Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices Bonn and Eschborn, Germany Sector Project Sustainable Economic Policy and Private Sector Development & Global Project Responsible and Inclusive Business Hub Friedrich-Ebert-Allee 36-40 Dag-Hammarskjöld-Weg 1-5 53113 Bonn, Germany 65726 Eschborn, Germany Tel. +49 228 44 60–0 Tel. +49 61 96 79–0 Fax +49 228 44 60–17 66 Fax +49 61 96 79–11 15 info@giz.de info@giz.de www.giz.de www.giz.de As at October 2017 Printed by Design and layout Iris Christmann, Wiesbaden (cmuk) Green and Inclusive Business Toolbox Photo credits Baladini/Johnson, Brendon (Page 66); CORPONOR (Page 92); GIZ (Page 8, 64); GIZ/Albrecht, Martin (Page 98); GIZ/Al Maktri, Wagdi (Page 100); GIZ/Ahmed, Shumon (Page 104); GIZ/Asche, Sabrina (Page 102, 105); GIZ/Carolin Weinkopf (Page 65); GIZ/Diaz, Jose (Page 52, 78); GIZ/Fayessa, Tadesse (Page 28); GIZ/Godau, Martin (Page 61); GIZ/Imo, Thomas (Page 18, 19); GIZ/Jäschke, Thomas (Page 37, 38, 39); GIZ/Kirchgessner, Markus (Page 69, 94); GIZ/Kirstein, Lucie (Page 7, 13, 15, 28, 31, 60, 95); GIZ/König, Andreas (Page 72); GIZ/Kopp, Florian (Page 91); GIZ/ Mahdayan, Wiwik (Page 45); GIZ/Nugroho, Sony (Page 47, 48); GIZ/Ostermeier, Dirk (Page 17, 19, 86, 99); GIZ/Radike, Britta (Page 25); GIZ/Salem, Schirin (Page 68); GIZ/SREGIP (Page 46); GIZ/Strategic Alliance – Corporate Engagement in Start-up and Social Enterprise Incubation in India (Page 55, 56, 57); GIZ/Walsch, Alan (Page 30); GIZ/Wohlgemuth, Janina (Page 80, 83); GIZ/Yehia, Yasmin (Page 68); Gutierrez Maguiño, Renzo (Page 75, 76, 77); ICAFE (Page 50, 52); Open Africa (Page 41, 42, 44); RegencyFoundationNetworx (Page 71, 72, 73); Solarkiosk AG (Page 5, 9); Yomken Page (22, 24) Composings (Cover and Content): Pictograms, Fotolia Green and Inclusive GIZ is responsible for the content of this publication. On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) Division Cooperation with the Private Sector; Sustainable Economic Policy Business Toolbox Adresses of the BMZ offices BMZ Bonn BMZ Berlin | im Europahaus Promoting Green and Inclusive Business Models Dahlmannstraße 4 Stresemannstraße 94 in Development Cooperation Programmes 53113 Bonn, Germany 10963 Berlin, Germany Tel. +49 228 99 535 – 0 Tel. +49 30 18 535 – 0 Fax +49 228 99 535 – 3500 Fax +49 30 18 535 – 2501 Green and Inclusive Business Toolbox Promoting Green and Inclusive Business Models in Development Cooperation Programmes Table of Contents | Green and Inclusive Business Toolbox | 3 Table of Contents INTRODUCTION 5 INFORMATION: Mapping the Green and Inclusive Business Ecosystem 13 Global Entrepreneurship Monitor 17 Digital Crowd-solving Platform 22 PARTNERS & NETWORKS: Inclusive Business Sector Dialogue: Peer-to-peer Networking for Stakeholders of one Sector 27 Competition for Inclusive Business 31 Development Partnerships with the Private Sector for Green and Inclusive Business 36 MARKETS: Digital Marketing Platform for Inclusive Business 41 Linking MSMEs to Supply Chains 45 Opening New Markets with Low-carbon Products 49 CAPACITY DEVELOPMENT: Cross-Border Start-up Programme 54 Incubator Manager Training 59 Scaling programme for Green and Inclusive Businesses 62 Business Skills Training For BoP-Entrepreneurs 66 Remote Strategic Advisory Services 70 Navigator for Green Incubators 74 Small and Medium-sized Enterprise Adaptation to Climate Change 78 FINANCE: Entrepreneurs’ Guide to Impact Investing 85 POLICY: Local Approach to Supporting Green Businesses 89 Strategic Study on Setting the Framework for Inclusive Business 93 Value Chain Selection – Integrating Economic, Environmental, Social and Institutional Criteria 96 Promotion of Disability-inclusive Workplaces 101 REFERENCES 106 4 | Green and Inclusive Business Toolbox | List of Abbreviations and Acronyms List of Abbreviations and Acronyms AHK Außenhandelskammer AHN Affordable Housing Network APS Adult Population Survey BGMEA Bangladesh Garment Manufacturer and Exporters’ Association BMZ German Federal Ministry for Economic Cooperation and Development BoP Base of the Pyramid CAD Centre of Partnerships for Development CDD Centre for Disability in Development CIIE Centre for Innovation, Incubation and Entrepreneurship COPLAN Cooperation Platform Latin America North CRP Centre for the Rehabilitation of the Paralysed CSB Caucasus School of Business DPO Disabled Peoples’ Organisation DPP Development Partnerships with the Private Sector EUREF Europäisches Energieforum FMCG Fast Moving Consumer Goods GEM Global Entrepreneurship Monitor GHG Greenhouse Gas GIB Green and Inclusive Business Models IB Inclusive Business IBAN Inclusive Business Action Network ICT Information and Communication Technology IFC International Finance Corporation IIMA Indian Institute of Management, Ahmedabad IJC Inclusive Job Center ILO International Labour Organisation ITC International Trade Centre MADS Ministerio de Ambiente y Desarrollo Sostenible MENA Middle East and North Africa MoU Memorandum of Understanding MSME Micro, Small and Medium-sized Enterprises NAMA Nationally Appropriate Mitigation Action NES National Expert Survey NGO Non-governmental Organisation NSP NAMA Support Project PRODES Promoción del Desarrollo Económico Sostenible ProECON Programme for Sustainable Economic Development in Mozambique ProGED Philippine–German Promotion of Green Economic Development PSACC Private Sector to Adapt to Climate Change PSD Private Sector Development PSES Promotion of Social and Environmental Standards in the Industry RGBP Regional Green Business Programme RIBH Responsible and Inclusive Business Hubs RMG Ready-made Garment SADC Southern African Development Community SMEs Small and Medium-sized Enterprises SREGIP Sustainable Regional Economic Growth and Investment Programme USIL University San Ignacio de Loyola Introduction | Green and Inclusive Business Toolbox | 5 Introduction The international community is focusing ever-greater at- • the supply side as distributors, suppliers of goods and tention on green and inclusive business (GIB) models. But, services, or employees by creating new livelihood and while their relevance for solving social and environmental income-generation opportunities for the poor, who solutions is increasingly accepted, the question of how to typically rely on subsistence or informal livelihoods, and support GIB models in development cooperation pro- by opening up access to markets in sectors like ener- grammes is less clear. This Green and Inclusive Business gy, health and agriculture. This is carried out through Toolbox attempts to provide some options to tackle this targeted measures designed to integrate the BoP into issue. the company’s operations – for example, through the provision of training or access to finance. In turn, this Developed by two sector projects, Innovative Approach- can boost household incomes and prosperity, as well as es for Private Sector Development and Private Sector provide companies with a commercial advantage over Cooperation/Responsible Business for Development, the long term.3, 4 on behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ), and updated in IB models are not expected to substitute basic goods and collaboration with the Responsible and Inclusive Business services provided by the state. Instead, they complement Hubs (RIBHs), the Green and Inclusive Business Toolbox public provisions. As market-based solutions, IB models aims to provide planning officers, project leaders and staff aim to be financially self-sustaining. However, in addition involved in private sector development and other sector to private limited companies, organisations applying these projects with a set of tried-and-tested tools that can be models may also be legally registered as non-governmental used to integrate a GIB perspective and GIB models into organisations (NGOs). Moreover, it is not just small and existing or future German development cooperation growing businesses that are exploring this market oppor- programmes. tunity. In the face of economic slowdown in the traditional markets, many established companies have started to ex- plore the potential of the BoP market in emerging markets What are green and inclusive business models? as a growth strategy. What are inclusive business models? Starting from the premise that there are four billion poor people living at the economic base of the pyramid (BoP), companies operating inclusive business (IB) models try to tap into this underserved global consumer market that is estimated to be worth USD 5 trillion globally1. To do this, companies seek innovative ways to integrate the poor on: • the demand side as customers by providing the BoP with access to essential goods and services (e.g. health care, energy or finance), fulfilling unmet needs, and seeking to address existing market failures and ineffi- ciencies resulting from the so-called ‘poverty penalty’ where the poor, who mainly rely on informal markets, often end up paying higher prices for lower quality goods and services than the rich due to the presence of, for example, local monopolies2; 1 IFC and WRI, 2007. 2 IFC and WRI, 2007. 3 GIZ, 2013. 4 IFC and WRI, 2007. 6 | Green and Inclusive Business Toolbox | Introduction Introduction What are green business models? Examples of GIB models Inclusive businesses should promote sustainable devel- opment in all its dimensions – economic, social and envi- GIB models can be found in diverse sectors and may be ronmental. Green business (GB) models explicitly focus initiated by both large and small companies from devel- their efforts on solving environmental5 challenges by oping, emerging and developed economies. The following reducing negative environmental impacts, increasing re- companies are examples of successful GIB models in silience against environmental impacts, or by providing different sectors and regions. a more efficient and responsible use of natural resources. Through their products and services, they contribute to • Jain Irrigation Systems is the leading provider of micro the protection of the environment, the climate, biodiver- irrigation systems in India. The company works with sity and natural ecosystems. smallholders at both ends of the food supply chain: it provides farmers with irrigation systems that improve For GB models, a distinction is made between models their yields by USD 100–1,000 per acre and purchases that develop and offer green products and services (such their produce (contract-farming). It is one successful as waste management, renewable energy) and those that example of an IB model that integrates the poor on the make their products or services in an environmentally demand as well as the supply side. Furthermore, the friendly way (e.g. ecotourism, resource-efficient products). company trains people to become distributers and engi- In the first case the green aspect is found in the output, in neers, providing additional income opportunities to the the other in the process. Well-known examples of green local population. In addition to the employment and business models include ‘car sharing’, durable consumer income effects, dripping irrigation is much more water- products, creating value from waste or renting models. and energy-efficient than the traditional methods of irrigation (flood irrigation).6 What are green and inclusive business (GIB) models? • The SOLARKIOSK company was established in 2011 There are also companies that operate a green and at in Germany and provides off-grid communities with the same time inclusive business model (‘triple bottom sustainable energy and energy-related products and line’). These companies are able to produce both positive services through its solar-powered business hubs. social and ecological effects, based on a financially viable Using the franchise model, the company had managed business model. A good example is the use of off-grid to establish subsidiaries in six countries by the end of renewable energy solutions in rural areas: a new market 2014. SOLARKIOSK enables BoP communities to use is created and access to energy is provided for the poor, their potential for entrepreneurial activity by provid- while at the same time negative environmental effects ing energy services, such as charging mobile phones, are reduced compared with the use of traditional prod- internet connectivity, cooling of products and medicine ucts (such as diesel-powered generators). IB models are and other services and sustainable alternatives to the relevant from a development perspective for different use of unsustainable fuels (firewood, charcoal, kerosene reasons. First, IB models solve social or environmental and diesel). Training and support is provided, mainly to issues that may not have been solved otherwise and their female entrepreneurs.7 profit-oriented nature sustains them beyond any tradi- tional donor intervention. Second, from a private sector development perspective, IB models can be seen as an effective way to promote financially sustainable busi- nesses for inclusive growth. These models also represent innovative approaches to business that can be dissemi- nated and replicated. 5 G20, 2015. 6 IFC, 2012. 7 http://solarkiosk.eu/ Introduction | Green and Inclusive Business Toolbox | 7 Challenges to the development of GIB Finance • Access to credit is limited for BoP producers/suppliers GIB models face specific challenges, which have been and distributors and cash flow can be unpredictable. widely discussed at numerous events and in various This can, for example, affect the BoP’s ability to process studies.8 The most important challenges can be clustered advance orders, access warehousing for storage and into the following areas. invest in market development. • Some GIB models, such as models in the area of renew- i Information • There is a lack of market research on current behav- iour, willingness to pay and price points, as well as on able energy, are proven business cases and well-known by bankers and other financiers. Other models are unfamiliar to bankers, provoking a more conservative sales channels and purchasing preferences among the approach when it comes to financing decisions. low-income market segment, which could be used to • The purchasing power of target customers is limited, inform product development, distribution and pricing but there is scope for high-volume sales. While the size strategies. of BoP markets in aggregate is significant, at the individ- • A new market must be developed and behavioural ual level spending potential is restricted and differs ac- change is needed in the target customer group. This is cording to circumstances, e.g. between men and women, because many BoP products are so-called ‘push prod- and between rural and urban low-income segments. ucts’, meaning there is currently a lack of perceived need • The level of financial inclusion among target custom- for the product, which makes it difficult to sell (e.g. men- ers is low. This means IB models must leverage new and strual health products or clean cooking stoves). Some- innovative mobile payment systems, such as mobile times new distribution channels need to be created to money. reach these markets. • There is little access to information on new production methods and the use of new materials or chemicals for Partners and networks more environmentally friendly products. • New and unconventional partnerships must be creat- • Low levels of education and training among the BoP ed – for instance, with NGOs, academia or international population can affect the standardisation of products organisations – to address contextual challenges such as by BoP producers, which means investment from the IB a lack of infrastructure (roads, energy, water), adapt new model may be required. environmentally friendly technological solutions and to reinvent business processes so they can circumvent barriers to accessing rural BoP customer markets in particular, but also those living in urban slums. • Networking opportunities are required to engage potential partners in the delivery of the core business model or the provision of capacity-building support, and to link up with other businesses operating GIB models in order to address sector-specific challenges. 8 See, for instance: GIZ (2013), Inclusive Business Models — Options for Support through PSD Programmes; or Endeva (2013), Inclusive Business Policies — How governments can engage businesses in meeting development goals. 8 | Green and Inclusive Business Toolbox | Introduction Markets It is in the context of these challenges and opportunities • Access to markets and potential customers is lacking. that targeted technical cooperation measures can play a Some businesses are not yet present in green or BoP vital role in supporting IB models to scale their impact markets and therefore need support on how to enter and, in so doing, generate positive commercial and devel- new markets and identify customer needs and demands. opment returns. • Green and inclusive public procurement would open up new markets for green and inclusive business, but so far only very few governments take sustainability criteria into account in their public tenders. • For many customers the price of a product or service is still the main purchasing incentive and awareness of the sustainability aspects is still low. Capacity development • The capacity-building partners required to provide online and in-person capacity-building support to busi- nesses, including to service providers and incubators, are lacking or weak. Few service providers offer services designed for the needs of GIB models. • Skills gaps exist among entrepreneurs that prevent them from successfully turning their ideas into reality or scaling up their businesses. Skills gaps are also a challenge for BoP producers and business partners, for instance in terms of ensuring product quality or access Structure of the GIB Toolbox to markets. This GIB Toolbox was created to assist planning officers, project leaders and staff involved in private sector devel- Policy opment and other sector projects to promote GIB models • The regulatory environment may prevent private initi- within existing or future development cooperation pro- atives providing ‘public goods’ (e.g. access to clean water grammes. Within the scope of such programmes, the tools or electricity), despite a lack of adequate state provision. presented in this document can: • Missing or incomplete legal frameworks add to the • stimulate local business start-ups that intend to apply complexity of the business environment. GIB models (herein referred to as the ‘Start’ phase); • A lack of a legal form for companies operating GIB • encourage existing small and medium-sized enterprises models9 can mean such organisations sometimes face and large companies to adopt GIB models by expanding problems of formalisation. Many start off as non-profit their target groups and adapting their products, services organisations, but later need to be converted to com- and processes to these new target groups, or by integrat- mercial operations. ing small-scale producers into their value chains (herein • Policy-makers may be unaware of GIB models and referred to as the ‘Adopt’ phase); their associated challenges (such as policy-related • support the scaling up of existing GIB models so they barriers) or of examples of successful GIB models from a achieve greater outreach and development impact variety of sectors. (herein referred to as the ‘Scale’ phase).10 9 GIZ, 2014 10 GIZ, 2013 Introduction | Green and Inclusive Business Toolbox | 9 It should be noted that the approaches and tools present- The GIB Toolbox presents a series of generic ‘tools’, illus- ed are not necessarily new to development cooperation; trating each one with a specific example of its application rather, they have been applied and adapted to support the either in an international context or in a specific country development of GIB models. This toolbox provides a selec- programme. The tools are ordered according to the chal- tion of approaches that are relevant to all the three stages lenge they address. For each tool, a quick reference guide is of GIB enterprise development. Moreover, the tools pro- provided summarising the following key characteristics of vided can be used by programmes to promote GIB models the tool in question: in more than one of these three stages. The tools presented below have been deployed in Colombia, Costa Rica, Egypt, • ‘Type of tool’ categorises the tool according to the type Georgia, India, Indonesia, Morocco, Mozambique, Namibia, of challenge it addresses . The categories are: Peru and Tunisia as well as at regional and global levels. – Information They can also be applied in other geographical contexts. – Finance However, it should be noted that context matters and the – Partners & networks tools need to be tailored to the location in which they are – Markets being deployed. The tools may also serve as inspiration for – Capacity development the development of new GIB tools. – Policy. • ‘Complexity’ describes how easy it is to apply the tool, Finally, GIB models do not exist in isolation and need ranking each low, medium or high. to be supported by an enabling environment. Therefore, • ‘Expertise’ indicates the degree of expertise in inclusive the approaches described for promoting GIB models not business (low, medium or high) required to apply the only involve promoting GIB models directly by providing tool. financial and technical support, but also indirectly by • ‘Cost’ refers to how expensive it is to replicate the tool: building the GIB ecosystem, which acts as an enabling en- – € = less than €10,000 vironment. As such, incorporating both direct and indirect – €€ = €10,001 – €50,000 approaches into a given programme is to be encouraged. – €€€ = €50,001 + • ‘Time frame’ gives an insight into how long it takes to implement the tool. • ‘Sustainability dimension’ indicates whether the tool can be applied for green and/or inclusive business mod- els. • ‘Phase of development’ categorises how appropriate each tool is for application in the three different phases (Start, Adopt and Scale) of the inclusive business devel- opment continuum. 10 | Green and Inclusive Business Toolbox | Introduction Table: Summary of IB tools Tool Tool Type Complexity Expertise Costs Time Sustainability Phase of Frame Dimension Development Mapping the Information Low Low € 4 months Green and Start/Scale Inclusive Busi- inclusive ness Ecosystem Global Entrepre- Information Medium Low €€€ 9 months Green and Start neurship Monitor inclusive Digital Crowd- Information Low Medium € 12 Green and Start/Scale solving Platform months inclusive (needs assesment and imple- mentation) Inclusive Business Partners and Low High €€ 7 months Green and Adopt/Scale Sector Dialogue: networks inclusive Peer-to-peer Networking for Stakeholders of one Sector Competition Partners and Medium Medium €€ 6 months Green and Adopt/ Scale for Inclusive networks inclusive Business Development Partners and Medium Medium €€ 12 Green and Start/Adopt/ Partnerships with networks months inclusive Scale the Private Sector for Green and In- clusive Business Digital Marketing Markets Medium Medium € 8 months Green Start/Adopt Platform for Inclusive Business Linking MSMEs Markets Medium Medium €€ 7 months Green and Adopt/Scale to Supply Chains inclusive Opening New Markets Medium High €€ 7 months Green Adopt/Scale Markets with Low-carbon Products Introduction | Green and Inclusive Business Toolbox | 11 Tool Tool Type Complexity Expertise Costs Time Sustainability Phase of Frame Dimension Development Cross-Border Capacity Low Medium € 5 months Green and Start Start-up development inclusive Programme Incubator Mana- Capacity Medium Medium €€€ 11 months Inclusive Start/Scale ger Training development Scaling Program- Capacity Low Medium €€ 12 months Green and Start/Scale me for Green and development inclusive Inclusive Business Business Skills Capacity Low Medium €€ 5 months Inclusive Start/Scale Training For development BoP-Entrepreneurs Remote Strategic Capacity Medium High €€ 6 months Inclusive Adopt/Scale Advisory Services development Navigator for Capacity Medium Medium €€€ 15 months Green Start Green Incubators development Small and Capacity Low High €€€ 24 months Green Start/Scale Medium-sized development Enterprise Adaptation to Climate Change Entrepreneurs’ Finance Low High € 3 months Green and Scale Guide to Impact inclusive Investing Local Approach to Policy Medium Medium € 8 months Green Adopt/Scale Supporting Green Businesses Strategic Study Policy Medium Medium €€ 6 months Inclusive Start on Setting the Framework for Inclusive Business Value Chain Policy Low Medium €€ 5 months Green and Start Selection – Integ- inclusive rating Economic, Environmental, Social and Institu- tional Criteria Promotion of Policy High Medium €€€ 24 months Inclusive Adopt Disability-inclusive Workplaces Information Mapping the Green and Inclusive Business Ecosystem | Green and Inclusive Business Toolbox | 13 Mapping the Green and Inclusive Business Ecosystem Increasingly in recent years, entrepreneurs have developed green and inclusive business models in very different sectors and countries. However, to date, relatively few of these ventures have managed to attain a significant scale. For development partners and policymakers to be able to support Green and Inclusive Busi- ness (GIB) models and make them commercially viable and scalable, they need to understand the challenges present in the GIB ecosystem. Besides companies adopting GIB models, important actors in this ecosystem include, among others, banks and investors as well as incubators and accelerators. While research has exposed the typical obstacles that can hinder the development of GIB, it is crucial to understand the local context of the country, region or city in question, including its socio-economic conditions and local actors. With the results of this kind of detailed mapping exercise at hand, development partners and policymakers can then define and adapt programmes so that they support the scaling up and replication of GIB models. ENABLERS FOR CHANGE — A MARKET Tool objective LANDSCAPE OF THE INDIAN INCLUSIVE The main objectives of the study were as follows: BUSINESS ECOSYSTEM • To gain a better understanding of the challenges and opportunities present in the Indian IB ecosystem, with Overview a particular focus on the actors that support companies incorporating IB models to increase the outreach of Type Information their IB models (‘scale up’) or adapt and implement an Complexity Low existing model in a different market (‘replicate’). The Expertise Low study aimed at understanding the services that incuba- Cost € tors and accelerators provide in India and their underly- Time frame 4 months ing business models and, in so doing, sought to identify Sustainability dimension Green and inclusive sectorial, geographic and service-related gaps. • To identify further barriers and the actions required to Phases Start Scale promote IB models. Tool in brief In 2012, the GIZ private sector development team in India commissioned a market landscape study on the country’s inclusive business ecosystem to gather information on, for example, relevant stakeholders and the opportunities and challenges for Inclusive Business (IB). The work was con- ducted by a local consultancy firm, which subsequently published Enablers for Change — A Market Landscape of the Indian Social Enterprise Ecosystem.11 The research sought to provide a better understanding of the current status of the sector and of any gaps needing to be addressed for the development of a stable IB ecosystem. The study rec- ommended the production of a proposed Indo-German bilateral programme strategy on responsible enterprise finance, which has since been approved and is now being implemented. 11 Note that the term ‘social enterprise’ in this context means ‘inclusive business’. For further information on the terminology related to IB models, see: GIZ and BMZ (2011), Promoting inclusive business models for sustainable development — Experiences of German development cooperation. 14 | Green and Inclusive Business Toolbox | Mapping the Green and Inclusive Business Ecosystem Target group ecosystem, the services they provide and their perceptions The study’s primary target group was the GIZ project team regarding the challenges arising in the ecosystem. in India that would use its insights to inform their devel- opment of strategies to support start-ups with IB models. To generate inputs for the study, a half-day consultation workshop entitled ‘Identifying an Agenda for Action — Tool description Overcoming Indian IB Ecosystem Challenges’ was held in The market landscape study of the Indian IB ecosystem New Delhi. The workshop brought together senior-level was based on desk research, individual face-to-face stake- representatives from impact investors, IB incubators, banks, holder consultations with incubator representatives and government, bilateral agencies and business associations to impact investors in India, an online survey, and a establish consensus on the prioritised challenges for action. multi-stakeholder consultation workshop involving rele- The workshop helped to identify areas of synergy and to vant stakeholders. coordinate an action plan for (a) overcoming constraints and (b) helping to expand IB’s throughout the country. The The desk research provided an overview of IB-focused workshop included interactive sessions and discussions incubators and impact investors operating in India (which designed to generate inputs from the participants. The did not necessarily need to be headquartered in the first interactive session involved participants prioritising country), including names, background information and the challenges the IB industry faces in the Indian context. the types of products and services offered. This overview Subsequently, the group broke up into four smaller groups was illustrated with examples of international and Indian and, with reference to the challenges identified, discussed investors that offer these products and services. the following questions: • What are the causes and consequences of these Two surveys – one focused on impact investors and one on challenges? incubators – then helped to triangulate the demographic • Who is affected by these challenges? information identified in the desk research, clarify any • What solutions exist to address each challenge? information gaps, and gather perceptions regarding the • What other solutions could be developed? challenges and solutions. The surveys asked, among other • What action can each stakeholder group take to address things, about geographic and sector foci, products offered this challenge/implement these identified solutions? and companies supported. The survey was conducted using an online survey tool. To ensure a high response rate, The results of the survey and workshop discussions then the survey link was circulated to respondents in an email, informed the write up of the market landscape study (see which was then followed up by a telephone call requesting the link listed in the Further Information section). their participation. In the end, a total of 16 incubators and 33 impact investors contributed to the survey. Project set-up A technical advisor from GIZ India’s Private Sector Face-to-face interviews were held with 12 stakehold- Development (PSD) project oversaw the project, which ers, who were representatives from either incubators or was implemented by a local consultancy firm with exper- impact investors, to clarify their respective roles in the tise in private sector development. Mapping the Green and Inclusive Business Ecosystem | Green and Inclusive Business Toolbox | 15 Tasks and timeline The project ran for four months and consisted of the Guide for Mapping the Entrepreneurial Ecosystem following four phases: There are numerous ways to map the entrepreneurial ecosystem and it can be rather challenging to decide Work plan tasks M1 M2 M3 M4 which are the most important aspects influencing the (in months) conduciveness of an ecosystem and what to look for when analysing it. Research and survey preparation The Sector Programme Sustainable Economic Policy and Private Sector Development has developed the ‘Guide Survey for mapping the entrepreneurial ecosystem’, which guides application the user through the process. The guide defines the steps to be taken and includes a number of additional Workshop tools which are needed along the way. First, the guide delivery defines the entrepreneurial ecosystem as the product of a surrounding environment; more precisely Report 1. the business and investment climate; drafting 2. its interacting actors; and 3. the culture and attitude towards entrepreneurship in Costs society. The study and consultation workshop formed part of a larger contract with the local consultancy firm. The Furthermore, the guide provides details on how to col- component of the contract relating to the study amounted lect and analyse data on each of those three elements. to 26 days. Note that local GIZ staff time was involved in With regards to the business and investment climate reviewing the study, supporting its preparation in areas the guide includes a selection of indices and benchmark reports (e.g. ‘World Bank Doing Business Report’; ‘World like invitation management, and implementing the con- Economic Forum Competitiveness Report’), which can be sultation workshop. As the workshop was held at the GIZ used as sources for relevant data, as well as a list of in- office, no venue costs were incurred and only the provi- dicators that have proven particularly relevant to assess sion of lunch and refreshments for the 20 participants and the legal and regulatory environment. With regards to organisers was required. The publication’s design, layout the ‘actors’ dimension, the guide provides a means to and printing costs will depend on its extent and print run, display the different actors in the entrepreneurial eco- and need to be considered in addition to the consultancy system, e.g. geographically or according to their current service. development stage (e.g. start, scale, grow). To collect information on the element ‘culture’ the guide suggests conducting semi-structured interviews or the use of Items focus groups with various stakeholders. Consultancy service: 26 person-days All in all, the guide serves as methodological guidance Venue for assessing the current state of an entrepreneurial Catering ecosystem and aims to produce hands-on results and information which can inform future activities. Design, layout and printing of publication For further information please contact the Sector Programme Sustainable Economic Policy and Private Sector Development. The contact person is Alexandra Oppermann (alexandra.oppermann@giz.de). 