drivers of inclusive business models which refers to who leads or initiates the business model. The main drivers identified are government-driven, intermediary or NGO-driven, private buyer-driven, and farmer organization-driven. Participants at a world cafe event analyzed cases of buyer-driven, government-driven, and intermediary-driven models to identify the advantages and disadvantages of each in terms of inclusiveness and competitiveness.
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Inclusive business model drivers analysis
- 1. Inclusive business models www.fao.org/economic/esa/ © FAO, 2017 Inclusive business model drivers SESSION 5
- 2. Inclusive business models 2 IBM drivers Session 5 Drivers Refers to who leads or pushes the business model: 1. Government-driven 2. Intermediary (NGO)-driven 3. Private buyer-driven (agribusiness, agro-processor, individual investor) 4. Farmer organization-driven
- 3. Inclusive business models 3 IBM drivers Session 5 The world café Participants divided in 3 groups: Three tables to analyse 3 cases: Blue table: Buyer-driven – Host Green table: Government-driven – Host Red table: Intermediary-driven – Host Objective: Identify advantages and disadvantages of each driver in terms of inclusiveness and competitiveness
- 4. Inclusive business models 4 IBM drivers Session 5 Table 3 Case: Intermediary Table 1 Case: Buyer Table 2 Case: Government Move 1: Discuss the case
- 5. Inclusive business models 5 IBM drivers Session 5 Table 3 Case: Intermediary Table 1 Case: Buyer Table 2 Case: Government Move 2: Host recaps the first group’s discussion, which the second group builds on
- 6. Inclusive business models 6 IBM drivers Session 5 Table 3 Case: Intermediary Table 1 Case: Buyer Table 2 Case: Government Move 3: Host recaps previous discussions, which last group builds on
- 7. Inclusive business models 7 IBM drivers Session 5
- 8. Inclusive business models 8 IBM drivers Session 5 Government- driven Buyer-driven Facilitator-driven Advantages Disadvantages Inclusiveness
- 9. Inclusive business models 9 IBM drivers Session 5 Government- driven Buyer-driven Facilitator-driven Advantages Disadvantages Competitiveness
- 10. Inclusive business models 10 IBM drivers Session 5 Inclusiveness Competitiveness Government- driven Buyer- driven Facilitator- driven Farmer organization- driven Overall Business Model
Editor's Notes
- Smallholders that produce a surplus and take market risks beyond the farm gate or local spot markets are typically linked to the market by one, or a combination of four main drivers. Government-driven: includes public sector institutions such as schools, hospitals, food reserve authorities, food aid and school feeding programmes that procure food regularly. Led by local NGOs involved in the provision of technical assistance to improve smallholder market linkages. NGOs are normally funded and guided by an external actor, donor, government or a large technical institution such as the FAO. FAO’s IBM approach is mainly facilitator-driven. Buyer-driven models involve larger businesses organizing farmers into suppliers. These arrangements include contract farming,or outgrower schemes that often involve access to inputs, credit and technical advice based on the buyers’ needs. Farmer organizations and producers that organize themselves to work with a specific buyer.
- Participants are divided in groups one, two and three. The room is organized with three tables, each one with a host. Participants go to the assigned table. Group 1 – Table 1, Group 2 – Table 2, Group 3 – Table 3 In each table participants are given 5 minutes to read the case and 20 minutes to discuss the advantages and disadvantages.
- Groups move clockwise to next table: Group 1 – Table 2, Group 2- Table 3, Group 3 – Table 1 Participants are given 5 minutes to read the new case Host recaps main points from previous group to encourage building upon the previous discussion 20 mins
- Groups move clockwise to next table: Group 1 – Table 3, Group 2- Table 1, Group 3 – Table 2 Participants are given 5 minutes to read the new case Host recaps main points from previous group to encourage building upon the previous discussion 20 mins
- Reflect on the fact that there is no ‘ideal’ driver. Each driver has their own comparative advantage, hence no need to push for a particular driver. Optimal results can be achieved when the different actors collaborate to develop a business model that is both inclusive and competitive.