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Inclusive Business trends and options

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Slides from a presentation @Inclusive Agribusiness Southeast Asia Roundtable September 23-24 2015, Ho Chi Minh City, Vietnam

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Inclusive Business trends and options

  1. 1. Inclusive agribusiness: trends, options and questions Andy Hall, CSIRO, Australia
  2. 2. Research: what and who? • Regional policy overview and landscape. – Prof Paul Teng. SEARCA • 40 case studies of agri-companies looking at how and why companies are shifting towards inclusive business practice. • 7 regionally based research teams – IPSARD, Can Tor Uni, Bogor Uni, Business Innovation Center, PBSP, ASEI, AIT • Preliminary analysis: ordering the story
  3. 3. The big picture is a complicated picture • Multiple ways of implementing inclusive business • Multiple motivations • Reflects complex of commodity, country, company size and reach and company origins. • A number distinctive pathways to arrive at inclusive business • Lens to help think about practice, scaling and options for public, private and donor investment?
  4. 4. Inclusive agri-busness is happening • Innovation in business modles of companies large and small is creating opportunities for smallholders:
  5. 5. Why are companies doing it? • Shift in corporate policy towards sustainability and share value propositions. • Recognition of large markets of smallholders • Policy support: schemes, but often alignment of national development plans, goals and investments with company goals • Enabling technologies, particularly ICT, create new inclusive business opportunities • Opportunities that previously didn’t exist • Growing community of socially aware entrepreneurs
  6. 6. Who is involved? • Doing inclusive business – MNC’S – National Agribusiness companies – Pioneering SMEs – Pioneering new era social enterprises – Traditional social enterprises • Enabler organisations – NGO’s (traditional and new, policy advocacy, non- profit companies) CSR foundations, research organisations, global backbone organisations setting standards and practice.
  7. 7. How is inclusiveness business implemented: Many permutations – Social organisation of farmers coupled with technical assistance. With partner help – Partnering with farmers associations – Clustering of support services: public and private – Formal or social contracting – Products and allied advisory services targeted small holders, bundled with production purchases. – Services made accessible to smallholders: bundled with other implementation strategies; through clustering; – the creation of new inclusive service provider businesses.
  8. 8. Pathways to inclusive business: • Piloting inclusive schemes within existing business models. • Adapting existing business models to include inclusive elements • Transforming existing business models • SME’s pioneering entirely new inclusive businesses / models. • Pioneering new era social enterprises • Upgrading traditional social enterprises. • Traditional community embedded SMEs
  9. 9. Inclusive agribusiness at scale Pathways are different routes to achieving inclusive agri-business at scale
  10. 10. Inclusive agribusiness at scale Companies becoming more inclusive Players • Global • NABC • (SMEs) Pathways • Piloting • Adapting • Transforming
  11. 11. Inclusive agribusiness at scale Companies becoming more inclusive Players Pathways Scaling Possibilities • Good practice emerging • Narrow set of approaches/ commodities, wide reach
  12. 12. Inclusive agribusiness at scaleBecoming more business-like Players • Co-op plus • New era social businesses Pathways • Up-grading • Pioneering Companies becoming more inclusive
  13. 13. Inclusive agribusiness at scaleBecoming more business-like Players Pathways Scaling Possibilities • Good practice well understood • Large reach, but dairy and oil palm only?????? • Doesn’t work in all countries Companies becoming more inclusive
  14. 14. Inclusive agribusiness at scaleBecoming more business-like Companies becoming more inclusive Community embedded companies Players • Family SME? • ?? Pathways • Social shaping • Incidental inclusiveness • ??
  15. 15. Inclusive agribusiness at scaleBecoming more business-like Companies becoming more inclusive Community embedded companies Players Pathways Scaling possibilities • Incidental good practice exists, in many forms. • Large number, small reach • Unknown, but untapped??
  16. 16. Inclusive agribusiness at scaleBecoming more business-like Companies becoming more inclusive Community embedded companies Players • Pioneering SMEs • Social entrepreneurs • Entrepreneurial scientists Pathways • Incubation. • Pre- competitive development • Trailblazing SME • Market disruption Inclusive pioneers
  17. 17. Inclusive agribusiness at scaleBecoming more business-like Companies becoming more inclusive Community embedded companies Players Pathways Inclusive pioneers Scaling possibilities • Helping the continuous development of new practice. • Individually small reach, but collectively large, diversity of commodities, products and service.
  18. 18. Inclusive agribusiness at scaleBecoming more business-like Companies becoming more inclusive Community embedded companies Inclusive pioneers • Public, Private & Donor priorities • Alignment of private and policy goals • Stronger global back bone organisations • Knowledge gaps • Social and economic effectiveness
  19. 19. Inclusive agribusiness at scaleBecoming more business-like Companies becoming more inclusive Community embedded companies Inclusive pioneers Public private and donors priorities. Helping national international business collaboration ?????? Knowledge gaps Scope and economic potential
  20. 20. Inclusive agribusiness at scaleBecoming more business-like Companies becoming more inclusive Community embedded companies Inclusive pioneers Public, private and donor priorities ??? Improving business environment?? Science and technology support??? Knowledge gaps Establish potential???
  21. 21. Inclusive agribusiness at scaleBecoming more business-like Companies becoming more inclusive Community embedded companies Inclusive pioneers Public, private and donors priorities. Pioneer financing, innovation support services, science and technology, alliance with big value chain players Knowledge gaps Metrics of scope and potential

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