16 | Green and Inclusive Business Toolbox | Mapping the Green and Inclusive Business Ecosystem RESULTS AND LEGACY The initial market study provided information on — and continues to serve as a reference guide to — potential areas where GIZ can get involved and facilitate the building of a strong IB ecosystem in India. In terms of its legacy, since the study’s findings were published, GIZ PSD India has set up a project to train incubator managers in order to tackle the challenges identified (see Chapter 13 for details of this tool). Moreover, providing capacity development support to both incubators and impact investors has become one of the three focal areas of the new GIZ Responsible Enter- prise Finance Programme. Success factors and lessons learned A key lesson learned from this project was the value of The success factors of this project were: conducting a baseline and market landscape study when • to ensure that the initial desk research provided thor- first engaging with a topic in order to better understand ough and structured information on the organisational who the key players are and their respective roles within structures of investors and incubators and on the prod- the wider system. ucts and services they offer, so that the survey content and results were meaningful; As a result of this study, GIZ — which, in India, is a new • to follow up with potential respondents and ensure they player in this sector — got to know more about the system completed the surveys in order to boost the response than those already operating in this field. rate. Further information and GIZ contact The study Enablers for Change — A Market Landscape of INVEST. CATALYZE. MAINSTREAM. The Indian Impact the Indian Social Enterprise Ecosystem is available online Investing Story is a detailed study on the development of at: www.giz.de/en/downloads/giz2012-enablers-for- the impact investment industry in India and was commis- change-india-en.pdf sioned by GIZ in 2014. It is available at: www.intellecap. com/sites/default/files/publications/IIIR_Final%20 The precursor study Responsible Finance. A Catalyst for report_May6_low_res.pdf Responsible Business — International and Indian Trends and Changes in Responsible Finance is available at: www. For more information on this work, contact the bilateral giz.de/en/downloads/giz-2012-responsibe-finance-en.pdf programme Private Sector Development, India. Global Entrepreneurship Monitor | Green and Inclusive Business Toolbox | 17 Global Entrepreneurship Monitor Many governments and development organisations set themselves the goal of improving the framework condi- tions for entrepreneurs in a given country. Numerous factors influence how conducive a country is to entrepre- neurial activity and how high the chances are for entrepreneurs to succeed with their business activities. Often, policy-makers and other decision-makers lack information and reliable data on entrepreneurial activity and the population’s attitude towards entrepreneurship in their country. They therefore find it difficult to identify the right measures needed to improve the framework conditions so that entrepreneurs can flourish. The Global Entrepreneurship Monitor (GEM) aims to tackle the problem of poor and scarce information by providing a methodology to analyse the entrepreneurship scene in a given context and to compile it in a report. More precisely, GEM advises how to collect, analyse and interpret data on the entrepreneurial capacities of individuals, including entrepreneurial activities, aspirations and attitudes. By joining GEM and forming a national research team, local policy-makers can gain valuable information on gaps and constraints but also strengths and efficient support schemes in the entrepreneurial ecosystem. In Georgia, GIZ, on behalf of BMZ, supported the set-up and the work of the Georgian national team in preparing the first GEM report, in 2014. WOMEN ENTREPRENEURSHIP AND The resulting reports were used to raise awareness of NATIONAL GEM REPORT FOR GEORGIA entrepreneurship in Georgia, to identify opportunities and to point to constraints that hinder entrepreneurship from Overview flourishing. The information serves as basis for informed decision-making by policy-makers, to enable them to Type Information develop policies and regulations that foster and support Complexity Medium entrepreneurship. Expertise Low Cost €€€ Time frame 9 months Sustainability dimension Green and inclusive Phase Start Tool in brief Within the last decade, entrepreneurship in Georgia has developed rapidly. In 2014, the GIZ Private Sector Devel- opment (PSD) Programme South Caucasus in cooperation with the Caucasus University published the first GEM re- port on Georgia. Following the instructions and advice of the GEM consortium, they investigated entrepreneurship at a national level. The underlying rationale was to capture the policies and framework conditions for entrepreneur- ship as perceived by private sector actors and the general public. In addition to the national report, GIZ supported the national team in using the data to prepare a special report on women’s entrepreneurship in Georgia. 18 | Green and Inclusive Business Toolbox | Global Entrepreneurship Monitor Tool objective Tool description The overall objectives of forming a GEM national team In 2014, the Georgian PSD programme put forward the and preparing the reports were: idea to their local partners of supporting the formation of • to provide information on the state of entrepreneurship a national team and preparing a GEM report on Georgia. for the government, the private sector and society; The idea was partly inspired by other GIZ programmes, • to raise both the government’s and the public’s aware- which had supported their respective countries in taking ness of entrepreneurship in Georgia in general and the part in GEM. role of women in particular; • to provide a database on entrepreneurship and bench- In the Caucasus School of Business (CSB), the PSD pro- mark the country’s ecosystem for entrepreneurship gramme quickly identified a capable and eager partner against that of other countries; that could take the lead of the GEM national team in • to identify achievements and remaining challenges for Georgia. The CSB is part of the Caucasus University and economic policy reforms and interventions to support the institute is focusing its research on entrepreneurship. private sector development; Therefore, it had the necessary capacities and expertise • to connect the players in the entrepreneurial ecosystem. to lead the work of the GEM national team. Driven by the notion of generating new information on entrepre- Target group neurship, it was compelling for them to take the lead in The GEM report addresses two main groups. First, govern- compiling the report. ment entities, policy-makers, chambers of commerce, private associations and other organisations that are The application process for a country to join GEM is easy working in the field of entrepreneurship and private sec- and consists of filling out the application form and send- tor development can use the report as tool for informed ing it, together with CVs of the national team members, decision-making and monitoring. Second, Georgia’s pri- to the GEM consortium. The GEM consortium, which vate sector actors, which comprise entrepreneurs, micro, oversees the national teams, has set up certain standards small and medium-sized enterprises (MSMEs) and estab- as regards the capacities of the national team members. lished companies, get an overview of the local ecosystem. They ask for an academic research background, project Global Entrepreneurship Monitor | Green and Inclusive Business Toolbox | 19 was then delivered to the GEM consortium for validation and to be included in the Global GEM Report. The whole report creation process took one year to be completed. Once the Georgia country report was finalised, it was up to the PSD programme and CSB to circulate and promote the findings. To this end, the PSD programme and CSB held round-table meetings and workshops all over the country to present the findings and discuss them with stakeholders. The Georgia report can also be found on the official GEM website and Georgia was added to the overall list of countries benchmarked in the GEM Global Report. This way, Georgian stakeholders can also compare their national climate for entrepreneurs with other countries, such as neighbouring countries or other peers. management skills, knowledge of SPSS statistical software and report writing experience. In addition, the members Project set-up of the national team do need to be fluent in English. The GEM report in Georgia was a joint project of the PSD programme and CSB. It was supported by the Depart- The GEM consortium provides a standardised methodol- ment for Entrepreneurship of the Georgian Ministry of ogy for the data collection and analysis. Local researchers Economy and Sustainable Development, the Chamber of – the respective GEM national teams – are responsible Commerce and Industry and a number of local associ- for adapting the standardised methodology to the local ations. The GEM consortium provides a standardised context and use it on the ground to collect country-spe- process for the report creation; thus, the suggested tasks cific data. Also, the GEM national team can decide to add only had to be divided between the different participants specific questions to the standardised questionnaire to of the Georgia national team. For the APS a Georgian zoom in on a specific topic relevant for the country’s local market research company was hired, the NSE was entrepreneurial ecosystem. In the case of Georgia, the conducted by CSB and the final data analysis as well as the national team decided to add questions on women’s report writing was executed by CSB. The PSD programme entrepreneurship. oversaw the process and played a key role in disseminating the final publication through various events. As the methodology suggests, the data were collected through two surveys. (1) The Adult Population Survey (APS) collects data from a random representative sam- ple of 2,000 people aged between 18 and 64. In Georgia, this survey was conducted by a local market research company, which was hired as a consultant by GIZ. (2) The National Expert Survey (NES), for which 36 national experts in the field of private sector development and en- trepreneurship were interviewed, was carried out by CSB itself. In total, the data collection phase took around four to five months. In a second step, all data from the APS and the NES were submitted to the GEM consortium and CSB. CSB was responsible for analysing the data in detail and developing the country report. The final draft of the report 20 | Green and Inclusive Business Toolbox | Global Entrepreneurship Monitor Tasks and timeline Work plan tasks M1 M2 M3 M4 M5 M6 M7 M8 M9+ (in months) Familiarise with GEM methodology and agree on local research design Data collection through surveys Data analysis and draft report Report review by consortium Finalise report Publication and dissemination Costs Items GEM indicates that the overall annual costs average Staff time: 5 person-days around USD 123,250, but recognises that the costs vary widely around the world. The highest costs are calculat- Conducting NES: 15 person-days ed for the APS (GEM estimates USD 53,000). The GEM Consultant for conducting APS coordination fee is USD 9,250 per year. In total, the cost for conducting the Georgian GEM report (National, Women, Report writing: 20 person-days Transnational Diaspora Reports) were well below half of Layout and print what the GEM consortium suggested. GEM membership fee Promotional campaigns Global Entrepreneurship Monitor | Green and Inclusive Business Toolbox | 21 Results and legacy Success factors and lessons learned After the GEM report was published in mid-2015 the The following factors contributed to GEM Georgia’s government undertook a number of reforms to improve success: the economic framework conditions to improve the • As other GIZ programmes had worked with the GEM entrepreneurial ecosystem in Georgia. It also worked to methodology before, the Georgian PSD programme enhance communication of the existing and forthcom- could draw upon the experience of, and lessons from, ing government programmes and tools to support the their colleagues. business sector. While publicly available documentation • With the CSB, the PSD programme had a very strong of government efforts does not provide explicit reference and motivated partner, who drove the report compiling to the GEM reports, there is a correlation between the gov- process forward. ernmental efforts and what was included in the report and voiced at stakeholder meetings as major gaps in the entre- The lessons learned were: preneurial ecosystem. Such cases include the introduction • The standardised GEM methodology is rather strict of incentives and support to entrepreneurs targeted at and does not allow for much variation in the process. youth and young adult populations. Georgia ranked very That can impede the compilation of the report if one is low in entrepreneurship among youth and young adults. not familiar with the individual steps the consortium suggests. In addition, the GEM methodology itself received positive • The second GEM report (forthcoming 2017) was com- attention from the local entrepreneurship development piled by the same actors as the first version. Hence, the agency, which then initiated an enquiry to conduct whole report creation proceeds more smoothly and research into how well communicated and perceived its faster than the first one. tools and projects were among potential beneficiaries (especially in rural areas). Further information Furthermore, the GEM promotion campaigns provided a and GIZ contact physical platform for different stakeholders involved in The GEM reports are available at: entrepreneurship to get together and exchange ideas and http://gemconsortium.org/country-profile/63 interests. This is the case for both the national GEM report on Georgia and the report on women. For instance, with Further information on CSB is available at: regards to the women’s report the meetings which took http://www.mba-spectrum.com/schools/cauca- place in the course of the promotion campaign reaffirmed sus-school-of-business-tbilisi#.Wbems4VOLIU that one of the obstacles female entrepreneurs are facing For more information on the PSD programme South is a lack of sufficient support mechanisms after starting Caucasus visit the programme’s website: a family. That is a significant finding because in gener- https://www.giz.de/en/worldwide/20324.html al, among both men and women, there is a dominating Contact person: Rati Anjaparidze consensus that both genders are equally exposed to good (rati.anjaparidze@giz.de) opportunities to start a business. The GEM consortium explicitly suggests collecting the data on an annual basis. This way the reports can be used to see how entrepreneurship in a given context has devel- oped over time. The Georgian GEM team (CSB and PSD) followed that advice, collected data for 2016 and compiled another GEM report, which will be published in 2017. 22 | Green and Inclusive Business Toolbox | Digital Crowd-solving Platform Digital Crowd-solving Platform Currently, most innovation support programmes only support the top drivers in a market. Thus, fostering innovative practices along the ‘base of the technology pyramid’ and moving them up the value chain will trans- form the market into a higher level of technology and innovation usage. One very promising approach is crowd- solving. Like crowdfunding, crowd-solving profits from the power of the community by appealing to a large number of people. Crowd solving uses the innovation potential, the openness for ideas and the flexibility of the crowd to make a sustainable impact. Development partners can support the setting up and replication of crowd-solving platforms so that more people in a given society and context can participate in finding new ideas and use technology in a way that benefits society and the environment. INTRODUCING THE EGYPTIA entrepreneurs and small businesses by introducing a CROWD-SOLVING PLATFORM new problem-solving approach. Through crowd-solving, ‘YOMKEN.COM’ IN TUNISIA Tunisian entrepreneurs and businesspeople have a new and affordable tool at their disposal to find appropriate Overview and tailor-made solutions for their specific technical or organisational challenges. The indirect intention is that: Type Information 1. more successful companies can easily grow and employ Complexity Low more people; Expertise Medium 2. young entrepreneurs with innovative ideas are connect- Cost € ed with economic opportunities and bring technologi- Time frame 12 months (needs assess- cal development to Tunisia; ment and implementation) 3. different segregated actors of the innovation ecosystem Sustainability dimension Green and inclusive become connected in an inclusive manner. Phases Start Scale On a higher aggregated level, the following benefits might result: recognition of innovation as an engine for econom- ic growth, higher incomes, lower unemployment rates, Tool in brief lower consumption of resources, interlinkage between In 2016 the GIZ Responsible and Inclusive Business Hub innovative crowd-solvers and businesses and other organ- (RIBH) Middle East and North Africa (MENA) has sup- isations, etc. ported the replication of the Cairo-based crowd-solving platform Yomken.com in Tunisia. Yomken.com was established by Istebdaa’ LLC, a social enterprise. Using its own ‘Open Innovation’ model, it is the only platform in the Arab region that specialises in crowdsourcing ideas and solutions for the industrial and societal challenges faced by corporate, governmental and social organisations. Additionally, it provides a gateway for financial platforms (venture capital, crowdfunding platforms and others) to support and invest in innovative projects. Tool objective The main aim of the project was to expand the prob- lem-solving capacities of the ecosystem for start-ups, Digital Crowd-solving Platform | Green and Inclusive Business Toolbox | 23 Target group could be engaged in the new model. It identified possible The crowd-solving model generally matches prob- sectors that have potential for short- and medium-term lem-solvers with solution-seekers. The target group is employment creation through crowd-solving approaches. therefore two-sided: On the one hand, there are solu- Based on those findings, Yomken.com then adapted the tion-seekers, who could be anyone with a problem Egyptian model and launched the Tunisian platform in (challenge) that might be solved by the community October 2016. (problem-solvers), e.g. entrepreneurs, businesses, the • Step 1 – Baseline study and needs assessment. Baseline local government or donors. On the other hand, there are analysis on the readiness of the Tunisian ecosystem and problem-solvers. This could be anyone who is able to con- the market potential, as well as a needs assessment by an tribute to the challenges posted, e.g. students, consultants, external consultant. entrepreneurs, businesses. The cooperation with Yomken. • Step 2 – Adjustment and set-up of the local com targeted the Tunisian social and inclusive business crowd-solving website. Based on the results of the community as solution-seekers. Problem-solvers could analysis (step 1) the RIBH team decided that there is be Tunisians from the local community or the diaspora, enough potential in Tunisia to replicate the existing but also unemployed youth and entrepreneurs. These are crowd-solving model. The goal was to use existing expe- given the opportunity to apply their innovative solutions rience and to adjust the Egyptian model to the Tunisian in return for money or employment opportunities. As an context and accordingly to transfer the experience to add-on, bigger companies and international (donor) or- the expected Tunisian partners/stakeholders. ganisations can sponsor the solving of societal challenges. For the implementation phase, RIBH MENA chose to cooperate with Yomken.com because they are the most For instance, ‘Acacias for all’, a Tunisian social enterprise appropriate partner in the region (social enterprise, that focuses on training smallholders (e.g. restoration regional experience, not donor-driven, etc.). In a final techniques, the cultivation of the plants based on climatic step the consultant and Yomken.com set up the online conditions of designated regions) has set the objective to platform and the Tunisian crowd-solving focal point plant one million trees before the end of 2018 through its was trained. campaign #1MillionTreesTunisia. In doing so, it aims to • Step 3 – Challenge identification workshops. To integrate digitalisation in its process, thus it is considering identify challenges for crowd-solving, the consultant a mobile application that enables its users to follow the conducted and facilitated two workshops with Tunisian campaign and also locate places for planting. Therefore, companies, SMEs and other potentially interested local they posted a challenge on the crowd-solving platform partners. looking for a mobile application that provides, for example, • Step 4 – Awareness-raising events and follow up. The geolocation for planted trees, calendar tracking and notifi- initial report identified the establishment of an online cations, as well as the ability to download a tree’s profile (e.g. and offline community as a crucial factor for success. To plant type, soil type, best seeds, etc.). Users of the platform respond to this need the consultant conducted online could propose their solutions, one of which was chosen and awareness-raising activities through social media plat- developed by the solution-finder for prize money. forms and face-to-face formats in Tunisia. • Step 5 – Winning solutions for the first cycle of chal- Tool description lenges. In order to successfully launch the platform and GIZ cooperated with Yomken.com and a consultant to im- further test crowd-solving as a way to address social plement the project. As a first step, in the first half of 2016 and development challenges, RIBH MENA sponsored a a consultant conducted a baseline analysis on the readi- small number of challenges to showcase the potential. ness of the Tunisian ecosystem and the market potential Furthermore, the project seeks to work on identifying for the crowd-solving model. The baseline study looked challenges and sponsorship from companies, local and into the potential for crowd-solving solutions in Tunisia, international organisations and to engage solutions pro- and mapped potential stakeholders and key players that vided from the public. 24 | Green and Inclusive Business Toolbox | Digital Crowd-solving Platform • Step 6 – Final report and way forward. In order to evaluate the platform, a report has been prepared on the implementation of the newly set-up Tunisian model and on the process of the model’s replicating strategy in Tunisia. Project set-up RIBH MENA cooperated with Yomken.com, a crowd-solv- ing platform established by Istebdaa’ LLC, an Egyptian social enterprise. GIZ supported the replication of the platform by commissioning consultants to undertake a baseline study, helped with the training of a local focal point in Tunisia and financed a challenge on the website. Yomken.com provided their expertise, investment costs for the website and their own human resources. Yomken. com will continue the operations for the website after the project ends. Tasks and timeline Work plan tasks M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 (in months) Baseline study and needs assessment Adjustment and set-up of the local crowd-solving website Challenge identification workshop(s) Awareness-raising events and follow-up Winning solutions for the first cycle of challenges Final report and way forward Digital Crowd-solving Platform | Green and Inclusive Business Toolbox | 25 Success factors and lessons learned A few months after the launch, the concept of crowd-solv- ing has proven to be of interest to, and received buy-in from, all types of stakeholders; namely, inclusive business- es, governmental entities, and development stakehold- Costs ers. The replicability of the Yomken.com model was an Items interesting exercise for the RIBH MENA team in Egypt to transfer its knowledge and work on the platform to make Needs assessment (by GIZ) its features adaptable to any other country for future repli- Set-up of an online platform (by Yomken.com in cation. Given the results from the short timeframe and the cooperation with GIZ) relatively reasonable implementation budget, the success factors and lessons learned are that: Set-up of a focal person in Tunisia (training and capacity • the project is replicable and might expand in the future building of new focal person) by increasing the reach to other countries; Financing of a challenge (flexible amount for GIZ • large corporates can conduct the challenge identifica- depending on type of challenge and needs identified for tion workshops in certain value chains to come up with solution implementation) their specific needs and these workshops can call young Workshops for challenge identification (location, catering, innovators to find solutions that they can transform printing materials, consultants) optional online or offline into start-ups afterwards; • there is potential to collaborate with other GIZ pro- Awareness-raising events (location, catering, printing grammes either in Tunisia (e.g. agriculture and innova- materials, consultants) tion), or in other MENA countries to adopt the concept of crowd-solving and to engage the community in their Results and legacy various developmental projects; The main results are as follows: • crowd-solving is filling a niche in the broad range of • The community network in Tunisia is well in place and problem-solving options for entrepreneurs; there is high demand from Jordan, Morocco and Pales- • it is opening a new channel for donor organisations to tine to utilise the features of the platform. spend money (by sponsoring challenges for NGO/busi- • A Tunisian focal person has been put in place. The ness problems); person is running the Yomken-Tunisia branch (this • strengthening a social enterprise with the respective includes identifying and announcing challenges and business attitude instead of an NGO facilitated busi- moderating the implementation of solutions). ness-like management of the project, including clear • Capacity building and knowledge transfer to Yomken. elaboration of the business case. com. • Almost 40 challenges are currently online and numbers Further information are increasing. and GIZ contact • Several challenges have been financed (e.g. by RIBH MENA and the African Leadership Academy). The chal- Further information on Yomken is available at: lenge financed by RIBH MENA aims to develop a mobile https://www.yomken.com/ application that provides, for example, geolocation for For more information on this work, planted trees, calendar tracking and notifications for contact Maren Breuer (maren.breuer@giz.de) users about the planted trees and it should be based on gamification principles. • To find out more please visit the crowd-solving platform in Tunisia: www.yomken.com Partners and networks Inclusive Business Sector Dialogue: Peer-to-peer Networking for Stakeholders of one Sector | Green and Inclusive Business Toolbox | 27 Inclusive Business Sector Dialogue: Peer-to-peer Networking for Stake- holders of one Sector The key challenge for inclusive business (IB) is developing commercially viable and socially impactful business models. While business model challenges differ between sectors and regions, within a specific sector and region, commonalities outweigh the differences. The Inclusive Business Sector Dialogue builds on these commonalities. The IB Sector Dialogue is a proven peer-learning format for businesses with IB models – enabling exchange and fostering learning. Each IB Sector Dialogue is designed individually, based on the regional or national context. The sectoral and regional focus allows participating business representatives to analyse and discuss context-specific challenges and opportunities with their peers and to enhance their business models with the support of experts. To date, the tool has been replicated to fit a range of sectors, including housing, fast-moving consumer goods, health and energy. The format has been used in various countries such as Argentina, Nigeria, Egypt, Tunisia and Ghana. IB SECTOR DIALOGUE ON AFFORDABLE The peer-learning workshop of the IB Sector Dialogue HOUSING IN GHANA in 2016 identified best practices and business opportu- nities for the affordable housing market in Ghana. As a Overview basis for this IB Sector Dialogue, IBAN commissioned a market brief about affordable housing. As an outcome Type Partners and Networks of the event, three participants of the IB Sector Dia- Complexity Low logue founded the Affordable Housing Network (AHN) Expertise High for West Africa in order to advance affordable housing Cost €€ solutions in the region. Following upon the success of Time frame 7 months the first Sector Dialogue (2016) which lead to the launch Sustainability dimension Green and inclusive of the network, the objectives of the second housing dialogue (2017) were to consolidate the results from the Phases Adopt Scale previous year and to explore new and creative think- ing in the housing industry. For example, a key topic of Tool in brief the IB Sector Dialogue 2017 was the role of member- A Sector Dialogue is based on three pillars: a practitioner ship-based organisations in providing financial solutions guide, a one-day peer-learning workshop, and a one-day for affordable housing. Leading up to the second Sector networking event. The example of the IB Sector Dialogues Dialogue, IBAN has commissioned an in-depth study on on affordable housing in Ghana is described here in detail this particular challenge. to further illustrate the tool and its functional logic. In Ghana, the supply of housing does not meet the in- creasing demand of the population. According to the Ox- ford Business Group, there is an estimated housing deficit of 1.7 million units. Responding to this staggering number, the Inclusive Business Action Network (IBAN) hosted IB Sector Dialogues on affordable housing in Ghana in June 2016 and May 2017. 28 | Green and Inclusive Business Toolbox | Inclusive Business Sector Dialogue: Peer-to-peer Networking for Stakeholders of one Sector Tool objective Interactive practitioner workshop The objective of IB Sector Dialogues is to enable business- A 1 – 2-day workshop targets business representatives and es to develop, enhance and reflect on sector-specific IB builds on the research findings of the guide and baseline models through peer learning and expert advice. Addi- assessments. Experts report on the business potential and tionally, the format facilitates new connections and part- market access strategies. Jointly, business representatives nerships to foster the implementation and scaling up of IB discuss their experiences and work on their own ideas models. The IB Sector Dialogue on affordable housing in and strategies. These core elements are complemented by Ghana specifically sought to: extensive follow-up activities and an optional site visit to a • inspire participants through existing high-potential best-practice project. projects, both international and local; • encourage businesses to form partnerships with hous- The IB Sector Dialogue on affordable housing in Ghana ing organisations; took place over two days: a networking event and a prac- • elicit creative thinking about housing solutions; titioner workshop. Both days concluded with networking • provide a platform for businesses to promote their busi- activities. In the run-up to the events, a sector study was ness models. conducted and an international project case and a local design case study were identified. Target group IB Sector Dialogues target business representatives from Day 1 – networking event a specific sector who already do, or intend to, work with Participants of the events were recruited through the low-income communities. The IB Sector Dialogues further contacts of the AHN. More than 70 people attended the target stakeholders that facilitate IB, like incubators, networking event, among them were stakeholders from development institutions or investors. Participants of the different parts of the housing value chain: developers, bank- IB Sector Dialogue on affordable housing in Ghana in- ers, architects, planners, cooperatives, unions and building cluded developers, bankers, architects, planners, building materials researchers. The first session of the day focused on materials researchers, academia, and representatives from the affordable housing model ‘PROBAT’, a model developed construction companies, cooperatives and unions. and presented by LafargeHolcim (a leading international company in the building materials industry) and its local Tool description Ghanaian partner company Hanisa. The second session fo- IB Sector Dialogues pursue three goals: information, peer cused on the presentation of the outcome of a local design learning, and networking. They are based on three pillars: competition on affordable housing in Ghana. Practitioner guide Day 2 – practitioner workshop The basis for each workshop is a practitioners’ guide. The On the second day, the workshop was attended by over 30 guide provides an overview of the market and summarises selected practitioners who had already participated in the current research within the sector. It presents case studies networking event the previous day. Based on the sector of successful business models and documents their expe- studies ‘Affordable housing in Ghana (2016)’ and ‘Mem- rience. Alternative research material or relevant studies bership-based organisations and the supply of affordable can also be used, instead of a practitioners’ guide. housing in Ghana’. In the afternoon, in a peer-learning ses- sion, participants discussed model solutions for affordable Networking event housing in Ghana, taking into account the role of mem- The awareness-raising and networking event is aimed at bership-based organisations. Following the moderated representatives of business, politics, academia and civil sessions, both days provided ample time for informal society. The purpose of the event is to start discussions on networking. opportunities, challenges and success factors for inclusive business in a specific sector and region. Inclusive Business Sector Dialogue: Peer-to-peer Networking for Stakeholders of one Sector | Green and Inclusive Business Toolbox | 29 Project set-up Costs IBAN initiated and hosted the IB Sector Dialogue on The cost items for one IB Sector Dialogue include the affordable housing in collaboration with AHN. The event following items: was organised in cooperation with a Ghanaian consultan- cy that specialises in planning and urban development. Items Local consultants from AHN conducted the sector study as well as the background study that provided insights on Local consultant (preparation, implementation current practices and prospects for voluntary member- and documentation of the events) (10 person-days) ship-based organisations to deliver affordable housing. GIZ staff overseeing the process (10 person-days) Preparation of study (26 person-days) Tasks and timeline Venue and catering for a 70-person networking event Work plan tasks M1 M2 M3 M4 M5 M6 M7 and a 30-person workshop (in months) Results and legacy Framework The following results were achieved in the IB Sector development Dialogues on affordable housing: • The IB Sector Dialogue on affordable housing 2016 led to Identification the launch of the AHN. The network was established with of facilitators a strong passion for low-income housing and upgrading slums. It advocates and facilitates the provision of affordable housing at all levels. At the 2016 United Research and Nations Conference on Housing and Sustainable Urban writing of study Development (Habitat III), the AHN hosted a panel discussion on Africa’s housing issues. Marketing and • As a result of the Sector Dialogues, LafargeHolcim en- invitation of tered a partnership agreement with the Biogas Associ- participants ation of Ghana and other participants from the private Workshop and sector committed to work closely together with stake- networking holders from the finance sector and academia. event • The event media partner Citi 97.3fm became a key stake- holder and has embarked on a sensitisation campaign Evaluation aiming at creating awareness among the public at large on affordable housing issues and fostering a sense of private and public sector responsibility. Citi 97.3fm held Follow-up a forum that was broadcast live on radio, extending the steps discussions on the issue of affordable housing. These post-Dialogue initiatives are converging well towards the proposed policy roundtable that would bring the private partners to strategise with government on delivering affordable housing. 