KAMPALA PRINCIPLE 5:MSMEs_SUBP 5.A

Sub-principle 5.A

Ensure that a private sector solution is the most appropriate way to reach those furthest behind

 

Why is it important?

 

Inclusive business models, as often applied by micro, small and medium-sized enterprises, are intended to address existing market failures and inefficiencies to successfully integrate the poor, either on the demand side as beneficiaries or on the supply side as distributors, suppliers of goods and services, or employees. 


Companies that engage in inclusive business models do so because they have understood that the “bottom of the pyramid” represents a large and underexplored market, where there is often little competition but high potential for innovation and an opportunity to secure a foothold in future markets. Many pursue innovative business models to achieve a beneficial social impact. These are the type of business models that bring an added value to development co-operation projects, as they are best equipped to benefit those furthest behind.

Self-reflection questions
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  • What added value can you bring to a partnership to benefit vulnerable citizens and communities?
  • What challenges are you facing in the business venture to reach vulnerable citizens and communities? 

Actions to consider
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  • Engage honestly and openly with other partners to discuss the risks and advantages your involvement in the project will have. 
  • Participate only in those development co-operation projects where you can ensure that development outcomes are sustainable and in line with your value added and envisioned business results.

Pitfalls to avoid
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DON’T…

  • Engage in development co-operation projects without a clear vision for your company’s added value and benefits.

COUNTRY-LEVEL EXAMPLES

Help us build our knowledge base! If you have any good examples, please share them with the GPEDC Joint Support Team via info@effectivecooperation.org

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