30 | Green and Inclusive Business Toolbox | Inclusive Business Sector Dialogue: Peer-to-peer Networking for Stakeholders of one Sector Success factors and lessons learned Several success factors have been identified in the con- duct of IB Sector Dialogues in recent years: • In the preparation phase, special emphasis should be put on the selection of corporate participants and other stakeholders for the workshop. For that purpose, it is beneficial to have a consultant on the ground with good knowledge of the local actors, who can approach targeted companies and relevant partners directly and in person. • Effective follow-up activities are key for sustainable workshop results to have a long-lasting impact. Like the preparation phase, the follow-up process should be supervised and organised by local experts. To • The organisers inquired about participants’ expec- avoid losing the momentum created at the workshop, tations in the online invitation. This helped them to results and clear objectives, including long-term goals identify key issues and needs of the participants and and next steps, should be recorded at the end of the plan the event accordingly. workshop and form the basis of the follow-up process. The follow-up can easily stretch over a period of six months in order to accompany participants until they Further information have established a presence in the IB ecosystem. and GIZ contact The report of the Affordable Housing Sector Dialogue Specific lessons learned from the IB Sector Dialogue on is available at: http://www.inclusivebusinesshub. affordable housing in Ghana: org/micro-site/inclusive-business-action-network/ • It is important not to overload the agenda. Both hous- events-formats/creating-solutions-affordable-hous- ing Dialogues resulting in meaningful new networks ing-west-africa-innovative-partnerships/ and partnerships left time for networking between participants during the event. Further information on the tool and a short video is • Participants indicated a preference for case studies available at: http://www.inclusivebusinesshub.org/ and project examples that relate to the local context. micro-site/inclusive-business-action-network/inclu- Participants in Ghana considered an international sive-business-sector-dialogues/ case study from Chile as being too unrelated, while The practitioner guides from the Inclusive Business an international case study from Ivory Coast was Sector Dialogue Series are available at: http://www. well received, because the business environment in inclusivebusinesshub.org/micro-site/inclusive-busi- Ivory Coast is comparable to that in Ghana and a local ness-action-network/knowledge/publications/ Ghanaian contractor was involved. • While the IB Sector Dialogues target inclusive busi- The video series on IBAN’s IB Sector Dialogues in nesses, it has proven valuable to include selected Nigeria, Ghana and Egypt is available at: https://www. stakeholders, for example from the finance and busi- youtube.com/playlist?list=PL45l4Jhdlv-GSBAzm- ness development sectors, in order to gather diverse MapAnfFvuswFdLLR and complementary skills and perspectives. In Ghana, For more information on this work, contact IBAN: practitioners had a lively debate with delegates from Susanne Friedrich, Peer Learning Manager the financial sector on the topic of financing affordable susanne.friedrich@giz.de housing solutions. Competition for Inclusive Business | Green and Inclusive Business Toolbox | 31 Competition for Inclusive Business An increasing number of companies, large and small, from developing and emerging economies, have started to develop IB models in a variety of sectors and countries. In so doing, they have demonstrated the positive social and commercial value of targeting low-income consumers on the demand side and producers, employees and distributors on the supply side. While there are successful examples of commercially viable, scalable IB models generating social impacts, many struggle when it comes to scaling up. Furthermore, there is a recognised need to expand efforts to encourage the adoption of IB models from the current focus on small start-ups with high growth potential to include more established domestic companies in developing countries. As such, there is a clear value in sharing examples from these kinds of enterprises and the lessons they have learned, including workable solutions and replicable models to overcome challenges in specific sectors. Holding an inclusive busi- ness competition provides an opportunity to identify successful examples in more established inclusive busi- nesses and to engage in knowledge sharing for replication. G20 CHALLENGE ON INCLUSIVE BUSINESS sustainability, development results, innovation, potential INNOVATION for growth, and social and environmental sustainability. The 15 winners were announced in June 2012 at the G20 Overview Summit in Los Cabos, Mexico, after which they received support in the form of a series of regional peer-learning Type Partners and Networks workshops and showcase events. Complexity Medium Expertise Medium Tool objectives Cost €€ The objectives of the G20 Inclusive Business Innovation Time frame 6 months Challenge were to: Sustainability dimension Green and inclusive • accelerate the spread of commercially viable IB models that expand opportunity and access for people living at Phases Adopt Scale the base of the pyramid in developing countries; • raise public sector awareness about the potential of Tool in brief IB models as way to contribute to inclusive economic The G20 Challenge on Inclusive Business Innovation was growth; run in 2011–12 by the G20 and International Finance • identify and showcase good examples of commercially Corporation (IFC), with funding from the German Federal viable and replicable IB models and to encourage their Ministry for Economic Cooperation (BMZ) and imple- further uptake and dissemination; mentation support from GIZ. The online competition and • inspire entrepreneurs and companies to develop or subsequent workshop series aimed to recognise business- adopt IB models and replicate them in their home es from developing and emerging economies that have markets; already succeeded in developing innovative, scalable and • foster peer-to-peer exchange among practitioners. financially sustainable inclusive business (IB) models. By providing this global platform, it aimed to encourage all Target group businesses to learn from the leading lights in the growing The primary target groups for the competition were entre- IB sector and also to motivate these IB sector leaders to preneurs and companies with established IB models that link up with other inclusive business actors. Moreover, had already achieved demonstrable results within BoP the competition aimed to showcase the development markets. The secondary target groups were members of and commercial impact potential of IB models. An ex- the public and intermediaries interested in learning more pert panel selected the winners based on their financial about IB. 32 | Green and Inclusive Business Toolbox | Competition for Inclusive Business Tool description G20 Challenge eligibility criteria The G20 Challenge on Inclusive Business Innovation was a global competition set up to recognise businesses with in- The G20 Challenge on Inclusive Business Innovation novative, scalable, replicable and commercially viable ways was open to businesses and subsidiaries that met the of reaching low-income people in developing countries. following eligibility criteria: The competition was launched in November 2011 during • Headquartered or have a substantial part of their operations in a low- or middle-income country; the G20 Summit in Cannes, France, and was marketed to • For-profit entity; potential entrants through a range of media channels. Busi- • Demonstrate financial sustainability: already commer- nesses and subsidiaries that met the criteria set out in Box 3 cially viable or have evidence of commercial financing were eligible to apply. (equity or debt) and of being up to date with all com- mercial debt repayments; Applicants were requested to submit a pre-application and • Use an innovative business model that includes indi- complete an online survey at www.g20challenge.com, a viduals at the BoP as suppliers, distributors, retailers, or portal developed expressly for the competition. Following customers or includes value chain financing to the BoP; a review of the pre-applications, those businesses meeting • Are not a microfinance institution, private equity fund, the Challenge’s eligibility criteria were then provided with or a deposit taking institution; access to the full application form, which they were able to • Were founded before June 30, 2009, for a minimum complete and submit online. Applications were accepted of 3 years of operation by the announcement of the winners in June 2012; over a three-month period from 1 December 2011 to 29 • Operate outside the extractives industry (oil, gas, mining); February 2012. In the full application form, applicants were • Are not involved in the production or trade of alcohol, asked to respond to 17 questions or information requests, tobacco, gambling, or weapons. which included: • briefly describing their firm’s IB model and how this model Source: www.g20challenge.com/about-the-challenge is a unique way to engage with individuals at the BoP; • clarifying how the innovative aspects of their IB model create a competitive advantage for their firm; Following the Summit and the announcement of the • estimating the extent to which their firm ‘reaches’ the competition winners, Germany and Saudi Arabia, in their BoP — i.e. how many low-income people in their value role as co-facilitators of the G20 Development Plan’s Private chain benefit from their inclusive business model. Investment and Job Creation pillar, launched the G20 Inclusive Business Workshop series. The objective of the A total of 291 companies from 72 countries applied, of workshops was to promote the dissemination of IB models which 167 fulfilled the specified eligibility requirements. across regions by showcasing successful examples, devel- The IFC and Deutsche Investitions- und Entwicklungs- oping solutions to IB growth challenges and encouraging gesellschaft (DEG) selected a shortlist of 30 finalists and new partnerships. The first workshop took place in Berlin then a high-level panel of 12 judges selected the 15 winners. in September 2012 and the following year three regional The judges represented a range of institutions and sectors, workshops were delivered in Asia, Latin America and Africa including the public and private sectors and the develop- respectively. The G20 competition winners were invited to ment finance institutions. The winners were selected based attend each workshop. on their financial sustainability, development results, inno- vation, potential for growth, and social and environmental The Berlin workshop, held in September 2012, brought to- sustainability. An awards ceremony was held for the 15 gether around 100 participants from the public and private winning companies at the 2012 G20 Summit in Mexico. The sectors as well as citizen stakeholders. The first day served results from the initial survey completed by competition as a business-to-business (B2B) day, which particularly fo- entrants have subsequently been used to inform a number cused on promoting B2B exchange between the Challenge of publications. competition winners and other inclusive and interna- Competition for Inclusive Business | Green and Inclusive Business Toolbox | 33 on key issues related to global economic stability. Since the German Federal Ministry for Economic Cooperation tional businesses. A networking reception and gala dinner and Development (BMZ) was at that time responsible for concluded the first day. The second day started with two co-facilitating the G20 Development Plan’s pillar on Private plenary discussions: one on how to create a business envi- Investment and Job Creation, BMZ took a coordinating ronment conducive to IB and the other on ways to support role in developing the Challenge. It was supported by GIZ’s IB models in scaling and replicating their models. In the sector project ‘Sustainable Economic Policy and Private afternoon, winners discussed their individual challenges Sector Development’ which played a key role in organising with other participants, gaining insights from and exploring the workshops. collaboration opportunities with other participants. The G20 Inclusive Business Innovation Challenge was fi- The first regional G20 IB Workshop was held in April 2013 nanced by IFC and BMZ, and was implemented on behalf of in Mumbai, India, and coincided with the Sankalp Uncon- IFC by a strategic advisory firm. The sector project ‘Innova- vention Summit, a leading platform for social enterprise in tive Approaches for Private Sector Development’ developed, the region. Focusing on the topic of Scaling Impact Through on behalf of BMZ, the IB Innovation Challenge concept Innovation, the workshop brought together approximately and advised BMZ during its implementation. The regional 70 participants to explore successful strategies for fostering workshops were organised with additional financial sup- innovation within inclusive business models. port from the United Arab Emirates and Siemens Stiftung (Foundation) and were implemented by the sector project The Latin American regional workshop was held in June ‘Innovative Approaches for Private Sector Development’. 2013 in Medellín, Colombia, as a side event to the BASE forum hosted by the Inter-American Development Bank. Tasks and timeline Approximately 80 participants came together to discuss the The tasks and timelines for implementing the G20 Inclu- theme of Scaling Up Finance for the Base of the Pyramid, sive Business Innovation Challenge online competition exploring successful financing solutions that enable low- was approximately as follows: income people to be included in the value chain and thus support the development of IB models. Work plan tasks M1 M2 M3 M4 M5 M6 (in months) The final workshop in the series was held in Nairobi in October 2013 and focused on Africa. It took place in the same week as Siemens Stiftung’s Empowering People Scoping and Awards Ceremony, which ensured synergies between the planning two events could be developed. The workshop brought together approximately 150 multi-stakeholder participants Marketing of the and focused on the topic of Scale, Replicate, Accelerate: campaign Growing Inclusive Business in Africa. Its objective was to foster the spread of IB in Africa by showcasing successful examples, developing solutions to their growth challenges Application and encouraging new business relationships. screening and selection of Project set-up winners The G20 Inclusive Business Innovation Challenge was an initiative of the G20, a forum for international economic Final event – development that promotes open and constructive discus- announcement of sion between industrial and emerging market countries winners 34 | Green and Inclusive Business Toolbox | Competition for Inclusive Business Costs Results and legacy While the G20 Challenge proved costly due to its inter- The following results of the IB Innovation Challenge have national scope, the tool is actually quite cheap to deliver been identified: when it is replicated at the national or regional level. The • Participants stated that the recognition they have table below sets out the different items to consider when received since winning the G20 Challenge has boosted estimating costs. Note that items marked with an aster- their access to finance, talented staff, partners and net- isk are optional and depend on how the competition is works, both abroad and in their home country. designed. Adding workshops or a coaching session for the • Challenge winners also stated that, given IB is a new and competition winners increases the costs accordingly. rapidly evolving business approach, the direct peer-to- peer learning was of particular value. In workshops fa- Items cilitated by a professional, participants learned directly from one another and from selected experts, including Consultancy services for the competition: 30 person-days business consultants and keynote speakers. Venue for the awards ceremony • Insights and learning from the competition fed into the development of the Inclusive Business Action Network Catering for the awards ceremony (IBAN), which was set up in 2014 and initially funded *Prize money by BMZ and implemented by GIZ. The Network aims *IT costs for an online platform to leverage partnerships with other facilitators (such as development partners, capacity-development provid- *Consultancy services for a follow-up workshop or ers and foundations) to foster knowledge sharing and coaching period learning among companies with IB models, and also *Venue for a follow-up workshop networking and partnership-building opportunities. *Catering for a follow-up workshop Success factors and lessons learned Several key success factors and lessons learned from the project should be highlighted: • Having the IFC as implementation partner for the The winners of the G20 Inclusive Business competition was invaluable, as it ensured proper due Innovation Challenge diligence for the project partners. • The effective marketing of the IB Innovation Challenge Agrofinanzas (Mexico) through international media channels was critical to Apollo Hospitals Group (India) ensure the quality of the applicants, which determined Bakhresa Grain Milling (Malawi) Brilla, a programme launched by Promigas (Colombia) the success of the competition. Corporación Universitaria Minuto de Dios (Colombia) • The competition prize does not have to be monetary — Ecofiltro (Guatemala) companies equally value the rewards of recognition and Engro Foods Ltd (Pakistan) the possibility to meet and exchange with peers. Jain Irrigation Systems Ltd (India) • Asking competition applicants to complete a survey at Manila Water Company (the Philippines) the same time as their application was useful for gener- Millicom (Luxembourg) ating data and insights on IB that could then be used for Reybanpac Unidad de Lácteos (Ecuador) other purposes. Sustainable Harvest Coffee Importers (United States) • The competition was useful for raising awareness about Tenda Atacado Ltda (Brazil) the potential of IB models among both businesses and VINTE Viviendas Integrales (Mexico) the general public. Waterlife India Pvt Ltd (India) Source: http://www.g20challenge.com/winners/ Competition for Inclusive Business | Green and Inclusive Business Toolbox | 35 When replicating this format, whether on a local, regional or global level, the following issues should be taken into account: • In order to attract high-level participants from both the political and economic spheres and to save on travel and venue costs, it can be useful to piggyback the awards ceremony or workshop on an existing event in which GreenOvation – Hackathon for Green Mobile Apps lots of actors involved in inclusive business are already There are different types of ideas competitions that can participating. be run for businesses; they can vary with regards to the • It is important to include high-level individuals who overarching topic, the geographical scope, the target are strongly committed to inclusive business in the group and the means of implementation. An example selection panel, as these judges can also be employed as for a competition focusing on one specific topic and workshop speakers and their status will reinforce the using an innovative format, known as a hackathon, is image of the competition as a whole. GreenOvation. Launched by the The Philippine–German Promotion of Green Economic Development (ProGED), GreenOvation was an innovative green learning event and competition activity which sought to promote innovative mobile apps that contribute to environmen- Further information tal friendliness. GreenOvation took place in the second half of 2015 in Manila. It comprised three steps: (1) an and GIZ contact ICT-based campaign to mobilise sponsors, mentors The website for the G20 Inclusive Business Innovation and participants; (2) three competition and learning Challenge is available at: www.g20challenge.com rounds; and (3) a follow-up package for the winner. GreenOvation solicited local sponsors from government The brochure for the IB Innovation Challenge can be and nongovernmental organisations and the private downloaded at: www.g20challenge.com/wp-content/ sector. On the participant side, it mainly targeted college uploads/2012/02/G20-Challenge-on-Inclusive-Busi- students, professionals, entrepreneurs, overseas Filipino ness-Innovation.pdf workers and government employees. After a one-month Workshop reports and programmes can be download- campaign, eight sponsors were mobilised and a total of ed at: www.g20challenge.com/about-the-workshops 33 teams submitted their ideas. Three judges selected 23 entries to join the competition based on their functio- The IFC issued a Policy Note on the Business Envi- ning, creativity and technical feasibility, as well as impact ronment for Inclusive Business Models that analyses and market potential. Each of the following elimination survey responses from the G20 Challenge applicants on rounds had a specific theme, agenda, learning aim and the regulatory obstacles they face in their businesses. pitching mode. Eventually, the app OneWatt won the The policy note then summarises how public policy competition. OneWatt picks out the most efficient can support IB models and offers recommendations on energy source in terms of cost and stability 24/7. With how governments, development finance institutions its learning algorithm, OneWatt promises a monthly electricity bill reduced by up to 40%. The hackathon was and donors can support companies with inclusive busi- a great learning experience for all actors involved. The ness models.12 The policy note is available at: www. participating teams received valuable feedback on how g20challenge.com/wp-content/uploads/2012/06/ to improve their apps; furthermore, they learned how to G20_Challenge_on_Inclusive_Business_Innovation_ pitch to compete for technical assistance and funding. policy_note.pdf The MSMEs were introduced to green applications and For further information on this tool, contact the sector the sponsors found interesting new start-up clients. project ‘Sustainable Economic Policy and Private Sector For more information please visit: www.greeneconomy.ph Development’. 12 IFC, 2012. 36 | Green and Inclusive Business Toolbox | Development Partnerships with the Private Sector for Green and Inclusive Business Development Partnerships with the Private Sector for Green and Inclusive Business Weak local economic cycles are among the most common problems faced by developing and emerging economies. In many of them, micro, small and medium-sized enterprises (MSMEs) account for a large share of the economic performance. However, the vast majority suffer from a lack of know-how and limited access to information, services and markets which prevents them from growing and becoming commercially successful. GIZ engages in Development Partnerships with the Private Sector (DPP), which are collaboration projects between GIZ pro- grammes and local enterprises. The partnering enterprises are at an advanced growth stage, already having a set of basic capacities, which allows them to serve as ‘lead firms’. GIZ provides capacity development measures and supports access to services by leveraging linkages between stakeholders in the supply chains. Hence, the DPPs with lead firms allow GIZ to multiply the learning effect and reach a large number of MSMEs. DEVELOPMENT PARTNERSHIP SUPPORTING Tool objective LOCAL SMALLHOLDERS IN MOZAMBIQUE The objectives of DPPs in Mozambique are twofold: • To develop business skills and improve the livelihood Overview of smallholders and small producers through technical and organisational training. Type Partners and Networks • To support the integration of Companhia de Vandu- Complexity Medium zi’s supply chain, improving the competitiveness (e.g. Expertise Medium revenue increase, higher production, reduction of unit Cost €€ cost, extension of the product line and access to new Time frame 12 months markets) of the lead firm. Sustainability dimension Green and inclusive Target group Phases Start Adopt Scale The target group is MSMEs in rural areas that have the potential and the interest to develop or enhance Inclusive Tool in brief Business Models. In Mozambique, the target group can be In January 2017, the Programme for Sustainable Economic divided into lead firms as direct DPP partners and micro- Development in Mozambique (ProEcon) set up a DPP with enterprises, such as small commercial farmers, the medium-sized enterprise Companhia de Vanduzi, a local associations, cooperatives, etc. that benefit from a fruit and vegetable production and trade firm. To expand sustainable inclusion into the supply chain. their business Companhia de Vanduzi sources fine beans, baby corn and chilies from local smallholders, processes and Tool description packages them and exports them to retailers in Great Britain. The programme’s DPP with Companhia de Vanduzi started in January 2017. As a medium-sized enterprise, it was GIZ supported Companhia de Vanduzi’s inclusive business already fairly well connected to international partners model in the area of capacity development. GIZ conducted in Europe. The company’s main goal is to maintain and training on basic business management for smallholders increase its export activities to Europe, which requires it and organisational development for their associations, also to meet comparatively high quality standards for a larger increasing the capacities of Companhia de Vanduzi’s tech- number of products. Therefore, it was necessary to train nicians to improve the embedded services they provide to additional smallholders to enable them to increase product the local farmers. Thus Companhia de Vanduzi serves as lead quality and quantity. firm when building knowledge and skills among smallhold- ers in rural Mozambique. Development Partnerships with the Private Sector for Green and Inclusive Business | Green and Inclusive Business Toolbox | 37 Companhia de Vanduzi has an extension team to advise As many of the supplying farmers are women, Companhia smallholders on basic agricultural practices. As part of the de Vanduzi explicitly requested training on the topic of DPP, GIZ provided training on business and organisation- gender and the inclusion of women in economic activities. al skills for smallholders. In addition, new topics such as Henceforth, this topic was also included in GIZ training information and communication technology (e.g. for more sessions for the company’s staff. efficient extension services) or renewable energies (e.g. for local storage facilities) are being introduced to support the Project set-up upscaling of Companhia de Vanduzi´s contract farming First, ProEcon and Companhia de Vanduzi came together scheme providing local smallholders with valuable techni- in an informal meeting in which they exchanged their cal assistance and skills. interests and ideas for a possible collaboration. Afterwards, ProEcon carried out a standardised screening process to Technical training was needed because, commonly, tech- assess whether the company respects GIZ key values such as niques applied by farmers in rural areas are outdated and human rights, labour standards, environmental protection, inefficient. In the technical training they are being intro- anti-corruption, etc. To ensure successful cooperation, the duced to the best agricultural practices, which will enable screening process also considers business-related aspects them to improve their productivity and the product quality. like professionalism and growth ambitions. Once the Additionally, training helps to raise the farmers’ aware- company passed the screening process, ProEcon drafted a ness of basic market mechanisms and the benefits of high cooperation proposal, setting out the basic framework of product quality. The organisational training drew upon the the partnership. Once both parties agreed on the proposal, Farmer Business School approach, which aims at develop- a more detailed operational plan, including the division of ing the farmers’ economic skills and their self-perception tasks, was prepared and a cost-sharing budget assigned. as business owners. With this knowledge at hand, farmers Finally, the planned activities are being implemented should be able to manage their resources more efficiently according to the operational plan. Throughout the collab- and create added value for their harvest. oration, ProEcon monitors and assesses the results to make sure that all activities are on the right track and adjusts if Yet another challenge Companhia de Vanduzi encountered necessary. in its relationships with farmers was poor communication and a lack of trust among farmers towards Companhia de Vanduzi’s trainers. GIZ training sessions responded to this problem by introducing appropriate, professional, and respectful means of communication which paved the way for a more fluent flow of information and built mutual trust between trainers and farmers. 38 | Green and Inclusive Business Toolbox | Development Partnerships with the Private Sector for Green and Inclusive Business Tasks and timeline Work plan tasks (in months) M M M M M M 1–2 3-4 5-6 7-8 9-10 11-12 Task 1 Dialogue with potential DPP partner Task 2 Planning of the DPP project Task 3 DPP project implementation Task 4 Monitoring results with DPP partners Task 5 Results assessment and upscaling of the DPP Costs In DPPs, GIZ programmes and partnering businesses share costs. Depending on the scope, costs can differ signifi- cantly. They are also highly dependent on the partners’ budgetary availability, as well as on demands and expected results. Items GIZ personnel for DPP management: coordination and advisory, 30–100 person-days DPP activities (cost-sharing with private partner); consultancies, trainings, information material, cross- cutting issues, etc. DPP monitoring: meetings and communication for implementation analysis and exchange for adjustments in implementation Additional costs: logistics (e.g. car and driver), related office costs, etc. Development Partnerships with the Private Sector for Green and Inclusive Business | Green and Inclusive Business Toolbox | 39 Results and legacy • The cooperation between Companhia de Vanduzi and The following results were achieved by the DPP: GIZ drew GIZ’s attention to other challenges such as the • Some 85 local smallholders, of whom 30 are female, need for (1) ICT tools to enable more efficient commu- were trained and improved their agricultural practices. nication between the lead firm and the supplying small- • Companhia de Vanduzi more than doubled its local pro- holders and (2) technical advice on cooling systems duction volume and thus fostered its growth as planned. which were to be installed in new supply areas. • In the course of the growth phase Companhia de • Building mutual trust between GIZ trainers and the Vanduzi created additional 15 jobs in production and partnering company is essential and can take time; processing. hence it should not be underestimated. Success factors and lessons learned The following aspects contributed to the success of the partnership: DPP in Malawi • GIZ was active in the region before the partnership GIZ Malawi is supporting an inclusive business pilot in emerged. ProEcon benefited from the existing connec- the tourism value chain that assists lodge owners to tion and reputation of improving farmers’ livelihoods in practice responsible tourism through business linkages the region. with the local communities, while also working directly • The aspect of economic inclusion of women was not with the host communities to ensure that both supply part of the agreement as initially planned; instead it was and demand for specific, high-quality goods and services added after Companhia de Vanduzi explicitly requested can be met. In partnership with Nkhotakota Pottery it. Being able to adapt in this way to local circumstances Lodge and Nkhandwe Village, GIZ Malawi identified stimulated additional development objectives and is the opportunity to source and market niche products therefore recommended. through the networks of the lodges. The lodges wish to engage local communities in the steady production and supply of high-quality products that can be marketed to Further information tourists. This provides income and employment oppor- and GIZ contact tunities in the vicinity of the lodge. The lodge, in turn, provides a sure and stable market for local communities Further information on DPPs is available at: and therefore creates an incentive for more smallholders https://www.giz.de/en/worldwide/18718.html to supply local products to these markets. The focus thus Further information on ProEcon is available at: far, based on market opportunities identified and skills available, has been on horticulture, jam-making and bee- https://www.deutsche-digitale-bibliothek.de/binary/ keeping, but will come to include activities such as home QLYLHFB2WMYQDI6UT6NCL4B3B7JYENPU/full/1.pdf stays, hiking and water sports. The example of jam pro- Further information on DPPs in Mozambique can be duction, most notably baobab jam, has showcased the found in the AHK/GIZ study available at: benefits of partnership to the lodge owners and to the https://www.giz.de/en/downloads/giz2016-pt-PME community. Various batches of jam have already been -in-mocambique-situacao-e-desafios.pdf produced and marketed, and the jam-making group has already made a profit! For further information contact: Doris Becker, Head of Programme (doris.becker@giz.de) For more information please contact Florian Bernhardt or Thomas Jaeschke (thomas.jaeschke@giz.de) (florian.bernhardt@giz.de) Markets Digital Marketing Platform for Inclusive Business | Green and Inclusive Business Toolbox | 41 Digital Marketing Platform for Inclusive Business Marketing presents a major challenge for small locally run businesses and this is especially true for entrepre- neurs among people living at the economic base of the pyramid (BoP). When BoP entrepreneurs want to reach customers that do not live in the same area, marketing is even more difficult. Tourism is a sector where this challenge becomes very apparent. On the one hand, rural areas are rich in tourism potential and can meet the needs of travellers, who increasingly look for local, nature-based, authentic experiences. On the other hand, it is difficult for local tour guides to make their offer known to these travellers. A digital marketing platform that gathers the offers from small locally run businesses and makes them known to national and international tourists can be a solution to this problem. Consequently, the Responsible and Inclusive Business Hub (RIBH) in the Southern African Development Cooperation (SADC) supported the development of Open Africa’s online marketing tool. OPEN AFRICA’S ONLINE MARKETING TOOL Overview Type Markets Complexity Medium Expertise Medium Cost € Time frame 8 months Sustainability dimension Green Phases Start Adopt Tool in brief process of sourcing new, emerging and community-based In 2015, Open Africa, a local social enterprise, and the tourism businesses and experiences for their tours and RIBH SADC hosted a networking session with tour opera- itineraries and allows them to give constructive feedback tors to explore the challenges faced when trying to include on an ongoing basis. community-based tourism enterprises in their itineraries. This resulted in the development of an online tool, which To be able to incorporate smaller businesses into their evaluates the community-owned tourism businesses schedules, the businesses need to assure the tour operators against certain criteria. Furthermore, tour operators and on the quality of their product and provide more informa- the local businesses can use the platform to communicate tion on the setting of the business. Therefore, information with each other. It also contains tips on how business- such as insurance coverage, standard tour rates, accom- es can improve their services. Tour operators can then modation establishment or access to internet, etc., needed promote those businesses and provide more customers in to be formalised. even more remote areas. Target group Tool objective The project targets 16 existing self-drive travel companies The platform aims to promote and support rurally based in South Africa in the Open Africa network (in total there micro, small and medium-sized enterprises (MSMEs) are 58 routes in six countries). The online tool reaches out (enterprises participating in Open Africa’s tourism routes) to 516 MSMEs, in which about 5,000 people are employed. and youth, increasing their income and creating jobs by Open Africa sets rurally based routes and serves eight boosting rural tourism. It assists tour operators in the different provinces. 42 | Green and Inclusive Business Toolbox | Digital Marketing Platform for Inclusive Business Tool description see their scorecards – each category has a rating system With one focus area being tourism, RIBH SADC collabo- and asks for the justification of that scoring. Furthermore, rated with Open Africa to create opportunities and bene- businesses have access to cost-efficient tools, which help fits for communities to get involved in the tourism sector. them to improve the services they provide. All comments Open Africa is a local social enterprise with 50% donor made within the tool are visible to other tour operators funding and 50% self-produced capital. It has established and the product owners have the opportunity to respond a network of tourism routes mapping community owned and, if applicable, address the challenges. The tool thus businesses in rural areas in Southern Africa. One of Open also enables easier and more efficient communication Africa’s aims is to support rural economic development between the tour operators and the business owners. The and help MSMEs grow. information is not open to the public. Only registered tour operators and assessed businesses can access the informa- Together with RIBH SADC, Open Africa developed the tion, so it provides a safe space to exchange experience. idea of an online tool that allows tour operators to log in Furthermore, development is ongoing on the learning to a system that only shows businesses assessed by Open toolkit for the enhancement of services. Africa. The online tool was then developed by a consultant and launched in Durban in April 2016. Five Open Africa By using the data, Open Africa started to promote and route mentors assisted with the development of the tools steer the businesses into markets they would not other- and gave tips to enhance the services. The mentors bring wise have had access to. With 58 routes established in six vast and specific experience on fair trade tourism, guiding countries in Southern Africa and 2,500 businesses within services and marketing in the project. the network, other new micro-enterprise market poten- tial is beginning to develop. Through all the marketing The idea of the tool is that route mentors assess the busi- and networking exercises, it was realised that there is a nesses, score them against certain criteria using the online need and an opportunity to increase the links between tool and create an opportunity to discuss any business im- the small businesses and many of the tour operators. The provements. The service providers are able to give feedback market started as a self-drive market, for people who in a closed system within the online tool, where they can wanted to travel at their own pace in their own transport share assessment information that is not open to the public. to explore a particular area, using Open Africa’s routes. Businesses can see their scorecards, respond, and access tools created to help them improve against those criteria. In Project set-up addition, Open Africa could develop additional tools to as- Open Africa and RIBH hosted a networking session with sist small businesses to improve in the assessed areas. There tour operators to explore the challenges faced when is a learning toolkit built into the tool sharing tips. including community-based tourism enterprises in their itineraries and to see how these challenges could be over- The assessment of those businesses reduces potential risks come. A consultant (paid by GIZ) developed the online tool and gives assurance to the tour operators. Businesses can which is now used in the cooperation with Open Africa. Digital Marketing Platform for Inclusive Business | Green and Inclusive Business Toolbox | 43 Tasks and timeline Work plan tasks M1 M2 M3 M4 M5 M6 M7 M8 (in months) Research toolkit needs and conceptualise Develop toolkit content Design and develop online resources, including scoring tool Distribute and organise workshop where feasible Refine and develop scoring and assessment tools Appoint and brief developers Online design and development Product testing Distribute assessment tools to routes and partner tour operators Assess and score enterprises Feedback and refine tools Planning and invitations Launch event 44 | Green and Inclusive Business Toolbox | Digital Marketing Platform for Inclusive Business Costs • Open Africa also created another partnership with the Items online accommodation portal, Airbnb. They set up a pilot with 20 businesses to determine the feasibility of hosting Tool development consultant (68 person-days) Open Africa’s listed accommodation establishments on Venue and catering for two workshops the Airbnb platform. The aim is to market most of the businesses in the network. This is similar to the Tour 2.0 Venue and catering for launch event partnership, which will add an additional marketing and sales platform for businesses that participate. The scoring Results and legacy and assessment tool is a good tool to determine whether The tool initiated and facilitated by RIBH SADC has been a business qualifies for Airbnb. well received and has caught the attention of corporate • Open Africa continued to see growth in website traffic. travel management companies, etc.: • More than 72 tour operators have already shown interest • Communities have reported that they are happy with in actively using it and signed up for it. the scoring system and criteria used as rural tourism businesses usually struggle with ‘traditional’ tourism Success factors and lessons learned rating systems that for example also rate the provision • The online toolkit makes reliable information on tour- of TVs in the guest rooms. ism businesses accessible to all registered tour operators, • Open Africa has entered into partnership with the no matter their physical location. Travel Foundation, a British foundation that has been • It helps to extend the product range of tour operators working with UK tour operators for the past 12 years with remote, community owned businesses in a cost- and and has developed a set of Green Business Tools that time-effective way. relate to a number of topics included in the Open • It is easily replicable to other regions and countries. Africa toolkit. Travel Foundation has agreed to allow • The goal is to assess all of the businesses so that they all Open Africa to utilise the relevant tools, and adapt benefit from the use of the platform. UK-specific elements to Southern African conditions. • The management and maintenance of the tool stays with This partnership will allow Open Africa to develop a Open Africa and within its business. much wider range of tools and include more sustain- • Targeted AdWords campaigns helped to drive traffic to able tourism tools for green MSMEs in Southern Africa. specific pages while partnerships with media such as • Open Africa is in the process of signing a commercial Getaway helped drive referrals to the website, increasing partnership agreement with Tour 2.0, a South African our reach. company focusing on marketing cultural-experience packages in rural communities. This partnership pro- vides a direct market link for businesses listed on the Further information platform. and GIZ contact Further information on Open Africa is available at: http://www.openafrica.org/ For more information on this work, contact Maren Breuer (maren.breuer@giz.de) Linking MSMEs to Supply Chains | Green and Inclusive Business Toolbox | 45 Linking MSMEs to Supply Chains In many countries smallholders sell their products through intermediaries, such as local collectors or traders who buy the crops directly at the farm gate. In many cases, these informal purchases are inefficient in that they contribute to low prices for the farmers and good quality is usually not recognised. Farmers often accuse intermediaries of exploitation and opaque pricing methods. At the same time, however, industrial buyers on the demand side are increasingly asking for high value and high quality crops, which are hard to attain because the intermediaries poorly translate the buyers’ needs to the farmers; consequently, the farmers keep produc- ing low-quality crops. That creates a gap in the value chain: on one side are smallholders who lack proper information on buyers’ expected product quality and quantity; on the other, most industrial buyers lack the knowledge and skills on how to work with and assist farmers to meet their demands. The Sustainable Region- al Economic Growth and Investment Programme (SREGIP) in Indonesia aims to fill that gap by bringing both the supply and demand sides together. It builds capacities of farmers and small producers through workshops and training and creates partnerships with companies. DEVELOPING A PRIVATE ENGAGEMENT developed, the programme matched the farmers with the MODEL TO SUPPORT LINKS BETWEEN companies and helped to set up partnership agreements FARMERS AND INDUSTRIAL BUYERS to pave the way for an improved and shorter value chain. This creates a win–win situation for both sides: thanks to the training and partnerships, farmers receive fair prices Overview for their high-quality products, which enables them to Type Markets improve their families’ livelihoods, and the companies can Complexity Medium offer the products tourists are demanding, which supports Expertise Medium Lombok’s image as tourist-friendly holiday destination. Cost €€ Time frame 7 months Tool objective The main objectives are: Sustainability dimension Green and inclusive • improving value addition and inclusion of smallholders Phases Adopt Scale in the tourism value chain through the partnerships and thereby to improve the farmers’ livelihoods and create Tool in brief perspectives for their future; With the aim of fostering the tourism industry on Lom- • encouraging other businesses to adopt the partnership bok, the idea emerged to create partnerships between model in the tourism sector and its supporting indus- smallholders and tourism companies. The initiative start- tries to build a sustainable and inclusive tourism supply ed in 2016 with market research which revealed potential chain. actors for possible partnerships. After needs and capacities were identified, SREGIP organised training sessions and workshops for smallholders in which they were trained in how to improve the quality and the quantity of their products. It also encouraged farmers to build coopera- tives, which allow them to sell their aggregated harvest and thus to offer larger volumes. At the same time, the project initiated dialogues with tourism companies such as hotel chains, restaurants and souvenir shops to deter- mine their needs and requirements so that the farmers’ products could be targeted to the companies’ needs. Once 46 | Green and Inclusive Business Toolbox | Linking MSMEs to Supply Chains Target group The programme then identified and assessed potential The primary target groups of the endeavour are individ- private partners and farmer representative institutions ual smallholders, farmer cooperatives and farmer groups, that were eligible for cooperation. The informal assess- intermediary actors, such as collectors, and buyers from ments were conducted in a series of meetings to observe the local tourism industry, i.e. hotels, restaurants, food the companies’ capacities and their motivation in order to processing companies, etc. ensure that the companies were suitable – not only with regards to resources but also in terms of business ethics Tool description and attitude. Based on the assessment, selected private In 2016, the tourism industry on Lombok started to grow. actors were invited to a joint site visit to the farms to However, infrastructure, quality of human resources and – gain insights into the farmers’ lives and their work; and most critically – availability of high-quality local products to understand in what way they and their families would that met the hospitality industry’s standard remained lim- benefit from a partnership. These visits established the ited. Therefore, SREGIP initiated the support to improve partnerships on a personal level, which was needed to and develop links between smallholders and local tourism build mutual trust and to increase the parties’ commit- companies. ment. As a first step, desk research and observation were con- Cooperation agreements were created between the private ducted to gain information on the farmer profiles, their partners and farmer representatives, facilitated by SREGIP. commodities and capacities. In a subsequent step, farmers All stakeholders jointly developed a comprehensive plan and key stakeholders from the local tourism industry, in- to regulate the roles, responsibilities and contribution cluding tourism companies, and universities were brought of each party, and set up a monitoring system. This was together in a focus group discussion to identify the most also an opportunity for the farmers and the companies critical constraints and needs of farmers on Lombok. This to emphasise once more what interests they had at heart was also a chance for them to learn about each other’s and what capacities they were able and willing to invest perspective and to start a personal exchange. into a partnership. Finally, the planned activities were Linking MSMEs to Supply Chains | Green and Inclusive Business Toolbox | 47 executed. This stage especially focused on the capacity PROJECT SET-UP building of farmers to improve their knowledge and skills The programme oversaw the project and provided input, on post-harvest practices and joint selling through the particularly with regards to capacity-building measures local cooperative. The companies introduced the stand- for the local cooperative. A market development consul- ards and quality specifications and assisted the farmers to tant was assigned to run the private sector engagement comply with the requirements. This was also helpful for process. the farmers to learn about basic market mechanisms and dynamics. Tasks and timeline Work plan tasks M1 M2 M3 M4 M5 M6 M7 (in months) Data collection of the key actors (farmers, cooperatives, suppliers, etc.) Identification of potential company/ industrial buyer Development of engagement model (business model) Site visit and key actors’ gathering (meeting company/buyer with farmer representative/supplier) Drafting and signing of the cooperation agreement Facilitation and monitoring the implementation of engagement plan 48 | Green and Inclusive Business Toolbox | Linking MSMEs to Supply Chains Costs By cooperating with the private sector, the costs of the development process and implementation of the business model can be reduced through a co-sharing mechanism. The market development consultant was assigned to facilitate the process in close coordination with SREGIP in moderating meetings, focus group discussions and gatherings, including the preparation of the cooperation agreements and monitoring implementation. Items Consultancy services: 36 person-days Staff time: 1 full-time staff Due to the fact that the business model was developed as a Venue for meetings and training sessions joint effort involving the private company and farmer rep- Catering for meetings and training sessions resentatives, it leads to an effective implementation in the Travel expenses for meetings and training sessions field with recognisable benefits on both sides, which – in turn – encourage actors to invest in future collaboration. Marketing and communication Some other lessons learned were: • collaboration with a growing company, which intends Results and legacy to expand its supply source, has a good understanding The results of the partnerships are: of the inclusive business initiative and is willing and • increased awareness and understanding of farmers and able to drive the process forward, contributed to an tourism companies for inclusive business models; overall smooth process of engagement and implemen- • development of a partnership model which links farm- tation of the business model; ers and companies based on trust and mutual benefits; • assigning a field facilitator to support the capacity build- • a replicable partnership model that can serve as a guide ing with the farmer representatives (local cooperative) for other private companies in implementing inclusive and monitor the implementation of the business model business models; is advisable; • a stronger local cooperative as the intermediary service • the proper identification of the requirements and the provider through capacity development and facilitation; ‘business scale’ of both the market side (the volumes • added value created through support measures on both required from the industrial buyers) and the supply the supply and demand side; side (the volumes the farmers/producers can supply) is • promotion of local products and sustainable tourism on essential for a successful partnership. Lombok, serving as a role model for other Indonesian tourist destinations. Further information Success factors and lessons learned and GIZ contact The following factors contributed to the success of the More information on the Sustainable Regional Economic farmer linkage model: Growth and Investment Programme is available at: • clear incentives that encouraged the private sector to http://www.sregip.or.id/ engage in the development of the partnership; For more detailed inquiries please contact: • flexibility of the project to face the dynamic changes Lisa Peterskovsky (lisa.peterskovsky@giz.de) within the private sector. Opening New Markets with Low-carbon Products | Green and Inclusive Business Toolbox | 49 Opening New Markets with Low-carbon Products Small and medium-sized businesses can use their climate change mitigation strategy as a marketing tool, as there is a growing market of customers willing to pay a higher price for sustainable products. For small and medium-sized enterprises in developing and emerging countries, producing climate neutral products can help to access global markets that may otherwise be hard to reach due to tough price competition. The agricul- tural sector is heavily impacted by the negative effects of climate change and needs to develop strategies to become more resilient to these adverse effects. However, it has a large potential to produce climate-friendly products. SUPPORTING LOW-CARBON Industrial Strategy of the United Kingdom) in 2016 and COFFEE PRODUCTION IN COSTA RICA will be implemented by 2018. The NSP supports the im- plementation of the first agricultural NAMA in the world, Overview which is currently carried out in Costa Rica by the Minis- Type Markets tries for Environment and Agriculture and the ICAFE. Complexity Medium The training includes three individual modules on calcu- Expertise High lating GHG, water and toxic release footprints, respective- Cost €€ ly. Each module consists of 3 or 4 workshops per coffee Time frame 7 months region on the basic concepts of each footprint, the inter- Sustainability dimension Green national regulatory framework and the necessary tools for performing the GHG, water and toxic release inventories. Phases Adopt Scale The training aims to achieve sustainable, low-carbon cof- fee production and processing, resulting in an innovative Tool in brief low-carbon coffee that gives Costa Rican coffee producers Coffee producers in Costa Rica have identified this chal- access to new markets. lenge of climate change and are developing strategies to produce low-carbon coffee as a means to combine climate Tool objective change mitigation with business development. The GIZ- The objectives of the training are to: led Nationally Appropriate Mitigation Action (NAMA) • support the development of the innovative product Support Project (NSP) Low-Carbon Coffee Costa Rica of a low-carbon coffee in order to create new business supports coffee mills in developing innovative low- perspectives for coffee mills and producers by granting carbon coffee products. To do this, the project has support- access to differentiated international markets; ed coffee mills with trainings on performing greenhouse • train coffee mills and producers on environmentally gas (GHG), water and toxic inventories in their mills, in friendly practices and technologies for farms and mills order to calculate their respective footprints and, subse- and encourage coffee mills and producers to substitute quently, implement sustainable practices and technolo- long-standing and traditional but environmentally un- gies. friendly practices and technologies in order to survive market pressures and climate risk; The training was developed in the scope of the NSP • raise awareness about the impact of climate change on Low-Carbon Coffee Costa Rica by the National Coffee coffee production as well as how coffee production itself Institute (ICAFE) and GIZ on behalf of the NAMA Facil- affects the climate. ity (established by the German Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety, and the Department for Business, Energy and 50 | Green and Inclusive Business Toolbox | Opening New Markets with Low-carbon Products The training’s objective was to provide coffee mills with the necessary knowledge, tools and practices to reduce GHG emissions, water consumption and toxic release dur- ing coffee processing. It consisted of three modules, each covering one of the three topics (carbon, water and toxic footprint). The modules comprised several workshops and follow-up visits on the individual topics and consisted of the following steps: • Training module development. The content for each module was developed, trainers were contracted and coffee mills invited to participate. • Training module delivery. In each of the three modules (GHG emissions, water consumption, toxic release), participants were introduced to the international rules such as INTE 12-01-06:2016 and INTE/ISO 14046:2015 which regulate the measurement of carbon and water footprints, learned the basic concepts of performing the inventories and received follow-up during the individual measurement processes. Each of the modules consisted Target group of several day-long workshops held in six of Costa Rica´s The primary target group for the training was the 50 cof- eight coffee regions over the course of 3 to 4 months. The fee mills participating in the NAMA Café. duration of the entire process including performing all three footprints is estimated to be 3 to 4 years. Secondary target groups consist of coffee farmers and oth- • Follow-up and support during individual measure- er actors along the value chain who obtain higher wages ments. In between and after the workshops, the mills when the final product can be sold at a higher price. The received follow-up visits on behalf of the local consul- project is leading separate activities targeted explicitly at tancy firm that was carrying out the activities. They coffee farmers. were offered support and advice on performing the measurements. Tool description • Delivery of final footprints and subsequent imple- The training was developed in the scope of the Costa mentation of low-carbon, sustainable measures. Each Rican NAMA Café de Costa Rica and its NSP Low-Carbon module was concluded by delivering a final report on Coffee Costa Rica which offers financial and technical sup- the estimated footprints on behalf of the mills. Later port. By 2019, the NAMA Café aims to reach 50 coffee mills on, the mills were offered advisory services on possible that apply at least two low-emission, sustainable practices reduction measures such as installing energy-efficient on their farms and mills. equipment, improving waste-water treatment and reducing biomass consumption. Project set-up The training was conceptualised by GIZ Costa Rica and ICAFE and delivered by a local consultancy firm. GIZ and ICAFE assisted during the entire process. All 50 coffee mills are currently performing GHG inventories; 34 ad- vanced mills are additionally tackling their water foot- print. The toxic footprint is expected to be initiated by all 50 mills in 2018. Training sessions were held at several of the participating mills’ own facilities, reducing venue costs significantly. Opening New Markets with Low-carbon Products | Green and Inclusive Business Toolbox | 51 Tasks and timeline Work plan tasks M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 (in months) Workshop framework development Identification of facilitators Marketing of workshops and selection of participants Delivery of workshops Follow-up during individual performance of GHG emission/ water consumption/toxic release inventories Delivery of final GHG emissi- on/water consumption/toxic release footprints Advisory services on the implementation of GHG emission/water/toxic release reduction measures From the development of the training, choosing con- Costs sultants to carry out the workshops and follow-up visits, The table below sets out the different items to consider to implementing said activities and providing further when estimating costs. advisory services after finishing the carbon/water/toxic footprint measurements, approximately 1 year per module Items is needed, making for a total of 3–4 years for the entire training. Staff time: approx. 20 person-days plus follow-up as needed Consulting services: approx. 40 hours per participating mill per module including workshops and follow-up visits Catering for workshops Travel expenses for follow-up visits on behalf of GIZ 52 | Green and Inclusive Business Toolbox | Opening New Markets with Low-carbon Products Results and legacy Success factors and lessons learned As of July 2017, 50 mills are participating in the NAMA GIZ Costa Rica has identified the following success factors Café. Of those, 34 have already measured their carbon and lessons learned so far: footprint and are performing water inventories, all of • Having a local partner (in this case the ICAFE) support which will be concluded in August 2017. Sixteen new mills the implementation was invaluable, as it gave better joined the initiative as a second group in January 2017 and access to the target group and demonstrated the high will also present their carbon footprints in August 2017. commitment to the subject on behalf of the project The entire process of measuring all three footprints is ex- partners. pected to be completed in 2018 (for the 34 advanced mills) • Follow-up visits by the consultants and GIZ not only and 2019 (for the 16 new mills). served to answer possible questions and doubts from the mills, but also helped to actively encourage mills To date, a total of 19 workshops for carbon footprint and to continue with footprint measurements, and showed eight workshops for water footprint measuring have been ownership and commitment. held. The participating mills have received four follow-up • Kick-off and closing events including the participating visits concerning their carbon footprint measurement and coffee mills proved to be highly important to demon- three regarding their water footprint. strate commitment from the project partners and guide mills through each year’s steps to take. As of July 2017, the following direct results from the • Delivering the training in the mills’ facilities not only carbon footprint workshops can be recorded. Several mills reduced venue costs significantly, but also enabled the have modified their ovens, reducing biomass consump- demonstration of where exactly in the coffee processing tion. Some have improved their electric installations and sustainable practices would be successful. substituted outdated and energy-inefficient equipment. Additionally, new equipment has been acquired by a few GIZ Costa Rica identified the continuous personnel chang- mills in order to improve the compost process of the es in several mills as problematic, as they complicated the organic coffee residues from coffee processing. Lastly, necessary follow-up visits and hindered the development several mills have updated their waste-water treatment of ownership of the topic of carbon and water footprints from using traditional oxidation lagoons to star grass in the mills themselves. sprinkling systems, which lower greenhouse gas emissions significantly. Further information and GIZ contact The presentations held during the trainings can be downloaded from: www.namacafe.org For a video about this project please see: http://www.dw.com/en/climate-friendly-coffee- farming-in-costa-rica/av-39859449 To find out more about this tool, please contact: namacafe@giz.de More information on the NAMA Café de Costa Rica and its NAMA Support Project is available at: www.namacafe.org Capacity Development 54 | Green and Inclusive Business Toolbox | Cross-Border Start-up Programme Cross-Border Start-up Programme With the emergence of competitive start-ups and social enterprises, alternative markets become more and more interesting. Thus an increasing number of green and inclusive businesses (GIB) have also started looking abroad in the search for new markets, ideas, partners and support. This has led to a number of incubators and accelerators conducting cross-border programmes to bring together start-ups with GIB models from various countries. How- ever, to date, there have been no targeted programmes bringing together GIBs from India and Germany to explore cooperation. To this end, GIZ India has designed a 10-day cross-border start-up programme (bootcamp) targeted at impact-driven social enterprises from India and Germany to elaborate and refine their business models and explore possibilities for cooperation and future joint programmes. INDO-GERMAN START-UP BOOTCAMP Tool objectives The objectives of the cross-border start-up programme Overview (bootcamp) were to provide start-ups with: • access to tools that can help build a sustainable IB, e.g. Type Capacity development design thinking, business modelling, etc.; Complexity Low • exposure to start-up mentors, domain experts, cor- Expertise Medium porate experts, etc. to get feedback on their business Cost € model; Time frame 5 months • the possibility to discuss potential collaboration and develop cross-continental connections and partnerships Sustainability dimension Green and inclusive with other start-ups who were part of the bootcamp or Phase Start with other organisations and companies the start-ups were exposed to; Tool in brief • the opportunity to develop partnerships with corpo- A cross-border start-up programme (bootcamp) is a tool to rates for further support in the areas of mentorship, foster exchange between start-ups from different coun- infrastructure and technology in building their IBs; tries. It was organised as part of the Strategic Alliance – an • the possibility to better understand respective markets initiative implemented by GIZ in cooperation with Bosch and chances for expansion. and Intellecap under the developPPP.de framework of the German Federal Ministry for Economic Cooperation and Target group Development (BMZ). The objective of the Alliance is to fos- The main target group for the cross-border start-up ter corporate engagement in the start-up ecosystem and set programme was start-ups and social enterprises with up partnerships between corporates and incubators as well innovative and creative product or service IB ideas with an as corporates and start-ups, namely social enterprises 13. existing prototype or proof-of-concept. The first boot- The collaborative programme was first tested by GIZ in camp targeted solutions in the energy sector – be they partnership with Bosch, SAP, Intellecap and Social Impact digital, social or innovations in technology, clean and sus- Lab, an incubator fostering social innovation in Berlin, tainable energy, or energy efficiency. It is suggested that a Germany in July 2016. The bootcamp provided start-ups sector-focused bootcamp should be run, ensuring targeted with the opportunity to interact with corporates, mentors, exchange and the development of synergies. technology experts and other key stakeholders to further develop their products and services, validate business plans, exchange ideas, develop synergies and understand the respective markets. 13 For the purposes of the tool, start-ups with inclusive business models will be referred to as start-ups. Cross-Border Start-up Programme | Green and Inclusive Business Toolbox | 55 Tool description • Relevance: What relevance has the start-up regarding The cross-border start-up programme (bootcamp) was the energy sector/challenge? designed under the Strategic Alliance, a public–private • Innovation: How innovative and creative is the pro- partnership set up between GIZ, Bosch and Intellecap posed IB solution? which seeks to foster corporate engagement in start-up • Potential: Does the business growth model demonstrate incubation. The idea of developing the bootcamp was con- potential for delivering scalable social or environmental ceived in February 2016 in discussion with Social Impact impact? Lab and GIZ along with the interest of Bosch and SAP. It • Sustainability: Is there clear evidence of market de- was developed in line with the objective of the Strategic mand for the product or service demonstrated by per- Alliance to foster partnerships between corporates and formance data from at least a pilot or proof of concept? incubators as well as corporates and start-ups. The first • Motivation: How much would the entrepreneur benefit bootcamp targeted start-ups from the energy sector. GIZ, from the programme? in close cooperation with Social Impact Lab, developed a month-long call for participation, issued three months During the first sift, all the evaluators had to rate each of in advance of the event. The call for applications was a the allotted applications using the evaluation tool and nationwide call published through multiple digital media indicate the two best applicants from the pool. This assess- platforms in both India and Germany. The sector focus ment resulted in a pool of the top 22 applicants in India for the bootcamp was aligned with the sector focus of and in Germany. Each of these 22 applications was again the corporate partners since most of the companies and assessed by every evaluator who then rated and voted for countries worldwide are attempting to consciously reduce the 10 most suitable applicants, forming the final cohort reliance on a carbon-driven economy. The call requested for the programme. entrepreneurs to submit their application online provid- ing details on the start-up and their motivation to join the bootcamp. Two selection panels were formed – one for Indian applicants and the other for German applicants. The Indian selection panel included representatives from Bosch, Intellecap, and other private sector participants including corporates, ven- ture capital firms and foundations prevalent in the energy sector. The German selection panel constituted experts from Social Impact Lab, research institutes focused on the energy sector, incubators and energy sector experts. All of the ex- perts evaluated the proposals on a pro bono basis. A common evaluation tool was developed by Social Impact Lab and GIZ which was provided to each of the panellists in India and Germany. The selection criteria in the evaluation tool included: 56 | Green and Inclusive Business Toolbox | Cross-Border Start-up Programme • Ongoing mentoring by Bosch, SAP and design thinking experts to provide an opportunity to the participants to exchange with the mentors and understand business models better and evaluate their IB ideas accordingly. • A one-day demo day event as the culmination of the bootcamp, which enabled start-ups to pitch and show- case their innovative IB products and solutions to global companies including Bosch, SAP, RWE, Vattenfall, The bootcamp offered start-ups a platform to interact with Solenia, Weltenergierat, InnoZ, VNG, Bundesverband fellow entrepreneurs and experts from the industry, and Solarwirtschaft and AtomLeap, to name a few. The event provided them with multifaceted exposure encompassing also witnessed a reverse pitch from the corporates to training, individual coaching and an opportunity to pitch present their offerings to the start-ups. their ideas to corporates at the end of the bootcamp. The main programme elements included: Project set-up • A one-day ice breaking session including team building The bootcamp was conceptualised, seeded and launched activities and presentation of IB ideas by the individual by GIZ and Social Impact Lab with support of Bosch, SAP start-ups. and Intellecap under the Strategic Alliance, a public–pri- • A two-day design-thinking workshop to get insights into vate partnership developed under BMZ’s developPPP.de the human-centred design approach. The workshop was framework. held by professional design-thinking coaches trained at the HPI School of Design Thinking and currently work- Tasks and timeline ing with Social Impact Lab. The approximate tasks and timelines for the implemen- • A two-day business model generation workshop con- tation of the cross-border exchange programme were as ducted by business model innovation coaches from SAP. follows: The participants learned to define the value proposition associated with their IBs and further refined their IB Work plan tasks M1 M2 M3 M4 M5 (in months) models. Due to the different development stages of the participating start-ups, the coaches prepared different tools and templates such as the Business Model Canvas to Project inception adjust to the individual needs of the start-ups. and planning • A two-day guided tour of the technical museum and EUREF campus (Europäisches Energieforum), a symbol of energy revolution, in Berlin. The participants were Marketing and outreach accompanied by GIZ staff and experts from Bosch. • One day of pitch training delivered by a professional pitch trainer from Silicon Valley. The participants were guided Evaluation and on presenting their pitch in five minutes. The main focus selection of of the training was to enable participants to communicate participants the right message to stakeholders such as investors and corporates, structuring the slides for better presentation Final preparation for the programme and using body language. Every participant got the chance to pitch and received detailed individual feedback. Programme delivery Cross-Border Start-up Programme | Green and Inclusive Business Toolbox | 57 Costs Results and legacy The bootcamp was financed by GIZ, Social Impact Lab, The bootcamp has been successful in achieving its primary Bosch and SAP. The experts on design thinking and busi- objective of setting up a partnership between corporates ness modelling were provided by Social Impact Lab and and an incubator as well as encouraging corporates to work SAP with GIZ providing support for accommodation and with start-ups/social enterprises. The key achievements can travel for the experts. Travel costs and accommodation for be summarised as follows: the start-ups were covered by GIZ. While Social Impact • All stakeholders judged the format to be innovative and Lab provided project management support on a pro bono will repeat the bootcamp in India in March 2017. An addi- basis for the organisation of the bootcamp as well as the tional incubator (IIM Calcutta Innovationpark) has been venue, GIZ took care of the travel and event management identified that will offer a venue as well as expert support for the demo day. Bosch provided three mentoring and for the next bootcamp. subject matter experts that accompanied the whole boot- • The best Indian start-up, the best German start-up, the camp. In future, as the bootcamp will be replicated, GIZ best pitch, and the most disruptive idea were honoured at will provide travel support to the Social Impact Lab ex- the end of the bootcamp. A German start-up participant perts as well as 10 days of project management and expert traveled to India in February 2017, worked out of Bosch cost support. The table below provides some indication of India’s co-working space and received support from the different items to consider when calculating costs: Bosch to set up their India pilot. • Participants stated that the bootcamp had boosted their Items access to partners and networks, both abroad and in their home country. GIZ staff: 30 person-days • Multiple partnership opportunities between start-ups Expert engagement: 10 person-days spread across and corporates emerged out of the programmes: different types of training – One of the Indian start-ups is now piloting their Internet of Things product together with a German Marketing and communication company in its wind parks. Venue for the training – Two of the Indian start-ups are in closer discussion Travel expenses for participants and experts with Bosch to define their partnership. • Ten Indian start-ups (the bootcamp participants and Accommodation and meals another five from among the broader list of applications) were also provided with an opportunity to pitch to a room full of corporates, venture capital firms and acceler- ators in December 2016 in Bangalore. • As a result of the participation in the cross-border exchange programme, entrepreneurs and their business ventures received media attention and increased visibility. • The programme also provided start-ups with a platform to interact with fellow entrepreneurs and learn from the industry experts. 58 | Green and Inclusive Business Toolbox | Cross-Border Start-up Programme Regional GIZ Programme Cooperation Platform Latin were prepared for the actual event. The actual co-cre- America North ation workshop entitled ‘Business Design-Innovative Business Models 4.0’ took place in Munich and Feldafing Another example for a cross-border activity which aims in May 2017. During the two workshop weeks Latin to enhance entrepreneurs’ capacities and expand their American entrepreneurs had the opportunity to further international network is a collaboration between public develop and internationalise their business models. In and private sector actors from Mexico, Costa Rica and addition, there were experts from the Entrepreneurship the federal state of Bavaria. In a joint effort, the Regional Centre from Ludwig-Maximilians University in Munich GIZ Programme Cooperation Platform Latin America and representatives of established Bavarian companies North (COPLAN), the Mexican Business Coordinating on site to both provide practical advice and to detect po- Council (Consejo Coordinador Empresarial), the Mexican tential start-ups for business cooperation. The workshop National Entrepreneur Institute (Instituto Nacional del also included joint visits to Bavarian cluster and start-up Emprendedor), the National Council for Research and centres which allowed the participating entrepreneurs Technology Costa Rica (Consejo Nacional para Investiga- to gain a better understanding of the Bavarian support ciones Científicas y Tecnológicas), the Representative Of- system for innovative entrepreneurs. fice of the State of Bavaria in Mexico, the local Chambers of Industry and Commerce (AHK) and the GIZ Bavarian In a debriefing workshop in August the entrepreneurs Country Office organised an integrated workshop to had the opportunity to present further development support Mexican and Costa Rican start-ups working in ambitions and receive consultancy services on practical the field of industry and economy 4.0. implementation and internationalisation. After entrepre- neurs had put the advice into practice, new international As a first step, there was a two-week call for applications. partnerships emerged. So far, the workshop has already Despite the rather strict participation requirements a lar- proven to be successful in that a number of cooperation ge number of start-ups submitted their applications, of activities have developed. In addition, public and private which 15 Mexican and five Costa Rican participants were actors from Mexico, Costa Rica and Bavaria have already selected. After a two-day workshop developed by the affirmed their interest in repeating the activity in 2018. Mexican and Costa Rican AHKs and hosted by experts in cultural communications, participants from both nations For more information please consult COPLAN. Success factors and lessons learned • Careful selection of mentors and experts and a diverse A number of factors contributed to the success of the range of strategic partners ensured that the participants programme: had multifaceted exposure to reflect on their start-ups • The collaboration with Social Impact Lab proved to be and contributed to the quality of the programme. one of the key success factors for the programme, thanks to its excellent on-the-ground presence in Germany in the start-up incubation space, prior experience of work- ing on social exchange programmes of similar formats in Further information Germany and Eastern Europe and their intrinsic motiva- and GIZ contact tion to work with Indian entrepreneurs. To find out more information on this work, contact the • In order to reach as many entrepreneurs as possible and Private Sector Development Programme India or the ensure quality applications, marketing and publicity Strategic Alliance ‘Corporate Engagement in Start-up through digital media turned out to be another key suc- Incubation India’ cess factor. Incubator Manager Training | Green and Inclusive Business Toolbox | 59 Incubator Manager Training A start-up developing an IB model requires start-up training just like any other business. However, training alone might not suffice. Additional assistance will be needed when developing the IB model — for example, in con- ducting market research. Inclusive business service providers and incubators can help new firms overcome these challenges by providing tailor-made training and services, while also enabling mutual learning processes and the creation of linkages. Promoting the creation of support organisations that specifically target potential inclusive businesses helps to build the infrastructure required to foster the development of IB that include the BoP on the supply side or the demand side. The GIZ Private Sector Development team in India has tested this approach by creating a network of IB service providers. CREATING A NETWORK OF INCLUSIVE Target group BUSINESS SERVICE PROVIDERS IN INDIA The primary target group for the workshops consisted of IB support organisations in the broad sense of the term. Overview These included foundations and CSR departments, IB incubators, non-profit organisations, industrial bodies, Type Capacity development regional economic development bodies, and organisa- Complexity Medium tions providing access to rural markets. The secondary Expertise Medium target group was enterprises incorporating IB models, Cost €€€ which were targeted as a way of highlighting the types Time frame 11 months of enterprises that the support organisations should be Sustainability dimension Inclusive supporting. Phases Start Scale Tool description In a strategic partnership, GIZ and Aarohan Ventures Tool in brief launched a series of co-branded Network Expansion In 2013, the GIZ Private Sector Development team in India Workshops, with the aim of bringing together support implemented a workshop series in partnership with Aar- organisations and enterprises with IB models to enhance ohan Ventures to support the capacity development of in- the ecosystem and build capacity for inclusive business clusive business incubators and enterprises. The first series in India. Aarohan Ventures is an early-stage venture fund of four workshops, delivered in different regions of India, and incubator focused on building scalable education, proved a success, so a second series of three workshops health care and technology solutions for development coupled with tailor-made assistance and hand-holding for and is hosted by the Indian Institute of Management, the participating organizations has taken place in 2015. Ahmedabad (IIMA). The series of four workshops held in 2013 covered different regions of the country. The first Tool objective workshop was held in April 2013 at the Indian Institute of The activities’ key objectives were to: Management, Ahmedabad, in Gujarat, and the subsequent • strengthen the support infrastructure for IB in locations workshops were held in: July 2013 at Kumaraguru College where this is lacking; of Technology in Coimbatore; August 2013 at the Xavier • connect enterprises with IB models and incubators to School of Management in Jamshedpur; and Novem- promote ongoing collaboration; ber 2013 at Banaras Hindu University in Varanasi. The • educate enterprises and incubators on how they can workshop in Varanasi deliberately coincided with Global contribute to effectively solving social issues and the Entrepreneurship Week. inclusive growth agenda. 60 | Green and Inclusive Business Toolbox | Cross-Border Start-up Programme The workshop series was co-branded with Aarohan The networking session on the second day provided Ventures, which was primarily responsible for planning the IB support organisations with the time and space for and implementing the events. Aarohan Ventures also matchmaking, mingling and having brief one-to-one con- drew up an invitation list of potential host institutions, versations to understand what everyone is doing and what incubators and enterprises to target in each region. The kinds of support they can offer each other. GIZ team then vetted the list prior to the invitations being dispatched. Organisations registered their interest in par- While enterprises with IB models were not the primary ticipating in the workshops by submitting an online form target group for the workshop series, they were brought where they provided information about their organisation into the event to expose support organisations to the and also a link to their LinkedIn profile. kinds of outfits involved in IB. However, as these outfits’ also need support and as a quid pro quo, they were also Each event consisted of two workshops: one for the provided with relevant training. support organisations (the incubators) and the other for the enterprises. These comprised one day’s training plus a The workshop for enterprises with IB models focused on half-day networking event that brought the two groups understanding the challenges faced by IB start-ups and together. The training workshops were run consecutively helped to identify ways of overcoming these challenges. over the course of three days so that the same team of At each workshop, different experts were brought in to facilitators and convening organisations could deliver the provide enterprises with specialist training on topics training to both groups. As such, the support organisations including financial modelling or impact measurement. had their training day prior to the half-day with net- The experts were identified through Aarohan Ventures’ working session, while the enterprises had their training network, which it has developed through its other work following on from the networking session. streams and links to the university. The workshop for the IB support organisations consisted Project set-up of educating participants about the IB ecosystem in India The GIZ PSD team formed a strategic partnership with and enabling them to identify and mobilise their resources Aarohan Ventures to deliver the workshop series. Addi- to support various social enterprises, including identify- tional local consultants were also brought in to provide ing how these activities can be made self-sustaining. Case specialist technical support for specific workshop sessions. studies were a key methodology used during the training session, with participants being tasked to develop ideas Tasks and timeline on the types of support they would provide the featured The first workshop series took place over a period of ap- enterprise. proximately eight months, while its planning phase lasted three months, meaning the initiative took a total of 11 months to organise and deliver. Work plan tasks M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 (in months) Project inception Planning Marketing Workshop delivery Follow-up Cross-Border Start-up Programme | Green and Inclusive Business Toolbox | 61 Costs The items to consider for one workshop series are as follows: In terms of legacy, a key impact of the first workshop series has been that one of the participating organisations, Items Kumaraguru College of Technology, has since established itself as an incubator and received national accreditation Staff time: 25 person-days from the Department of Science and Technology. More- Consultancy services: 4 full-time staff over, building on the success of the first workshop series, a second series started in October 2014 with a workshop Service providers for the incubator training and enterprise in Jaipur that focused on India’s northwest and a second workshop workshop in Hyderabad in February 2015 that focused on Venue for the incubator training and enterprise workshop the south of the country. This workshop series is target- ing a smaller group of incubators and includes intensive Travel expenses for the incubator training and additional support delivered at the Centre for Innovation, enterprise workshop Incubation and Entrepreneurship (CIIE) at IIMA. Results and legacy Success factors and lessons learned The following results are associated with the first series of A number of factors have contributed to the success of workshops these workshops, including: • A total of 72 participants attended the four workshops: • having a strong partner organisation that not only is IB support organisations represented the largest per- recognised as a leading incubator with relevant technical centage of attendees at 31%, followed by 21% from CSR expertise, but also maintains a network of enterprises and foundations and 18% from existing incubators. support organisations that can be invited to attend or • A total of 61 individuals representing 55 enterprises speak (i.e. the partner has strong convening power); with IB models attended one of the workshops focused • CIIE’s and Aarohan Ventures’ interest in using the work- on enterprises. Sectors represented included, among shop series to develop a pipeline of sourcing partners others, education, energy, fair-trade products, hand- for its own work was of value as their interests extended icrafts, ICT for development, microfinance, organic beyond the scope of their contractual agreement. farming and waste management. • The documented benefits for IB support organisations Further information included gaining an understanding of the different and GIZ contact models for supporting enterprises with IB models, as For up-to-date information on the workshop series, visit well as understanding the complex requirements of the implementing partner’s website at: https:// these enterprises and the existing facilities available to yourstory.com/2013/07/ciie-aarohan-giz-workshop- them. ecosystem-development-social-enterprises/ • The documented benefits for participating enterprises included the access they gained to support organisa- The publication Enablers for Change — A Market Land- tions — including companies working in the region scape of the Indian Social Enterprise Ecosystem is or NGOs and community organisations with a similar available at: http://www.giz.de/en/downloads/ interest — and the opportunity to identify and reflect on giz2012-enablers-for-change-india-en.pdf challenges and evaluate priories for action. For further information and to request the case studies used during the incubation workshops, contact the bilat- eral programme Private Sector Development, India. 62 | Green and Inclusive Business Toolbox | Scaling programme for Green and Inclusive Businesses Scaling programme for Green and Inclusive Businesses In most settings with support structures for green and inclusive businesses, the support offered targets early-stage businesses only. The most common programmes include business plan competitions, incubation programmes that last a few days only or co-working spaces. There are much fewer support programmes available for more mature businesses. However, many green and inclusive businesses struggle after a successful start-up phase with impediments to financing and difficulties to settle in the market. Therefore, more and more actors, including development cooperation, are thinking about how to support the development and scaling of rather mature green and inclusive businesses. One example of a scaling programme implemented by GIZ, is the Nawart programme developed by the RIBH MENA. The Nawart programme aims to help innovators and entrepreneurs to improve and scale their start-ups by providing intensive technical and business trainings and consultations as well as inves- tor and partner matching events. THE NAWART PROGRAMME FOR RENEWABLE Tool objective ENERGY BUSINESSES IN EGYPT The objective of the programme is to help clean tech businesses achieve scale. Nawart aims to reach its goal by Overview leveraging research and experience in the field of clean technology entrepreneurship and consultancy experience Type Capacity development in the Egyptian market. Nawart’s ultimate goal is to create Complexity Low small businesses in the field of renewable energy and Expertise Medium to contribute to the socioeconomic development of the Cost €€ country. Time frame 12 months Sustainability dimension Green and inclusive Target group The target group consists of innovators, entrepreneurs Phases Start Scale and renewable energy start-ups that are planning to design their business models sustainably, with a focus Tool in brief on social impact and to better serve the market through The Responsible and Inclusive Business Hub (RIBH) in scaling and growing. the MENA region established the Nawart programme in Egypt in 2015. Nawart means ‘You brought light’ in Arabic Tool description and the programme has been piloted with a focus on the As a first step, a consultant conducted a business oppor- renewable energy sector. In early 2016, the consulting firm tunity mapping to analyse the business potential of the PricewaterhouseCoopers (PwC) integrated Nawart into clean tech sector in Egypt and the added value of inclusive their existing start-up programme. The RIBH and PwC business models specifically. The result of the mapping jointly implemented the programme in cooperation with was a tailor-made approach for the Egyptian renewable the social enterprise Cleantech Arabia and the Egyptian energy sector. Based on this mapping, the programme has Ministry of Trade and Industry. In the course of the pro- been developed. gramme participating entrepreneurs obtain sector-specific training, one-on-one consultancy to consolidate their business model and support in obtaining financing for scaling their business. Scaling programme for Green and Inclusive Businesses | Green and Inclusive Business Toolbox | 63 Step by step the implementation of the programme 6. Public events, networking opportunities and access to started: finance: Within the different stages of the programme, 1. Business opportunity mapping: A consultant (paid participating businesses received expert feedback and by PwC) conducted a mapping to analyse the business financial support to their prototyping in addition to potential in the renewable energy sector in Egypt. investment matching at the end of the programme. 2. Outreach to businesses, application and selection: 7. Follow up: In order to evaluate the sustainable ap- After several information sessions and extensive proach and the impact of the Nawart-programme the outreach activities to potential green and inclusive RIBH-MENA team is still in contact with the different businesses fifteen candidates were selected. start-ups. 3. Capacity building of participating businesses: The par- ticipating start-ups received intensive capacity building The Nawart programme reached the following figures: on renewable energy technology assessment, on how to • 110 applications, 15 start-ups selected, 13 finished the design a business case, on market surveillance and on programme. marketing (conducted by a consultant). • The start-ups cover 7 business opportunities in the 4. One-on-one consultancy, advisory and prototyping: renewable energy sector, 4 of them serve the base of the The participants received one-on-one consultancy to pyramid (BoP) directly. further improve their business model and advisory • 6 have female founders or co-founders. services. • 4 employees as average per business 5. Piloting on the ground: In a fifth step, the start-ups • The number of participating start-ups per geographical received the opportunity to pilot their business model region: 2 Delta Region – 4 Upper Egypt – 9 Cairo on the ground to further adjust it to a real life context. The programme design was the following: Info session Application Prototyping & deadline Preparation developing business BUSINESS FOUNDATION 1 2 3 CAPACITY 4 OPPORTUNITY OUTREACH BUILDING BUILDING consultancy & advisory MAPPING Announcement Selection Presentation Grand 15 candidates Day Opportunities selected EGP 40,000 + Exposure 5 START UP PILOTING FOLLOW UP 7 follow up & access to 6 on the ground work finance Public event & Expert networking panel opportunities 64 | Green and Inclusive Business Toolbox | Scaling programme for Green and Inclusive Businesses Project set-up RIBH MENA cooperated with PricewaterhouseCoopers and Cleantech Arabia, an Egyptian social enterprise working in the renewable energy sector. The business opportunity mapping, the outreach, the capacity building sessions and the technical consultation (hardware related) was conducted by a consultant in close cooperation with the RIBH MENA (paid by PwC). Tasks and timeline Work plan tasks M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 (in months) Business opportunity mapping Outreach to businesses, application and selection Capacity building of participating businesses One-on-one consultancy, advisory and prototyping Piloting on the ground Public events, networking oppor- tunities and access to finance Follow up Costs Results and legacy Even if the RIBH MENA had a relatively small budget, the Items Nawart programme was constantly growing and reaches Needs assessment, including the sector analysis (PwC) as of today the following results: Venue and catering for workshop (RIBH MENA) • Eight start-ups developed market-ready products. • Five start-ups achieved revenue generating / growth Public events and matchmaking sessions (RIBH MENA) stage. Costs for trainers and development of manual (PwC) • Start-ups raised 400,000 EGP (around 20.000 EUR) of grants from partners/ Nawart stakeholder network Consultant to conceptualise the entire programme (PwC) (incubators, companies/SMEs, prototyping grants). • Start-ups raised 950,000 EGP (around 45.000 EUR) in funds/investments (investors/angel investors/VCs). Scaling programme for Green and Inclusive Businesses | Green and Inclusive Business Toolbox | 65 The Nawart programme will now be replicated to others • Finally, the sector specific approach helped the pro- sectors: The GIZ Programme for Small and Medium gramme to gain long-term commitments (capacity Enterprises (PSME) in Egypt uses the Nawart model for building, consultation, networking and investments entrepreneurs in the agricultural. The Egyptian Ministry events), which are key to achieve impact. of Trade and Industry is replicating the model in three areas, e.g. in waste management, funded by the African Handbook Grow – Scale – Impact Development Bank. With the handbook ‘Grow –Scale – Impact’ GIZ in Success factors and lessons learned collaboration with the Global Social Entrepreneurship Network (GSEN) provides advice on the acceleration – The main success factors were: meaning the support in scaling up – of inclusive business • The close cooperation with the private sector (including models specifically, although most parts are equally rele- the sponsorship of the programme), as PwC could bring vant for green businesses. In essence, the handbook aims in their expertise in terms of verifying the business case at helping private sector development programs and of the start-ups and whether they would be considered providers of business development services to support bankable. the scaling up and replication of inclusive businesses in a • That the programme accompanies start-ups over a pe- systematically integrated and cost-effective manner. riod of ten months. In contrast to shorter programmes At the core of the handbook lies a seven stage framework, Nawart offered the opportunity to adequately test/pro- guiding readers through the cycles of preparation, imple- totype the learnings, re-assess the success and if needed mentation and follow up of an acceleration program. Each continue adjusting the product. Furthermore, the chapter is dedicated to one stage and provides a step by programme allowed the participants to learn not only step description of the measures to undertake. For each stage the handbook provides support in answering the basic business skills (like in many shorter courses) but essential questions. These include: What is the objective to go into sector-specific detail. This way participants of the stage? What are the steps to follow to reach the were able to really understand the market and business stage objective? What are the capacities, resources needed situation. and financing requirements? Each chapter contains online • Equally, one-on-one sessions and feedback rounds resources such as case studies, checklists, potential part- allowed deep case-by-case discussions. ner databases, platforms or questionnaires that enable • Creating a learning atmosphere that was on the one the user to prepare, implement and evaluate an inclusive hand competitive but allowed long term learning on business scaling program. The handbook represents a the other hand. The criteria were strict, e.g. in case a flexible and iterative process that is adaptable to country- company did not adequately fulfil the homework tasks or sector-specific conditions. they were not allowed to pitch. The handbook is available online free of charge at http://star-www.giz.de/pub?r=42624 The key lessons learned were: • That the business model is the main driver for start-ups. If you have any questions, please contact the Sector Only if the business case is valid, it can be sustainable. Project Sustainable Economic Policy and Private Sector • It is of great importance to have a realistic view on start- Development. up needs, which are not always equivalent to a donors´ point of view. • To ensure a proper reality check it was useful to expose Further information the start-ups to investment opportunities and experts and GIZ contact and to allow competition for scarce support (e.g. limited For more information on this work, contact amounts of one-on-one trainings, opportunities to Maren Breuer (maren.breuer@giz.de) pitch ideas) between participants for better results. 66 | Green and Inclusive Business Toolbox | Business Skills Training For BoP-Entrepreneurs Business Skills Training For BoP-Entrepreneurs BoP (people living at the economic base of the pyramid) entrepreneurs often lack business skills, which are a necessity to successfully start and run their business. Classical business development services are usually not adapted to this target group, as they cater to more skilled and educated people. Consequently, a tailored train- ing model for BoP entrepreneurs is needed to adequately support them to gain access to knowledge and market services. The Responsible and Inclusive Business Hub (RIBH) in Egypt identified the need for a specific training programme for women entrepreneurs in the food sector. They therefore launched the Baladini kitchen incubator which offered, in addition to training, a shared production space that acts as both a work place and a platform for exchange of experience. BALADINI – AN INCUBATOR FOR FEMALE to February 2015, the RIBH MENA assisted Nawaya in the FOOD ENTREPRENEURS IN EGYPT launch of a shared kitchen incubator (Baladini) to provide a training space and incubator for female food entrepre- Overview neurs in Egypt. The concept offers a central space for the production of food and supports women in learning how Type Capacity development to run their own restaurant or catering business with the Complexity Low goal of improved quality of life for the local community. Expertise Medium The RIBH MENA supported Baladini with access to a Cost €€ range of experts and knowledge in order to implement a Time frame 5 months series of initial training sessions, and helped the project to jump from a basic level to a competitive position in the Sustainability dimension Inclusive market. By reducing food waste through increased shelf Phases Start Scale life and by finding creative ways to utilise often-discarded agricultural products Baladini’s aim is to deliver higher income gains to producers; for example, through mixed revenue models with diverse levels of profitability and market penetration. Tool objective The main goal is to improve the business model of female entrepreneurs. The training covered different modules such as accounting, market analysis, marketing, etc. with the objective of fostering the women’s capacities to run their own businesses. Led by women, in partnership with local farmers, the project seeks to place the entire food production chain – growing, producing, processing, and food selling – in the hands of farming communities. By doing so, Baladini aims to increase local family income and valorise rural areas for their contribution to society. TOOL IN BRIEF The Baladini women’s entrepreneurship kitchen in- Baladini targets the food sector in Egypt and also aims to cubator was a collaboration project between the RIBH guarantee a better quality of life for the local community Middle East and North Africa (MENA) in Cairo and the by fostering healthy nutritional food practices for women Egyptian social enterprise Nawaya. From November 2014 and their families. Business Skills Training For BoP-Entrepreneurs | Green and Inclusive Business Toolbox | 67 Target group 2. Implementation and training phase I (conducted by a The main target group of the Baladini kitchen incubator consultant) was low-income women from the Abu Sir/Sakkara region • In the beginning of the implementation phase the in Egypt. Aged between 18 and 45, these women were se- project piloted a series of training sessions and work- lected based on their representation in their communities, shops in order to provide the women with healthy and relying on well-defined criteria and guidelines based on sustainable practices regarding nutrition, hygiene, food Nawaya’s farmer selection process for selecting the female production and business development. leaders, and were recruited through relationships developed • Simultaneously, awareness-raising activities focused with local associations in the area. on food-related associations were conducted in the surrounding communities to inform them about the Tool description possibility of fair and innovative food products. To fos- Building on the women’s excitement around food-based ter exchange, to promote food gatherings and to discuss economic opportunities, as well as dialogues around cross-cultural food topics, the project established a traditions and female challenges, Baladini envisions the series of innovation circles. development of a platform that can support women in the 3. Implementation and training phase II (conducted by a development, testing, and launch of inclusive food-based consultant) ventures. The business model is mainly modelled after the • In a second step, five ‘high-impact women entrepre- ‘kitchen incubator’ business model. A kitchen incubator neurs’ received further training on catering and event allows entrepreneurs to prepare food in a shared equipped management. They learned about basic business tech- kitchen. This provides the women with an opportunity niques, including customer analysis, pricing, revenues, to prepare food in a commercially equipped and hygienic profit, sales and marketing. Furthermore, they were kitchen and sell it to the public. Baladini also has a train- familiarised with management systems, including daily ing aspect to it, covering nutrition, food safety and, later inventory, sales and revenue counting, sign in and out, on, business management skills. and cleanliness monitoring. 4. Wrap-up phase and ‘reality check’ The RIBH MENA assisted Nawaya in the launch of a The female entrepreneurs started to explore the market shared kitchen that can act as a training space and in- by offering their products and preparing food for cater- cubator for Egyptian women from rural areas working ing events. as entrepreneurs in the food sector. For the duration of 5. Reporting and evaluation (conducted by a consultant) the programme, they set up a kitchen space, selected a In a last step Baladini has been evaluated and the impact new cohort of women, launched a pilot series of training measured, e.g. on increased salaries, new business op- and workshops, and established the foundation for the portunities and number of customers. production and sale of local, artisanal food. Therefore, the concept not only offers a central space for the production The RIBH MENA supported Baladini with access to a of food, but it also supports women in learning how to run range of experts and knowledge in order to implement a their own restaurant or catering business with the goal of series of initial training sessions and helped the project to improved quality of life for the local community. jump from a basic level to a competitive position in the market. In order to work sustainably and to use the entire 1. Preparation and selection of participants (supported by network, the main precondition was to cooperate with a Nawaya) local (social) business that has access to the target group. • The project has selected a cohort of 21 women and established a central food hub/kitchen incubator space; Project set-up thus, the target group can use it on a long-term basis for The RIBH MENA that is located in Cairo cooperated with training and practice. the Egyptian social enterprise Nawaya. With the support of a consultant, they jointly launched the kitchen incuba- tor Baladini. 68 | Green and Inclusive Business Toolbox | Business Skills Training For BoP-Entrepreneurs Tasks and timeline Work plan tasks M1 M2 M3 M4 M5 (in weeks/months) Preparation, awareness raising and selection of participants Implementation – training phase I Implementation – training phase II Wrap-up phase and ‘reality check’ Reporting and evaluation Costs Due to the close cooperation with local partners, the RIBH MENA invested less than EUR 20,000 to support the set-up of the kitchen, develop and implement training, evaluate the success of activities and organise the group of women in a stable manner. Items Kitchen set-up + restoration of the facilities (support for kitchen set-up by RIBH MENA) Training development and implementation (24 person-days) Business Skills Training For BoP-Entrepreneurs | Green and Inclusive Business Toolbox | 69 Results and legacy Success factors and lessons learned The Baladini kitchen incubator has identified the follow- The project identified the following success factors: ing results: • In a rural Egyptian context, one of the most important • In total, Baladini has empowered 21 low-income wom- success factors is the fact that the kitchen is located en from the rural community of Abu Sir with the skills, within the community. Close cooperation with the local knowledge, and resources to produce high value-added community helped to create ownership for the project. clean and healthy food products. • Partnering with a local social enterprise (in this case • The Baladini kitchen incubator employed all 21 women, Nawaya) was important to gain access to their network. who received training in areas of nutrition, health and • The long-term commitment from all stakeholders was food hygiene practices. The women also received train- crucial. ing in basic business techniques, management systems, • The training was tailor-made to strengthen the business management a catering event and additional language model of the female entrepreneurs. training. • Given that they rarely had prior professional work After several months of operation the Baladini kitchen experience (first work opportunity), the employment incubator identified the following lessons learned: granted additional income sources for their families • Working on the ground and on a day-to-day basis is ranging between EGP 500 (around EUR 24) and EGP crucial for the success of the project (gaining trust, 1,300 (around EUR 60). In addition, as the women had exchanging knowledge, sharing experience, etc.). the opportunity to work part-time, they were able to • Awareness raising among consumers is very important maintain the balance between work and family. to close the social gap between isolated women in rural • Through its operation, Baladini sourced products areas and urban communities and to increase their sales. from approximately 10 local small-scale farmers and • Working on psychological issues, not only on the agri-processors such as millers. Therefore, Baladini technical ones, to enable the women to be motivated, indirectly created further jobs. Also, it worked through self-driven and have a feeling of ownership is crucial the principles of fair trade which is one of the most for the sustainability of the project and a proper impact important pillars of its work. achievement. • Baladini generated considerable economic growth. It • Especially in the cooperation with low-income house- has reached more than 2,800 customers and sold around holds as a target group, cultural, religious and social 5,300 products either through physical shops or via circumstances play a significant role (e.g. no communi- other channels (e.g. direct-to-customer and online). cation between foreign men and local women possible). • Some of the most notable clients of Baladini are the Italian Cultural Institute, the Embassy of Denmark, the Swiss Embassy, the British Cultural Institute and GIZ. Further information • The project fostered the creation of a wider shared com- and GIZ contact munity interest in the subject of healthy, clean and fair For more information on this work, contact food, and the promotion of greater access to such food Maren Breuer (maren.breuer@giz.de) for low-income populations. 70 | Green and Inclusive Business Toolbox | Remote Strategic Advisory Services Remote Strategic Advisory Services In countries where no private sector development programmes with inclusive business (IB) activities exist or a fragile context impedes international IB experts from working in the field, it is often challenging to identify and establish a relationship with companies that include people living at the economic base of the pyramid (BoP) in their value chain. Even in countries where access to the private sector is easier, the attraction of national or local companies with IB potential may be difficult without adequate incentives that encourage companies to engage with development cooperation. The Remote Advisory Service for IB is a tool that allows a cooperation programme outside the country to analyse the IB potential of a national company at a low cost, preparing the ground for further in-depth cooperation in the event that the business model appears promising in terms of its IB potential. The service consists of a set of tools that aim to identify key challenges along the value chain of the company and offer potential solutions. ADVISING COMPANIES IN THE SECTOR OF Industry in November 2016, the organisers felt that more FAST MOVING CONSUMER GOODS IN EGYPT companies could benefit from the activities and thought of incentives for the private sector to get involved. Overview The Remote Advisory Service identifies and supports Type Capacity development national companies of any size and sector with growth Complexity Medium potential regarding their IB model, assesses the company’s Expertise High organisational fitness on working with the BoP, analyses the Cost €€ company’s value chain, identifies key challenges, offers po- tential solutions to overcome the challenges and supports Time frame 6 months the development of a partnership strategy for the company. Sustainability dimension Inclusive Phases Adopt Scale Companies are invited to apply for a free or low-cost Re- mote Advisory Service on IB in the framework of a call for proposal based on pre-established criteria for selection. Tool in brief The service was designed by the Centre of Partnerships for Tool objective Development (CAD) and implemented for the first time be- The service aims to develop and improve IB practices and tween January and June 2017 in ten companies in the sector BoP strategies for national companies in developing coun- of fast moving consumer goods (FMCG) in Egypt in coopera- tries in order to take full advantage of the market potential tion with the Inclusive Business Action Network (IBAN). Due of low-income communities and deliver long-term results. to the high demand a second round is being prepared. Partial objectives are: • identifying and engaging companies with interest in In 2015 IBAN launched a baseline assessment of the FMCG developing IB models; sector in Egypt targeting the BoP. Based on the identified • obtaining information about their organisational fitness opportunities for IB models, IBAN decided to develop regarding the BoP in order to be able to maximise their capacity building and networking events for companies impact working with and improving the lives of BoP and other stakeholders in the IB ecosystem and launched communities, while improving the efficiency of the a Global Practitioner Guide on IB in the FMCG sector with business model; case studies worldwide. • identifying challenges with regard to the implemen- tation of BoP strategies in the companies and helping After an IB Sector Dialogue (see tool 4) had been im- companies successfully address such challenges; plemented in cooperation with the Chamber of Food • designing and implementing a partnership strategy. Remote Strategic Advisory Services | Green and Inclusive Business Toolbox | 71 Target group call. Based on the goals and milestones identified, a step- The main target group is national companies in devel- by-step action plan for the next three months, including oping countries independent of their size and the sector well-defined key performance indicators, is prepared. they belong to and with a genuine interest in engaging low-income communities through their value chain. Nev- The company is then asked to thoroughly review the ertheless, it has been useful to apply the service to a group report as well as the action plan and provide feedback. The of companies from the same sector in order to be able to report enables the company to stay on track to reach its offer peer learning formats and share experiences about milestones and defined goals and will be vital to bring the how to address similar challenges. company to the next level of IB. The one-to-one advisory service is an attractive first step In a final bilateral call, the progress of the engagement is for companies as it addresses their concrete challeng- discussed and the summary report is updated to include es without initially requiring much time or personnel the process and implementation status. resource. The next steps may include further activities provided Tool description by the same or other actors such as IB Sector Dialogues A call for proposal is launched in which companies that or working groups for partnering, direct matching with work with low-income groups as providers, retailers, potential investors or other partners like NGOs, e.g. in or- distributors or consumers are invited to apply for the der to set up a training programme for providers. Thanks Remote Advisory Service on IB. Criteria for the selection to the information obtained during the process these of the companies are: quality of the IB model, scope and activities can be tailored much better to the specific needs potential for scale, quality of the information provided, of each company. understanding of the IB concept and motivation for the application. Project set-up The overall coordination was done by IBAN. The project The programme does not require any economic invest- was operated by IBAN through a local consultant with ment from the company. However, to provide the most excellent contacts and communication skills in order to tailored advice, the selected company is asked to confirm attract the national companies. The advisory service was its participation in the programme by signing a memo- provided by CAD, a network of experts working in the randum of understanding (MoU) in which it commits to field of IB and member of the BoP Global Network. The provide the necessary information and staff resources, activities were coordinated with the Promotion of Small jointly develop an action plan with CAD and IBAN and and Medium Enterprises programme in Egypt and the implement it. Once the MoU is signed, the programme can Egyptian Chamber of the Food Industry promoted the be implemented, as outlined below. advisory service among its members. The company has to complete an online survey: the ‘BoP fitness assessment and value chain analysis survey’, defined according to the specific needs identified through the first diagnosis. Estimated time investment: 1.5 hours. Following up on the survey, a one-to-one call is scheduled in order to gather a more in-depth understanding of the company, its challenges and current or potential IB oppor- tunities. Time investment, including preparation: 2 hours. The company then receives a summary report of the main findings gathered through the survey and the bilateral 72 | Green and Inclusive Business Toolbox | Remote Strategic Advisory Services Tasks and timeline Results and legacy • Almost 30 companies applied for the Remote Advisory Work plan tasks M1 M2 M3 M4 M5 M6 Service (in months) • Ten companies were accepted and signed the MoU • In the described case of the Egyptian FMCG sector, the following most common needs were identified: Call for proposals – Small farmers’ commitment and retention (as suppliers and as consumers) – Access to finance for the companies and for their sup- pliers Selection of – Capacity building for workers companies and – Increased efficiency in the distribution chain signing of MoUs – Development of new markets • All selected companies developed an action plan and are Implementation implementing it of advisory ser- • Due to the fact that the programme has only been estab- vices (2 months) lished recently, an impact measurement is not possible yet. Formulation of recommendations and action plan (1 month) Implementation of action plan (ongoing, at least 3 months) Costs Items International consultancy: 4 person-days per company Local consultancy: 2–3 person-days per company Overall coordination: 3 person-days for preparation and final report Remote Strategic Advisory Services | Green and Inclusive Business Toolbox | 73 Success factors and lessons learned The lessons learned were, for example: So far, the success factors identified were as follows: • While some companies have experience in working with • The individual advisory service is an attractive the BoP, others have engaged with low-income commu- low-threshold offer for national companies in developing nities only to a limited extent. For the advisory service to countries that often use IB models without being aware be useful, the action plan and recommendations have to of the IB concept. take into account the level of knowledge and resources in • It provides detailed information on companies, which the company. can be useful, especially in a context where access to • The support of the local consultant is key to success as small and medium-sized enterprises on the ground is the expert provides the necessary intercultural know- difficult. At the same time it provides the companies with ledge and trust-building element in the relationship added value for providing detailed information on their between experts and company representatives. Further- business operations with low-income communities. more, the local consultant brings in the necessary sector • It provides relevant information on companies that may information. be used to design customised formats like the IB Sector Dialogue, peer-to-peer events and other follow-up activi- ties with companies. • The virtual service is easy to understand and to handle on the company’s side due to its well-structured steps that build on each other and provide recommendations Further information for further action in a relatively short time span. and GIZ contact • The Remote Advisory Service on IB requires reliable For more information on this work, contact IBAN: internet access and English, French or Spanish skills on Susanne Friedrich, Peer Learning Manager the company’s side in order to be able to communicate susanne.friedrich@giz.de with the international experts. 74 | Green and Inclusive Business Toolbox | Navigator for Green Incubators Navigator for Green Incubators Businesses can be a main driver for biodiversity conservation and sustainable use of natural resources. Yet, few entrepreneurs develop their business models based on natural resources. The ones that do so face multiple challenges from legal issues on access to genetic resources and patent rights, to permits for the sustainable man- agement of forest resources or the inclusion of local or indigenous communities – often the providers of the raw materials – in the value chain. Other challenges relate to market access for sustainable products, or sustainable packaging. Entrepreneurs working with business models based on natural resources need targeted support that deals with the specificities and challenges mentioned above. NAVIGATOR TO SUPPORT programme was implemented with the private university BIODIVERSITY-BASED START-UPS IN PERU USIL and other partners such as the International Trade Centre (ITC), New Ventures from Mexico, Impact Hub Berlin and Inova Unicamp from Brazil. The incubation Overview programme started in March 2016 and ended in December Type Capacity development 2016. The navigator was published in March 2017. The Complexity Medium navigator comprises the experience and lessons learned Expertise Medium from the incubation programme and a capacity develop- Cost €€€ ment programme for green incubators, accelerators and universities. It was developed in the framework of the Time frame 15 months project PerúBioInnova and the programme ProAmbiente. Sustainability dimension Green Phase Start Tool objective The main objectives of the navigator were as follows: • To contribute to the generation of more green or biodi- Tool in brief versity-based businesses or start-ups that have a social Peru, one of the most megadiverse countries in the world, and environmental impact and help them reach scale. has taken the first steps toward building up a supportive • To assist incubators to ‘green’ their incubation pro- ecosystem for these businesses. In 2016, the first incuba- gramme or open up specific programmes for green or tion programme for biodiversity businesses was launched biodiversity-based businesses. by the private university San Ignacio de Loyola (USIL), • To create consciousness in the public and private sector supported by the project PerúBioInnova. Based on this about the opportunities and limitations of green busi- experience and a capacity development programme nesses and their specific needs. for Peruvian incubators, accelerators and universities, • To help create a viable and robust ecosystem for business- PerúBioInnova developed a navigator for green incubators es that use the natural resource base in a sustainable way. describing the different steps to implement an incuba- tion programme for biodiversity businesses, taking into Target group account the specific needs of these entrepreneurs. The main target group of the tool was incubators, acceler- ators, universities and public institutions responsible for The project PerúBioInnova implemented the first incuba- biodiversity, innovation and business support. The tool is tion programme for biodiversity-based start-ups in Peru. also interesting for entrepreneurs, mentors, etc. It developed a navigator for green incubators with the ob- jective of contributing to the emergence and scaling-up of Tool description green or biodiversity-based businesses that aim to impact In cooperation with the Peruvian University USIL, the ITC positively on society and the environment. The incubation and other allies, such as New Ventures (Mexico), Impact Hub Navigator for Green Incubators | Green and Inclusive Business Toolbox | 75 Berlin and Inova Unicamp (Brazil), the project PerúBioIn- tainable trade, market access for sustainable products and nova started the first incubation programme for biodiver- sustainable marketing and packaging. Other actors such as sity-based start-ups ‘BioStartup – ¡Emprende la biodiver- the Ministry of Environment, PromPerú (Trade Promotion sidad!’. The call for business ideas started in March 2016 Agency) and other partners developed informative techni- and focused on start-ups that base their business model on cal sessions on biotrade, among other topics. Amazonian plants or fruits for the nutrition or cosmetics industries, while simultaneously having a positive environ- Over the eight-month incubation period, the start-ups mental and social impact. The following selection criteria attended technical group sessions on access to genetic re- were used: sources, benefit sharing, traditional knowledge of commu- • Economic and environmental sustainability (maturity nities, biotrade, sustainable marketing, impact innovation, of the value chain and links with providers of raw mate- design thinking, business model canvas with impact and rials, potential to generate added value, gender equality). much more. • Capacity of the entrepreneurial team (complementarity of profiles, commercial and business experience, tech- The programme offered every start-up a personal mentor nical capacities, access to networks, financial support, (university professor, fund manager or successful entre- access to private capital). preneur) as well as specific technical mentoring sessions • Business model (comparative advantage, differentiation on business development, finance and sustainable market- of the supply, identification of market barriers, robust- ing and tailor-made technical support. In contrast to tradi- ness of business model). tional incubation programmes, BioStartUp focused on the • Innovation and market potential (development of new specific needs of biodiversity-based businesses, taking into product or improvement in processes, level of innova- account the specific challenges that these businesses face, tion, definition of market niche). such as access and benefit sharing, or specific issues of forest management legislation. After a rigorous selection process, the programme started with seven start-ups, most of them interested in adjusting Based on this incubation programme, designed to cater to and improving their current business model in order to the specific needs of biodiversity businesses, PerúBioInno- generate a higher added value for their natural product. va developed a navigator that in a first step introduces the They offered their produce either as a final product or different phases of an incubation programme: as an ingredient for the cosmetics or nutrition industry. • Planning and design Some focused on the local market (e.g. intimate soap made • Launch and advertisement from dragon’s blood, a herbal infusion from Amazonian • Selection plants with anti-diabetic properties), export markets (e.g. • Preparation (on three topics: impact entrepreneurship, ungurahui fruit oil for cosmetics) or both (e.g. copoazu social and environmental sustainability, innovation and butter for cosmetics). technology) • Mentoring Impact Hub Berlin developed a boot camp as a kick-off • Bonding (with the ecosystem) session and introduced concepts such as value chain anal- ysis with impact, design thinking and the business model The navigator also gives a broad overview on the specif- canvas. New Ventures, in coordination with USIL and ITC, ic technical issues a green incubator needs to take into developed the model for the incubation programme and account when addressing green businesses. The navigator was responsible for the initial economic analysis of the provides access to a range of tools and instruments that start-ups, as well as for the conceptual development of the were development for BioStartUp and can be used by other demo days (selection of finalists, and selection of two win- incubators or accelerators. It was endorsed by the Minis- ners that were to take part in the Latin American Forum try of Environment and Production and is fit for further for Impact Investing). ITC developed a session on sus- distribution. 76 | Green and Inclusive Business Toolbox | Navigator for Green Incubators Project set-up Costs PerúBioInnova held overall responsibility for the imple- Items mentation of the BioStartUp and development of the navigator and signed a financial contract with USIL, as Contracts with the university operator of the BioStartUp. ITC, New Venture, Impact Hub Contracts with consultancy firm (approx. 30 person-days Berlin and Inova Unicamp contributed as partners to the Contracts with technical experts project, sharing their knowledge with USIL and adding to (approx. 15 person-days per start-up) the navigator. 1 full-time GIZ staff for 12 months Tasks and timeline Events (location, catering, printing material) The core tasks involved in the design and implementation of BioStartUp and the creation of the navigator were as Development, design, layout of the navigator follows: Work plan tasks M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 M13 M14 M15 (in months) Negotiation with possible implementing partners Planning and design of the incubation programme Launch Selection Preparation of start-ups Mentoring and technical sessions Linking to ecosystem Development of navigator Navigator for Green Incubators | Green and Inclusive Business Toolbox | 77 Results and legacy Green Business Model Navigator Through the navigator and the support of BioStartUp, In 2016, the Sector Programme Private Sector Develop- PerúBioInnova contributed to building up an ecosystem ment published the Green Business Model Navigator for businesses that sustainably use biodiversity in Peru. that served as an inspiration to the Peruvian example The results of this endeavour include: above. It is an English language innovative interacti- • Seven biodiversity start-ups improved their business ve knowledge-sharing platform. It introduces green models, developed new or improved products for the lo- business models, outlines the benefits, challenges, and cal and export market by using Peru’s rich biodiversity, scaling-up strategies of green business models, and the making social and environmental impacts. roles of different stakeholders in this process. The navi- • Incubators and universities gained knowledge of the gator includes a database with existing tools to assist in specific needs of biodiversity businesses by implement- the development and implementation of green business ing the first biodiversity incubator. models. • New tools and instruments were developed for green businesses or existing tools improved, like the business The navigator is available at: http://star-www.giz.de/ starweb/giz/pub/servlet.starweb?path=giz/pub/pfm. model canvas or value chain analysis. web&r=38603 • USIL has started its own incubator ‘USIL Ventures’, financed by the Ministry of Production and plans a second round of BioStartUp with focus on Andean toring. In addition, start-ups do benefit from an exchange ecosystems and climate change for 2017. with other start-ups and learn from each other. • Two of the BioStartUp businesses won the competition • An incubation programme needs to build up strong links for biodiversity businesses ‘Reto Biodiversidad’. with financial institutions, as access to finance is critical for business growth. Success factors and lessons learned • It is necessary to define a possible ‘host’ organisation for Some of the necessary preconditions and success factors are the navigator to ensure the dissemination and long• the following: term use. • A local incubator interested in a niche topic, such as biodiversity or other green topic. Costs of the programme can and should be reduced: • A broad group of partners with different areas of exper- • Specific technical tailor-made support to start-ups is tise: New Ventures with knowledge of developing incu- costly and time-consuming in administration (contracts bation programmes, Impact Hub Berlin with knowledge with providers) and should be taken care of by the startup on impact innovation, Inova Unicamp on innovation itself. In the framework of the incubation the specific and technology, and ITC with knowledge of international needs of the start-up need to be identified. markets. • Costs for mentors can be reduced by organising skype • The local availability of mentors and technical advisers. sessions. • A public partner interested in this kind of activity, which is also interested in supporting future activities and the further development of an ecosystem conducive to biodi- Further information versity businesses. and GIZ contact The navigator is available at: http://proam- Furthermore, lessons learned are as follows: biente.org.pe/publicacion_nota.php?bus- • It is important to carefully design the incubation car=&tid=0&cid=0&rid=0&oid=0&pagina=2&id=79 programme (selection criteria, robustness of start-ups, technical preparation, etc.) from the start and plan with For further information, contact: Lena Katzmarski sufficient time for start-ups to develop their business (lena.katzmarski@giz.de) model, meaning fewer technical sessions and more men- 78 | Green and Inclusive Business Toolbox | Small and Medium-sized Enterprise Adaptation to Climate Change Small and Medium-sized Enterprise Adaptation to Climate Change In many developing countries, the private sector mainly comprises small and medium-sized enterprises (SMEs). SMEs play a key role in providing jobs and income opportunities and supplying goods and services to the popula- tion. However, one major challenge they face in developing countries is extreme weather events and slow changes such as a rise in mean temperatures, sea-level rise or shifting seasons. For various geographical, economic and societal reasons, developing countries and emerging economies are particularly affected by the adverse effects of climate change. Impacts like water scarcity, flooding and heat waves, etc. can directly and indirectly hamper and interrupt business operations and supply chains, thus threatening business continuity, jobs, livelihoods and economic growth. Concerted efforts by the public sector, the private sector, and civil society are necessary to tack- le this global threat by building the resilience of societies and economies. The Climate Expert Approach developed by the GIZ programme Strengthening the Capacities of the Private Sector to Adapt to Climate Change (PSACC) on behalf of the German Federal Ministry for Economic Cooperation and Development aims to provide approaches and tools which strengthen SMEs’ resilience. These were tested in a number of countries, including Costa Rica. THE CLIMATE EXPERT APPROACH IN COSTA RICA Overview Type Capacity development Complexity Low Expertise High Cost €€€ Time frame 2 years Sustainability dimension Green Phases Start Scale Tool in brief Projects can use the Climate Expert Approach to support SMEs in identifying adaptation needs and measures as well as implementing and financing these measures. It consists of a modular step-by-step process that is sup- ported by five ready-to-use service packages: awareness raising of companies, training of consultants, company assessments for consultants, company assessments for companies and training in industrial zones. The process is summarised in the following chart. Small and Medium-sized Enterprise Adaptation to Climate Change | Green and Inclusive Business Toolbox | 79 Climate Expert Approach CONSTANT EXCHANGE WITH MULTIPLIERS Training of Identifi- consultants and Conducting Conducting a cation of multipliers Identification climate risk finance lab with Financing vulnerable of common assessments and SMEs of adaption sectors and adaption Awareness developing multipliers and mesaures relevant measures raising of adaption finance sector multipliers companies Study of the local offer of financial products for SMEs in the area of green business, sustainability, renewable energies, etc. Tool objective as well as bilateral GIZ projects. It was decided to start The Climate Expert Approach aims to: in Monteverde as a vulnerable cloud forest destination, • raise awareness among private sector actors about the where the tourism sector is comprised of SMEs, mostly relevance of adaptation to climate change for business family-run businesses. During the workshop it was de- survival and growth; cided that the stakeholders on the national level would • assist SMEs to assess climate change-related risks and continue to accompany the project as a steering and develop a suitable adaptation strategy; consultative committee that would be informed regu- • train multipliers and consultants to assist SMEs in the larly on progress as well as involved in decision making. development of an adaptation strategy; At the same time, the committee would connect the • facilitate access to finance for adaptation measures for project to the local tourism stakeholders in the pilot SMEs. destinations. Target group 2. Awareness raising of companies The main target group is SMEs in developing countries After an in-depth vulnerability study of the tourism and countries in transition, across various sectors and sector in these pilot destinations, awareness-raising industries. Secondary target groups are business and sec- workshops were held with SMEs and other local stake- tor associations, chambers of commerce, consultants and holders. In a second step, the participants were invited other multiplier organisations in the private sector. to apply to have risk analysis and adaptation strategy assessments conducted that would serve as case studies Tool description for other companies in the sector. Four companies were In 2015, PSACC implemented the Climate Expert Ap- selected: A coffee farm that offers coffee tours as well as proach in collaboration with the tourism sector in Costa educational tours on sustainable agriculture; a com- Rica using the following steps: pany that offers cabins for tourists; lastly Monteverde Institute, an educational institute that offers study tours, 1. Identification of vulnerable sectors and relevant courses, internships and research stays was selected to multipliers have two staff members accompany the project team in In a vulnerability analysis the most vulnerable areas the pilot assessments to then conduct a self-assessment in Costa Rica were matched with the most important as well as an assessment with another applicant, a farm tourist destinations. The results and the way forward that offers horseback-riding tours. This way all interest- were discussed at a stakeholder workshop that brought ed companies could be served while transforming the together national tourism chambers, business associa- Monteverde Institute into a local multiplier. tions in the tourism industry, the Ministry of Tourism 80 | Green and Inclusive Business Toolbox | Small and Medium-sized Enterprise Adaptation to Climate Change 3. Training of consultants and multipliers In a next step, consultants and multipliers on a national How can industrial zones adapt to climate change? level were trained to use the Climate Expert Tool to assist The case of Morocco SMEs with analysing their climate change related risks In Morocco, the Climate Expert Approach was used to as well as developing an adaptation strategy. The trained build the resilience of the Industrial Zones Ait Mel- consultants committed to conduct a Climate Expert loul (IZAM), which is located, which is located near Assessment with a company of their choice. Based on the Agadir. Moroccan industrial zones are highly vulnerable adaptation measures identified by those assessments and to climate change. Erratic and heavy rainfalls, more the pilot assessments, a catalogue of common adaptation frequent heat waves and severe droughts belong to the measures in the tourism sector in Costa Rica was com- most pressing climate phenomena, which have negative piled. effects on the businesses. This results in floodings of company premises, damages of infrastructures and 4. Finance lab for SME climate adaptation transport routes, water scarcity and weak energy supply and causes interruptions of the value chain. Following Many adaptation measures require financing but SMEs a practical bottom-up approach Climate Expert aimed are not fully aware of the financing offers for SMEs from at helping industrial managers in dealing with adaption the finance sector, nor is the finance sector aware of the to climate change in Ait Melloul: After a climate-risk adaptation measures for SMEs. To tackle this issue, a assessment a concrete action plan for climate change study was conducted on the financing available to SMEs adaptation was developed. The Regional Council has from private and public banks as well as other financing integrated the adaptation plan in both the regional institutions and NGOs. It revealed that a wide variety of plan of the requalification of the IZAM and in the credit lines for SMEs is available, some of them focusing Territorial Program against Global Warming as well on renewable energies, sustainable tourism, and other as in the Regional Development Programme. By now related topics that can be accessed to finance adap- the implementation of adaption measures is ongoing. tation measures. Further, a finance lab was organised Concerning the water stress issue on the level of the that brought together representatives from the finance Industrial Zones Ait Melloul a rainwater collection will be installed and the cleaning and maintenance system sectors, SMEs and the trained consultants and multipli- of the water drainage system will be improved. On er organisations. As a result of the event several SMEs company level, investments in water recycling systems received credit. are recommended and already ongoing. Based on the experiences of Ait Melloul, a training for industrial zone Project set-up managers was developed and presented to the Asso- The project activities in Costa Rica were part of a global ciation of Eco-Industrial Parks in Morocco. The guide programme, which was managed from GIZ headquarters. for managers of industrial zones to adapt to climate A colleague at headquarters collaborated with a national change was launched during the conference COP 22 colleague in Costa Rica and an international consultant. in November in Morocco and is available here: http:// Within Costa Rica, the steering committee, consisting of www.climate-expert.org/en/home/tools-trainings/ national tourism chambers and business associations, the guide-for-industrial-zones/ tourism ministry and bilateral GIZ projects, became the For more information please contact: main driver of the project guaranteeing sustainability of Sylvia Maria von Stieglitz (sylvia.stieglitz@giz.de) the results after the pilot project ended. National consult- ants were hired to undertake the vulnerability studies. Small and Medium-sized Enterprise Adaptation to Climate Change | Green and Inclusive Business Toolbox | 81 Tasks and timeline completed in a shorter period of time. Likewise, projects Since the project activities were part of the global project, may also choose to implement only parts of the process, the main activities were held in greater at longer time e.g. awareness raising. The main activities outlined below spans intervals than otherwise necessary in order to meet were supplemented by additional meetings, presentations the global teams’ availability for missions. A project that and marketing activities on the ground by local staff. is independently implemented in a country may take be Work plan tasks Q1 Q2 Q3 Q4 Q5 Q6 Q7 (in quarters /months) Vulnerability study of pilot country First stakeholder workshops on na- tional level as well as destinations In-depth vulnerability study of tourism sector in pilot destinations Awareness-raising workshops in pilot destinations Two pilot assessments and development of case studies Training of consultants and multipliers Conducting further assessments Study on the financial offers for SMEs Finance lab Financing of adaptation measures Steering committee meetings 82 | Green and Inclusive Business Toolbox | Small and Medium-sized Enterprise Adaptation to Climate Change Costs Results and legacy Costs vary greatly depending on the salaries of national The following results were achieved in Costa Rica: staff, local consultants’ fees, the willingness of partners to • 550 people in the tourism industry were reached invest in the project, the extent to which only parts of, or through awareness-raising activities. the whole process is replicated, and other factors. • 16 consultants and 10 representatives of multiplier Main cost items are shown below. organisations in the tourism industry were trained to conduct Climate Expert Assessments with SMEs. Items • 10 Climate Expert Assessments were conducted with SMEs in the tourism sector. 1 national staff (min. 70%) for two years to implement • To date, several companies have implemented adapta- the whole approach tion measures or are in the process of securing funding. Consulting support (see below according to different items) The legacy of the Climate Expert Approach in Costa Rica: • CANAECO, the ecotourism chamber, started conducting Development of studies awareness-raising workshops among their members • Baseline study on vulnerability of countries’ economic and offering Climate Expert Assessments shortly after sectors (20–50 person-days) the project ended. • If appropriate, in-depth vulnerability study of a certain • FUNDECOOPERACIÓN, a fund for sustainable de- sector or region (30–50 days) velopment that gives credit to SMEs accompanied • Study on the local finance sectors’ offers to SMEs with technical assistance, included the Climate Expert (20–30 consultant days) Assessment into their credit appraisal process. Workshops • The Ministry of Tourism acknowledges a Climate Expert • Awareness-raising workshop ½–1 day, (location, Assessment as an activity to reach sustainability and catering, printing materials, transport allowances for positively evaluates this as part of a company’s Sustaina- participants, 3–5 consultant days per workshop) ble Tourism Certification. • Finance lab ½ day (location, catering, transport • The Climate Change Department of the Ministry of allowances for participants, 3 consultant days per Environment integrated the steering committee as a finance lab) representative body of the tourism sector into the Na- • Steering Committee meetings (location, catering) tional Adaptation Planning process. Three-day training for consultants and multipliers (5–8 consultant days, location, catering, printing of Success factors and lessons learned materials, in some countries transport allowances and Success factors include: accommodation for participants) • Political and private sector stakeholders on the national level should be involved from the beginning, including actors who are already engaged in issues such as In Costa Rica, the Ministry of Tourism funded the sustainability, mitigation and green growth. training for consultants and the finance lab because it • Cooperation was most successful where the impacts was convinced of the added value of the project for the of climate change were already felt. In areas that were tourism industry. not yet affected, it was hard to convince companies to engage in adaptation when other problems were more pressing. • It is important to adapt language to the business com- munity to increase understanding of the concept among the partners. Small and Medium-sized Enterprise Adaptation to Climate Change | Green and Inclusive Business Toolbox | 83 • An integration of the Climate Expert Approach as an instrument for consultancy services can work where there is an existing consultancy market. Experienced and acknowledged consultants can integrate it into their service portfolio and offer it to their clients. • In order to achieve financing for adaptation measures, the financial sector needs to be involved. Often SMEs Further information are not aware of the financial instruments available and and GIZ contact the financial sector is unaware of adaptation efforts of For more information visit: www.climate-expert.org. SMEs. Case studies, training materials, the Climate Expert Tool and other information can be downloaded from the Lessons learned: website. • Cooperation in the pilot destinations requires good Visit www.adaptationcommunity.net for a discussion organisation of the local community. on various aspects of adaptation including private • A lack of local climate change data and scenarios can sector adaptation. hinder awareness-raising efforts on the ground. • Whereas mitigation is a concept that is easily under- To find out more about the Climate Expert Approach stood by everybody, the concept of adaptation is more and its implementation in Bangladesh, Costa Rica, abstract and not necessarily understood, especially Morocco, Rwanda and its replication in other countries when the effects of climate change are not yet felt. contact: Therefore, awareness-raising on adaptation requires Angelika Frei-Oldenburg, Programme Head more effort than on mitigation. angelika.frei-oldenburg@giz.de Finance Entrepreneurs’ Guide to Impact Investing | Green and Inclusive Business Toolbox | 85 Entrepreneurs’ Guide to Impact Investing Scaling social enterprises requires financing and external investments. This often comes at a point in time, when accessing traditional forms of capital can be a challenge, for instance when enterprises still lack collateral, tradi- tionally a precondition for obtaining credit. The emergence of a number of so-called Impact Investors has helped to address this issue. Impact Investments are commonly defined as investments that generate social and environ- mental impact alongside the financial return. However, Inclusive Businesses are often challenged by the decision when and which kind of capital to raise, and which investors to approach for their diverse financing needs (grants, seed funds, angel investments, impact oriented venture capital as well as debt). Entrepreneurs often do not fully grasp which preparations are needed, and which investors are most appropriate for them. This also involves under- standing the implications of investor involvement and return expectations. Creating a guide to Impact Financing can support entrepreneurs overcome information asymmetries. AN ENTREPRENEURS’ GUIDE TO IMPACT ment. It provides contacts as well as a sample term sheet INVESTING FOR SOCIAL ENTERPRISES IN used by investors. In addition to that, the guide provides INDIA a basis for incubators and other support providers to help inclusive businesses in their efforts to raise finance. Overview Tool objective Type Finance The entrepreneurs’ guide to impact investing aims at: Complexity Low • helping entrepreneurs to understand the requirements Expertise High for getting investments and prepare for the process of Cost € raising funds; Time frame 3 months • providing transparent and easy access to detailed infor- mation regarding the investors’ propositions, funding Sustainability dimension Green and inclusive strategies and records to enable better match-making Phase Scale across investors and investee companies; • increasing the number of enterprises that have access to Tool in brief risk capital by addressing the main information asym- In the framework of the ‘Responsible Enterprise Finance metries between entrepreneurs and impact investors. Programme’, GIZ India collaborated with a social entrepre- neur in the field of solar technology provision, a pioneer in Target group raising investment to take his green and inclusive business The direct target groups for the guide include Indian green model to scale. and social enterprises / inclusive businesses, in particular early stage entrepreneurs, looking for financing. At the He developed a hands-on guide to Impact Investing same time, the guide can be used by incubators and other in India for early stage entrepreneurs and potential support providers in the field of inclusive business for the change-makers. More specifically, the handbook outlines development of their support services. investment types, as well as investor requirements and expectations. It attempts to de-mystify the language and Tool description requirements of typical impact investors that entrepre- De-mystifying Impact Investing – An Entrepreneurs’ Guide neurs will encounter while raising funds. In addition, it was developed in cooperation with the founder of an offers support to entrepreneurs in approaching the right inclusive business. The information in the handbook was investors for their particular needs, depending on their collected through interviews with other inclusive busi- stage of development, and asking the right questions to be nesses and investors and paired with the author’s profes- able to understand the implications of investor involve- sional experience. 86 | Green and Inclusive Business Toolbox | Entrepreneurs’ Guide to Impact Investing The resulting 141-page guide contains the following main chapters: • Types of Investment Instruments. The chapter outlines the advantages and disadvantages of debt, equity and quasi-equity for enterprises based on their needs. De- pending on their activities, an enterprise needs different types of investments. • When to Raise Investments, How Much and on What Terms? Depending on the maturity stage of the enterprise and the business model, entrepreneurs need • The Appendix contains an Impact Investment Map, to carefully select the funds to which they apply. This which lists all relevant investment companies at a glance, part of the guide describes the stages, the investment and a Sample Term Sheet frequently used by investors. process, valuation of an enterprise and term sheet con- The guide will be released to entrepreneur networks, ditions. Furthermore, it contains common due diligence incubators and other relevant multipliers. requirements. • Impact Investors in India. The Indian social enterprise Project set-up environment has seen an exponential increase in impact While the consultant delivered the study, the GIZ office investors. This section provides detailed information on India oversaw the project, supported the research and selected investors and their characteristics, including provided further contacts, comments and feedback. Two fund size and cycle, return expectations, and focus areas. researchers assisted the consultant. Tasks and timeline Work plan tasks W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 (in weeks) Desk research and survey design Survey and Inter- views with 20–25 Investors Data aggregation and analysis Draft report Final report Entrepreneurs’ Guide to Impact Investing | Green and Inclusive Business Toolbox | 87 Costs Success factors and lessons learned Consultancy services were provided by the author and two • The collaboration with an entrepreneur, who had expe- researchers. The publication’s design, layout and printing rienced the challenges in raising finance himself, proved costs will depend on its print run, and need to be consid- to be the main success factor for the development of a ered in addition to the consultancy services. guide targeted at the practical challenges of entrepre- neurs. Items • In order to reach as many entrepreneurs as possible, cooperation with incubators as well as other support Consultancy services: structures is key. In the next step, it is important to approx. 200 man-hours, divided between the author think about how they can best be supported in bringing and two researchers the guide to as many entrepreneurs as possible. Design, layout and printing of publication Dissemination Further information and GIZ contact Results and legacy De-mystifying Impact Investing – An Entrepreneurs’ The guide consists of two parts: while chapter 2 and 3 are Guide, written by Rustam Sengupta, is available at: held largely general so that they could also be applied in https://www.giz.de/de/downloads/giz2015-en-mysti- other contexts; chapter 4 focuses directly on the Indian fying-impact-investing-india.pdf context by providing entrepreneurs with information on Indian Impact Investors. This structure enables the guide Invest. Catalyze. Mainstream. The Indian Impact Invest- to act as a basis for similar documents in other countries. ing Story is a detailed study on the development of the impact investment industry in India and was commis- In order to facilitate dissemination of the guide, short sioned by GIZ in 2014. It is available at: interactive sessions can be held in partnership with incu- www.intellecap.com/sites/default/files/publications/ bators. These sessions are aimed at helping entrepreneurs IIIR_Final%20report_May6_low_res.pdf identify whether Impact Investing is an option for them http://intellecap.com/publications/invest-cata- and which investors may be best suited to help taking lyze-mainstream-india-impact-investing-story their idea to scale. In addition, other support and financ- ing options for scaling inclusive businesses can be briefly For more information on this work, contact the bilateral introduced. Following the sessions, a structured interac- programme Responsible Enterprise Finance Programme, tion with the incubators and participants might be useful India. to find out what further training activities would be most useful for them. Policy Local Approach to Supporting Green Businesses | Green and Inclusive Business Toolbox | 89 Local Approach to Supporting Green Businesses Many green business models are not only to be found in a country’s capital, but also in the regions or rural areas. For businesses located outside the main entrepreneurial hubs, it is even more difficult than usual to find adequate technical support from public or private business service providers. Furthermore, government at the regional level lacks experience in promoting green business and there is seldom a clear support structure in place with a clear contact point for businesses to reach out to. Moreover, environmental authorities lack knowledge about business models and how to transform environmental challenges into business opportunities. Business opportunities on the local level remain unused, because there is a lack of awareness and little collaboration between local stake- holders. With Ventanillas Verdes (Green Business Windows) a local structure was created in Colombia to raise awareness about green business potential and support businesses to respond to market opportunities. VENTANILLAS VERDES Tool objective (GREEN BUSINESS WINDOWS) IN COLOMBIA The overall objective for PRODES to support Green Business Windows was to create a regional approach to support green businesses that could be replicated in a Overview number of different regions. In detail, PRODES’ objectives Type Policy were as follows: Complexity Medium • Coordinate and guide the different regional stakehold- Expertise Medium ers in the implementation of the MADS Regional Green Cost € Business Programme (RGBP). Time frame 8 months • Position the RGBP at the regional level, follow up on commitments, evaluate progress and make appropriate Sustainability dimension Green adjustments. Phases Adopt Scale • Create and consolidate continuous and lasting strategic alliances with key players that contribute to promoting and positioning green businesses in the region. Tool in brief • Generate statistics to measure the RGBP’s contribution In 2014, the Ministry of Environment and Sustainable De- to the economic development of the region and the velopment of Colombia (Ministerio de Ambiente y Desar- conservation of its natural resources. rollo Sostenible – MADS) started to build up Green Business Windows in the regions – a local support structure for Target group green businesses that contributes to making Colom- The guide that explains how to build up Green Business bia’s economy more sustainable. This was part of MADS’ Windows is written for regional environmental authori- Regional Green Business Programme (Programa Regional ties or strategic partners who assume the role of leading de Negocios Verdes). The GIZ programme Promotion of and coordinating the promotion of green businesses in Sustainable Economic Development (Promoción del De- their respective regions. The secondary target groups, sarrollo Económico Sostenible – PRODES) cooperated with i.e. of Green Business Windows, are companies, entre- the Ministry to strengthen and replicate the concept of preneurs, and in some cases consumers as users of the regional Green Business Windows that promote green en- services offered by Green Business Windows. trepreneurship on a regional level throughout the country. With the ‘Guide for the implementation of regional green business programmes’, a support framework was devel- oped by MADS, that can easily be transferred, adapted and replicated together with regional stakeholders. 90 | Green and Inclusive Business Toolbox | Local Approach to Supporting Green Businesses Tool description a. Develop a virtual course on green businesses for the Green Business Windows forms part of the National Green staff of the environmental authorities. In the Colombi- Business Plan in Colombia (Plan Nacional de Negoci- an case, one of the partners in the Green Business Win- os Verdes) and Green Business Regional Programmes dow was the Ministry. It designed a course focused on (Programas Regionales de Negocios Verdes). Depending on the different strategies to promote green businesses and the regional context, Green Business Windows can either how to monitor the technical assistance provided. This be established as technical management groups solely course took 80 hours and was only for public workers within the regional environmental authorities, or through who were connected with environmental institutions. an alliance with a business organisation that focuses on b. Develop a course on structuring green business supporting green business. models for entrepreneurs. In Colombia the course was designed, implemented and transferred nationwide The guide describes in detail which steps to follow when through the National Service of Learning (Servicio setting up a regional Green Business Window. It focuses Nacional de Aprendizaje), a public institution focused on on strategic key points of action, such as stakeholder man- the development of programmes of professional train- agement, setting up a communication strategy, technical ing. This course took 60 hours and was open to anybody assistance to entrepreneurs, marketing mechanisms and interested in the topic. financial incentives for green businesses as well as mon- c. Establish a green business baseline for the region itoring and evaluation. The guide contains management using a set of criteria that define green businesses. The tools, case studies, lessons learned and other relevant data collected by the environmental authorities for the information that can help to set up and run a Green Busi- baseline study include, for example, the overall number ness Window. of green businesses in the region, their environmental, First and foremost, there needs to be a person nominated social and economic performance, and support offered within the regional environmental authority to act as to these businesses to position themselves as green regional coordinator of the Green Business Window. This businesses. person takes responsibility for coordinating the following 4. Providing access to markets. Depending on the budget steps in the suggested order: available to the Green Business Window in a region, 1. Overall planning. A multi-stakeholder workshop is there are different suggestions given in the guide on organised to develop an annual action plan together how to improve the market access for regional green with all relevant local actors. Further meetings will businesses: follow – every second month – to monitor the progress a. Participation in business conferences focusing on in implementing the annual action plan. green business 2. Create a Green Business Window committee. This b. Inclusion and promotion of green products at fairs or involves identifying, convening and facilitating rela- farmers’ markets tionships of trust between the relevant local actors. The c. Facilitate green business alliances with large companies committee is needed to build on the various capacities d. Financial incentives to promote green businesses. and capabilities of the different actors for the imple- 5. Raise awareness for green business. A business ideas mentation of the Green Business Windows work plan. competition (Concurso de Emprendimiento Verde) was 3. Build up regional technical expertise. To adequate- implemented to promote business ideas with positive ly support green businesses in the region, technical environmental and social impact. The entrepreneurs capacity within the environmental authority and other received technical assistance to develop their business relevant regional organisations needs to be developed. plans. Winners received technical assistance during The guide includes the following steps to train environ- their business incubation processes. The competition mental authority staff as well as other stakeholders: has been an inter-institutional cooperation strategy be- tween the environmental authority, business incubators and PRODES. Local Approach to Supporting Green Businesses | Green and Inclusive Business Toolbox | 91 Project set-up Costs Green Business Windows was part of the implementation The setting up of regional Green Business Windows ties of the National Green Business Plan in Colombia and up significant resources. Costs can be reduced by using Green Business Regional Programmes of the Colombian resources that different stakeholders bring to the table Government. PRODES supported the operationalisation as contributions in kind (e.g. venue for events). The main of Green Business Windows, mainly by developing a guide items of expense are the following: that describes the approach to setting up Green Business Windows in different regions and making this approach Items replicable. Implementation started in three regions with the respective environmental authorities (Meta, Norte Development and training for the guide Santander and Caquetá). This experience is now in the Training course on green business process of being transferred to the environmental author- Contract for one professional as coordinator of Green ities of the 32 other administrative regions of the country. Business Windows’ activities for the first year MADS is responsible for the national monitoring process- es and coordination of the technical assistance for green Business ideas competition and technical assistance to businesses. businesses Participation in trade fairs and conferences Task and timeline The above-mentioned annual action plans for Green Business Windows foresees work throughout the year in different areas. The preparation of the guide itself has taken 8 months. Work plan tasks M1 M2 M3 M4 M5 M6 M7 M8 M9 M10 M11 M12 (in months) Planning Stakeholder facilitation Technical support Access to markets Ideas competition Monitoring and evaluation 92 | Green and Inclusive Business Toolbox | Local Approach to Supporting Green Businesses Results and legacy The following results have been identified so far: Further information • The guide, with its tools for the promotion of green and GIZ contact businesses, has been taken up and adopted by poli- For further information on Green Business Windows, cy-makers (adopted by MADS as an operational instru- the following resources are available: ment of the National Green Business Plan). Guide for the implementation of regional green business • A green business model database has been established programmes: http://www.minambiente.gov.co/imag- for the two regions Meta and Norte de Santander. This es/NegociosVerdesysostenible/pdf/herramientas_de_ database contains more than 100 business models. regionalizacion/LIBRO_FINAL_IMPRESION_ALTA2_ • The green business model ideas competition has been Version_2_Modificado_06_01_2016.pdf. successfully implemented and has been documented in a manner that allows quick replication. Guide for defining and selecting green businesses: • More than 1,000 entrepreneurs took part in the course http://www.minambiente.gov.co/images/Negoci- on green business, which has been developed together osVerdesysostenible/pdf/criterios_negocios_verdes/ with SENA and implemented in 42 national chapters. criterios_actualizado_2016/Guia_Verificaci%C3%B3n_ • More than 150 officials on the national level partici- Criterios_NV_V12__26_01_2016.pdf. pated in the virtual course on green business that was Green business ideas competition: designed for the environmental authorities. https://www.youtube.com/watch?v=MObqmF3TBSI Success factors and lessons learned For further information, contact: • Green Business Windows build upon the experience and Alexandra Ospina (alexandra.ospina@giz.de) resources of local stakeholders and are implemented in a participatory manner. • The guide includes detailed and hands-on information for the Green Business Window manager on how to deal with everyday challenges, such as communicating and raising awareness about green business models or managing a group of stakeholders. • The approach makes use of the environmental author- ities, which are firmly anchored in the region but lack knowledge and experience as regards business opportu- nities. • In order to promote green business models a set of cri- teria was developed that can be used to define and select green businesses. • The Green Business Window approach is easily repli- cable and can be transferred to other regions with little effort. Strategic Study on Setting the Framework for Inclusive Business | Green and Inclusive Business Toolbox | 93 Strategic Study on Setting the Framework for Inclusive Business Inclusive business (IB) models are increasingly the focus of government and donor attention. Policymakers are particularly interested in promoting market-based approaches that contribute to poverty alleviation and in the role these can play to stimulate the system. Beyond finance, policymakers can provide a broader set of policies to overcome barriers to IB models and make markets work for such approaches. Policymakers seeking to develop a strategy to support inclusive business in their country are advised to perform a stocktaking exercise to ascertain the status quo of IB in the country and to benchmark this against the framework conditions of other countries. Based on this analysis, policymakers can then develop a strategy to define and improve IB policies. INTERNATIONAL BENCHMARK STUDY ON • generate specific policy recommendations to promote INCLUSIVE BUSINESS IN MOROCCO IB models in Morocco. Overview Target group The target audience for the study was Morocco’s Minis- Type Policy try of General Affairs and Governance, which was GIZ’s Complexity Medium political partner for the BMZ-funded Strategy for Social Expertise Medium Enterprises project. It was anticipated that the Ministry Cost €€ would use the study as a key reference to further develop Time frame 6 months its strategy in this area and to design selected policy measures. The secondary audience for the study was local Sustainability dimension Inclusive institutions and businesses interested in developing the IB Phase Start ecosystem within the country. Tool description Tool in brief The study was developed with a German university in In 2013, on behalf of the Kingdom of Morocco’s Ministry consultation with political partners who contributed to of General Affairs and Governance, GIZ commissioned its design and content. The methodology for the study a study to develop recommendations on the creation of included desk research and stakeholder interviews. a strategy to promote IB models in the country. The re- search team conducted desk research and interviews with The resulting 32-page report consisted of the following policymakers, and their resultant study explored different content: international examples of IB policies. The study also pro- • Why inclusive business? — This explored the impor- vided a framework for analysing the market maturity of tance and benefits of inclusive business and the neces- IB, which the research team used to define the Moroccan sity of government support for the development of its situation and thus to give specific policy advice in accord- ecosystem. ance with the local context. • A clarification of the concept – This section explained how IB manifests in different world regions, provided a Tool objective definition of IB for the Moroccan context and detailed The study on the policy environment for IB aimed to: approaches similar to IB as well as different IB approaches. • define and clarify the concept of IB and provide a framework for its definition in Morocco; • provide an overview of successful policies that foster the development IB ecosystems; 94 | Green and Inclusive Business Toolbox | Strategic Study on Setting the Framework for Inclusive Business • International policy best-practice examples — This part of Project set-up the report considered typical barriers to the development The research was commissioned and supervised by a team of IB, and how policy interventions can help overcome member from GIZ’s Advisory Fund for Structural and challenges and facilitate its market development. It then Regulatory Policies project in Morocco. The research team provided five in-depth examples of policy interven- from the University of Hamburg consisted of two individ- tions related to different key challenges and, for each, uals, one based in Germany and one in Morocco. provided information on: the country context and stage of market development; the definition of IB; objectives Tasks and timeline of the policy and target group; the policy design and The research was carried out over a 10-week period. The implementation process; results; learning, challenges entire process, including creating the terms of reference and opportunities. and the bidding and contracting process, took approxi- • Recommendations for Morocco — The report’s final mately six months. chapter provided: conclusions on different policy measure options that correspond to different stages of Work plan tasks M1 M2 M3 M4 M5 M6 market development (creation, growth and maturity), (in months) recommendations in the Moroccan context, and a pro- cess framework describing the steps of strategy Terms of refe- development. It also proposed questions that could in- rence drafting form discussions at a national workshop on the theme. Contractor selection The study was produced in English and translated into French. Research International policies highlighted in the study Country Key challenge Policy Costs addressed intervention The project cost included 27 person-days of consultant United Kingdom Legal and Community time, and travel and translation costs. GIZ staff time, cov- regulatory frame- interest ered through core project funding, was required to set up work companies the contract and supervise the study, including organising Senegal Financial Impact consultations with and presentations for local project resources investment working group partner institutions — this is not included below. Colombia Access to markets Inclusion of the private sector in Items poverty reduction strategies Consultancy services: 27 person-days Egypt Organisational Incubator for Travel expenses capacity innovation building collaboration Translation India Education International training pro- gramme on inclu- sive business Source: Scheck, B. and Lütjens-Schilling, L. (2013), International Benchmark Study on Social Entrepreneurship (unpublished). Strategic Study on Setting the Framework for Inclusive Business | Green and Inclusive Business Toolbox | 95 Results and legacy A number of useful lessons were learned when carrying The study was presented to the partners at the Ministry. out the study: However, due to political changes in the country, the • At the very outset, it is useful to clearly understand how project’s partner ministry underwent changes, as did (for local partners define and understand the concept of political reasons) its priorities. This meant that work on IB IB. In Morocco, a Muslim society, charity is anchored ended up being dispersed among a variety of other insti- strongly in the value system and the concept of IB tutions. Nevertheless, the study has been used by several can be confused with the charitable activities that are think tanks, and the topic may be taken up by Morocco’s typically performed by ‘the rich’. In this case, IB models National Agency for the Promotion of SMEs. need to be differentiated from religiously motivated charity. However, to mainstream understanding of this Success factors and lessons learned difference, it is necessary to invest time and money in The team identified the following success factors of the clarifying and promoting a mutual understanding of the study: concept. • The study addressed a topic that was relevant and time- • Providing practical examples of IB policies that could ly for local partners. be applied in Morocco was valuable as, in the political • The research team consisted of two international environment at that time, there were demands for the consultants: one based in Germany and one based in private sector to take greater responsibility in address- Morocco. Their combination of thematic expertise, ing the challenges of development and poverty. international perspectives and local understanding enriched the study content. • Using an academic team and renowned university to carry out the research meant local political partners Further information understood that the study findings were credible. and GIZ contact The study has not been publicly released; however, it can be made available upon request. A publication on the same theme that is publicly availa- ble (and was funded by BMZ) is Endeva’s Inclusive Business Policies — How governments can engage businesses in meeting development goals (2013). Available at: http://www.enterprise-develop- ment.org/download.ashx?id=2297 For more information or to request copies of the above- mentioned documents, contact the sector project ‘Sustain- able Economic Policy and Private Sector Development’. 96 | Green and Inclusive Business Toolbox | Value Chain Selection – Integrating Economic, Environmental, Social and Institutional Criteria Value Chain Selection – Integrating Economic, Environmental, Social and Institutional Criteria One approach to promoting green and inclusive businesses is by choosing a value chain approach. This means first and foremost choosing the right value chains, the ones through which a development programme might have the greatest impact on economic, environmental, social and institutional development goals. Partner countries need efficient value chains and integration into global value chains in order to be competitive and to create income and employment within the country. They can be active in international markets by providing input for certain products and thereby integrate into global value chains. Development cooperation supports partner countries in value chain development, since most of the production comes from small and medium-sized enterprises and their promotion contributes to poverty reduction. An initial step in value chain development is to assess various potential sectors or value chains to determine in which value chains a project might have the greatest impact through interventions according to specific develop- ment goals (economic, environmental, social and institutional) and project mandates. ‘Guidelines for Value Chain Selection’ provides tools for use during the initial (design and formulation) phase of projects in order to compare and prioritise possible value chains for promotion by carefully comparing their economic, environmental and social impact. Criteria are proposed for each impact category. The selection tools provide the option to give a weighting to each selection criteria and thus help to choose those economically viable value chains with particular relevance to green or inclusive goals. ASSESSMENT OF THE FURNITURE AND THE Tool in brief ORGANIC WASTE RECYCLING VALUE CHAINS There was no comprehensive or systematic methodology IN YEMEN for combining the four dimensions (economic, environ- mental, social and institutional) for sustainable develop- Overview ment in the value chain selection process. These guide- lines have been developed to fill that gap. By integrating Type Policy the different criteria, they offer a holistic and structured Complexity Low approach to value chain selection. The tool was developed Expertise Medium by Fair and Sustainable Advisory Services GIZ on behalf Cost €€ of the BMZ and the International Labour Organization’s Time frame 5 months (ILO) Market Systems Development for Decent Work Sustainability dimension Green and inclusive project ‘the Lab’. Several cooperation projects participated in the development and best practices and results were Phase Start collected through staff interviews in over 20 countries. The tool should be applied in the design and formulation stage of a project or at the start of a project when deciding which value chain to promote. This should be done jointly with the partner organisations. Value Chain Selection – Integrating Economic, Environmental, Social and Institutional Criteria | Green and Inclusive Business Toolbox | 97 The guidelines are complementary to the GIZ ‘ValueLinks’ Tool description methodology14 and the ILO’s guide Value Chain Devel- The guidelines help compare and prioritise possible value opment for Decent Work15 , but they may be also used as a chains for promotion by carefully comparing their eco- stand-alone product. The tool should be adjusted accord- nomic, environmental and social impact. By giving more ing to the purpose of its application, specific country and weight to green and inclusive criteria, it can be ensured local context and mandate of the project. The greatest that the finally selected value chains promote green and value will come from user application and documentation inclusive businesses. of their experiences and outcomes. The guidelines start with a rationale for linking the four Tool objective different dimensions in value chain selection and how Guidelines for Value Chain Selection links the four dimen- projects can benefit from taking a holistic approach. sions: economic, environmental, social and institutional Looking at the four dimensions in the selection phase dimensions and provides clear criteria and tools to help in provides a more comprehensive picture of the different the selection process. value chains under consideration, allowing the project to Traditional approach: Focus on economic New holistic/integrated approach: dimension, no inter-connectness The four dimensions are interconnected ONAL DIMEN TI TUTI S IO DI MIC MEN SI I NS N NAL DIM NO O TIO O E N U EC IT NS I NST ION N S IO N SOCIAL DI ME M DI E AL NS O N M E NT ION TOWARD HOLISTIC SELECTION V IR AND ANALYSIS EN I ME N AL D SI M ENTAL DI CI N M O SO ON EN IR ENV SION ON EC N OM SIO I C DI M E N Target group better assess the opportunities and risks at an early stage Potential users are development practitioners, govern- and ensure that these are not overlooked. Doing so makes ments and private sector initiatives, who wish to make it possible to make well-informed choices and to find well-informed decisions about which sectors and value innovative solutions and approaches for the value chain chains to intervene in for market development. development programme. In later stages of analysis, this assessment will help inform the design and implementa- tion of interventions. 14 ValueLinks 1.0 is currently being updated. Please find a draft outline of the ValueLinks manual 2.0 at http://www.valuelinks.org/index.php/material/manual. 15 Value Chain Development for Decent Work (2009), ILO. 98 | Green and Inclusive Business Toolbox | Value Chain Selection – Integrating Economic, Environmental, Social and Institutional Criteria These suggested steps are intended to assist in narrowing down a longlist of potential value chains to a shortlist and arrive at a final selection. This can be done through the development of a matrix with economic, environmental, social and institutional criteria, adjusted to the specific context and programme. The matrix template developed in the guidelines can be used throughout the selection process to guide data collection during desk studies and field investigations, to structure the stakeholder workshop and to serve as a checklist. In summary, the steps function as a roadmap, starting from the collection and analysis of data during desk Deciding to use a holistic approach in value chain selec- studies to field investigations and workshops and ending tion right from the beginning has implications for the with a final selection. rest of the process, including the questions asked, the stakeholders interviewed or engaged, the data collected The guidelines introduce tools for the value chain and the final choice made. Here an emphasis can be put on selection process, starting with the ‘list of criteria’, with inviting representatives from specific target groups, which key (minimum) selection criteria, in which all four dimen- bring in perspectives on environmental aspects or specific sions come together. social aspects. This will not only help make an informed value chain selection promoting green and inclusive The main tool presented is a table with key minimum cri- businesses, but will aid the next phase of the project, the teria for value chain comparison and selection, including in-depth value chain analysis. guiding questions, indicators and sources of data. The environmental and social dimensions are emphasised There are several issues that challenge the integration of here, due to these areas receiving relatively less attention these four dimensions in the value chain selection process, in past Private Sector Development projects. such as distinct stakeholder and donor priorities and agendas, limited time and resources, and a lack of data Some important issues (budgeting, duration of the process and expertise. These guidelines help with this process, and the availability of data) to be considered during the providing arguments, key questions and tools that may be selection process are discussed in more detail in the guide- used to empower project staff and engage market players, lines, which provide some practical tips and considerations. resulting in stakeholder buy-in. The annexes also provide practical tools, formats, examples Since many value chain development projects deal with of a completed scoring matrix and other sources that can multiple stakeholders, the guidelines provide some pros be used during the value chain selection phase. An Excel and cons of stakeholder engagement in the selection template of the overall scoring matrix is included. process, including when to engage and for what reason. The value chain selection process is divided up into Project set-up eight steps grouped into three phases (see also tasks and The value chain selection process can be undertaken by timeline): project staff or external consultants. For the detailed anal- • Preparatory phase (Steps 1–3) ysis of specific value chains and field investigation, local • Data collection phase (Steps 4–6) expertise might be required. Project partners need to be • Concluding phase (Steps 7–8) included right from the start through adequate communi- cation and, later, workshops. Value Chain Selection – Integrating Economic, Environmental, Social and Institutional Criteria | Green and Inclusive Business Toolbox | 99 Tasks and timeline with the total length and budget of the programme. The The selection process can take from 1 to 6 months, divided following table gives an indication of the work-days need- into eight steps and the time allocated should be balanced ed for each step: Work plan tasks Workdays M1 M2 M3 M4 M5 (in months) Preparatory phase Step 1: starting point: scope and mandate 1 of the programme Step 2: screening and shortlisting of 3 promising value chains Step 3: development of matrix with dimensions 2 and criteria, optional weighting and scoring Data collection phase Step 4: desk study 2 Step 5: instruction of field staff and local consul- 1 tants Step 6: field investigation 5 per value chain Concluding phase Step 7: workshop for validation and 2 recommendations Step 8: findings review, analysis 7 and recommendations 100 | Green and Inclusive Business Toolbox | Value Chain Selection – Integrating Economic, Environmental, Social and Institutional Criteria Costs Get a quick overview of existing data sources and The total budget is highly dependent on the project size, consider information gaps to make the best informed know-how of staff members and the number of shortlist- decision possible. Conduct additional primary research ed value chains. It consists mainly of time resources for if possible or consider dropping value chains if too little own staff and partners, fees and travels costs for contract- information is available or certain minimum thresholds ed external experts or field staff for field investigations. for key criteria are not met. • Communicate the selection process properly within Items the programme and to partners from the inception of the project. All parties should agree on the time and Project staff time or external consultant fees up to resources to be allocated to the selection process. 18 person-days + 5 person-days for field investigation • Making the selection jointly with partners and docu- per value chain, travel costs, accommodation menting the process well helps with the project imple- Catering and venue for 1-day workshop mentation. Facilitator for workshop if needed Recommendations and lessons learned: • The tools and matrices in the guidelines can easily be Results and legacy adjusted to fit the specific needs and context of a project. The guide is a practical tool that provides a wealth of While the criteria presented in the main text are those information and sample criteria for all four dimensions deemed fundamental by consulted value chain devel- (economic, environmental, social and institutional) to opers and practitioners, the list of criteria used should choose from. It thus helps project staff and partners to adhere to the project’s objectives, and thus may be make a well-informed choice when having to select one or added to or subtracted from accordingly. two value chains among many. • Choose only a limited number of essential criteria in each category, otherwise the exercise becomes too academic. In the GIZ Private Sector Development programme in • Although it is preferable to compare sectors and value Yemen, the tool was applied to assess the furniture and chains based on hard data and statistics, value chain organic waste recycling value chains to decide which value selection is not a mathematical exercise and qualitative chain to focus on. information and judgement are necessary. Despite the fact that criteria can be weighted and scored, the guide- Further testing is appreciated and will be accompanied by lines and tools take a qualitative approach overall, with the sector project Sustainable Economic Policy and Private comparisons mostly based on qualitative information; Sector Development. quantitative data are in any case often lacking. Success factors and lessons learned The guidelines identify a number of key principles for the Further information value chain selection process, including some key recom- and GIZ contact mendations and lessons learned. The tools can be adjusted according to the purpose of its application, specific coun- The full guidelines are available at: https://www.giz.de/ try, local context and mandate of the project. fachexpertise/downloads/giz2015-en-guidelines-val- ue-chain-selection.pdf The main success factors were: For further information contact the Sector Programme • Allocate sufficient financial resources to the selection ‘Sustainable Economic Policy and Private Sector Devel- and analysis phase. opment’, Stefanie Springorum (stefanie.springorum@giz.de) Promotion of Disability-inclusive Workplaces | Green and Inclusive Business Toolbox | 101 Promotion of Disability- inclusive Workplaces Data are showing that people with disabilities in low- and middle-income countries are ‘poorer than their non-disabled peers in terms of access to education, access to health care, employment, income, social support and civic involvement’16. People with disabilities are less likely to be engaged in employment than those without disabilities. Their low presence in the labour market often results from exclusion from adequate health and educa- tion services. Those who are in employment tend to draw lower wages and have fewer opportunities for profes- sional development. Employers are yet to adhere adequately to national legislation and international standards that promote inclusion of people with disabilities. Furthermore, employers who are interested in hiring people with disabilities lack adequate technical skills to make their facilities disability-inclusive. The ready-made garment (RMG) sector in Bangladesh is characterised by exponential growth and thus requires a vast pool of qualified workers. The core problem, assessed by relevant experts, is that factories, particularly those in the textile and garment industries, fail to adequately adhere to national laws, or to international standards that ensure workers’ rights, that include provisions for the inclusion of people with disabilities. Consequently, there was a window of opportunity for the programme Promotion of Social and Environmental Standards in the Indus- try (PSES) to increase the inclusion of people with disabilities in RMG factories by contributing to the setting up of an inclusive job centre (IJC) in Bangladesh. INCLUSIVE JOB CENTRE FOR THE GARMENT based on individual needs and competencies, and to pro- AND TEXTILE INDUSTRY vide a referral network. Overview The IJC aims to coordinate labour supply and demand of people with disabilities, training facilities, rehabilitation Type Policy service providers and potential employers in the RMG Complexity High industry. Following a tripartite approach connecting Expertise Medium government, the private sector and civil society, the IJC is Cost €€€ based on partnerships with five stakeholder groups: The Time frame 24 months Government of the People’s Republic of Bangladesh, the Sustainability dimension Inclusive private sector, the Bangladesh Skills for Employment and Productivity Project of the ILO, people with disabilities, Phase Adopt and civil society organisations. These stakeholder groups contribute to an inclusive workforce in different ways and on different levels. A factory assessment checklist, a train- Tool in brief ing manual, a handbook, human resources guidelines and In 2015, the PSES programme supported the establish- other related materials were developed to support stake- ment of an IJC in Dhaka to strengthen the capacities of holders to advance disability-inclusion in the RMG sector. government, the private sector such as business associa- Inclusion plans were developed to include the concrete tions, and civil society actors (NGOs and disabled peoples’ elements of designing policies that promote inclusion of organisations (DPOs)) in the textile and garment industries people with disabilities. to ensure economic and social inclusion for people with disabilities. The IJC serves as a platform for information sharing, advisory services, capacity building, job search 16 Groce, N., Kett, M., Lang, R., and Trani, J-F. ‘Disability and Poverty: the need for a more nuanced understanding of implications for development policy and practice.’ Third World Quarterly, 2011, 32(8), 1493–1513. 102 | Green and Inclusive Business Toolbox | Promotion of Disability-inclusive Workplaces Tool objectives The team members were introduced to one another The IJC has the following objectives: during a five-day study tour in Germany and workshop. • To establish links with referral networks for people with In addition, best practices on inclusion of people with disabilities for rehabilitation support in order to in- disabilities from Germany were introduced; a particular crease their participation in skills training and employ- focus was on the ‘Inclusive employment advisory services’ ment. (Integrationsfachdienste). The draft concept and steering • To improve minimum compliance standards in regards documents for the IJC were developed afterwards. PSES to disability-inclusiveness in factories, including their entered into a financing agreement with the Centre for the policies. Rehabilitation of the Paralysed (CRP), a national NGO, to • To promote employment for trained people with disa- establish and ensure that the IJC operates properly. bilities in the RMG sector. • To provide psychosocial counselling and job retention In a subsequent step the IJC was set up and the personnel services to people with disabilities. recruited. The following items were implemented by IJC staff: • Identification of people with disabilities for skills Target group training. People with disabilities were first identified by Main target groups of the IJC are: the community and their capacities were assessed by • people with disabilities who are interested in vocational leaders of DPOs via video conference with the profes- training and willing to work in the RMG industry; sionals placed in the IJC. The DPO partners were further • RMG factories in search of skilled personnel, who also responsible for educating people with disabilities and have an interest in employing people with disabilities. their families regarding their right to training and employment. The professionals, including a physio- Tool description therapist, an occupational therapist and a counsellor, The overall aim of establishing the IJC was to facilitate provided demand-based support both to the training demand-oriented employment in RMG factories of people centres that conducted the training and to the trainees with disabilities. An advisory committee to the IJC was with disabilities to ensure their participation. formed, chaired by the CEO of the National Skills Devel- • Linking people with disabilities with rehabilitation opment Council Secretariat and composed of represent- support services in order to increase their participa- atives from business associations (Bangladesh Garment tion in skills training. The IJC professionals provided Manufacturer and Exporters’ Association (BGMEA), Bang- information on existing support services and developed ladesh Knitwear Manufacturer and Exporters Association a database and job profiles for people with disabilities. (BKMEA)), the Ministry of Women’s Affairs, civil society IJC also developed or adapted accessible information organisations including the Centre for Disability in Devel- material, including an interactive website giving access opment (CDD), the Christian Blinden Mission Bangladesh to a database on the opportunities related to education Country Office and DPOs. The PSES project has supported and training, health and rehabilitation, livelihoods and the advisory committee with technical and secretarial employment. On the service supply side IJC informed supports since its formation. service providers such as DPOs and self-help groups on the rights of people with disabilities and on the possibil- ities of economic inclusion through skills development. Promotion of Disability-inclusive Workplaces | Green and Inclusive Business Toolbox | 103 • Sensitisation of government agencies. Governmental • Support to RMG and textile factories to implement min- agencies and departments and RMG industry associa- imum recommendations on inclusion. IJC team mem- tions were trained on compliance standards with regard bers established links between interested factories and to national policies and international standards on CDD’s helpline. IJC supported more than 150 factories to disability-inclusiveness in policies. PSES supported the implement at least two out of four areas of inclusion, i.e. a IJC team with self-created communication materials. IJC barrier-free environment in the factory, reasonable work- professionals provided advisory services and training to force adjustments, recruitment of people with disabilities, the factory management for a disability-inclusive work due consideration of people with disabilities in the factory environment in the interested factories. guidelines. • Increase capacities of public and private RMG training providers. In order to improve the access of people with Project set-up disabilities to the training and subsequent employment, The PSES project has supported the advisory committee and the training providers received advice from IJC on how IJC with technical and secretarial supports since its forma- to promote the inclusion in vocational training courses. tion. PSES provided all technical and financial support to In addition, the IJC team established links and a referral establish the IJC. It signed a MoU with BGMEA and BKMEA system with appropriate health service providers for to promote a disability-inclusive workforce in the factories, medical and therapeutic rehabilitation, psychosocial and to implement recommended measures for barrier-free support and assistive devices, and with registered training access for people with disabilities. organisations. A physiotherapist and counsellor provided follow-up and retention support for more than 150 people Tasks and timeline with disabilities, who had already been trained and placed The tasks were carried out simultaneously from in employment. September 2015 to June 2017. Work plan tasks Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 (in quarters) Task 1. Community meetings Task 2. Establish link with referral network Task 3. Sensitise Government agencies or departments Task 4. Increase capacity of public and private RMG and textile skills training providers Task 5. Support at least 150 factories to implement minimum recommendations on inclusion 104 | Green and Inclusive Business Toolbox | Promotion of Disability-inclusive Workplaces Costs • A total of 577 people with disabilities were assessed and All of the costs were covered by the PSES project. a database was kept for internal use. Among the people assessed, 300 were given counselling services and reten- Items tion support. Four full-time staff for IJC – 1 physiotherapist, • Some 153 people with disabilities were placed in 66 1 occupational therapist, 1 counsellor, 1 customer care textile and garment factories, referred by IJC. officer (full-time employment during the project period • A total of 244 people with disabilities were trained on from September 2015 to June 2017) their human rights and on how to promote their rights under national legislation and international standards. One external consultant for development of the concept – 15 working days (+ 2 travel days) Success factors and lessons learned Furniture and fixtures (establishment cost for IJC office) The following success factors can be identified: • Joint strategy. The planned change processes need to Travel costs (1. factory visits –multiple visits of IJC staff be agreed by all key actors, especially business associa- to 150 factories, 2. international travel costs for study tions and the relevant government agencies. Factories tour for 15 participants) involved need to be incentivised regarding their efforts Logistics on mainstreaming disability in their workforce. • Cooperation. An agreed cooperation system and a sus- Results and legacy tainability guideline need to be developed, implemented The following results have been identified: and monitored jointly. Strong support from business • Sensitisation of the factories in partnership with the associations and buyers will increase the motivation of business associations created employment opportuni- potential employers. ties for people with disabilities. Out of 150 factories that • Steering structure. The advisory committee of the IJC received advisory services, 104 factories implemented at needs to promote the proper implementation of the least two measures of inclusion. quota system in technical and vocational education • IJC supported the PSES project and the Department and training, and implementation of the tax exemption of Women’s Affairs to identify people with disabilities provision according to the national law for employing from the community. These people received counselling people with disabilities. and retention support from the IJC professionals to • Processes. The expected changes for disability inclusion reduce any drop-out from training. Out of more than must be compatible to a certain degree with the prevail- 1,100 people trained on garment sewing machine oper- ing infrastructure, policies in the training institutes and ation, 10% were people with disabilities. The people with the factories. disabilities continued to receive retention support after • Learning and innovation. The results, challenges and employment in factories. lessons learned from the pilot initiative with CRP need • An informal network was established by IJC between to be shared, so that costs and benefits can be compared. the NGOs, DPOs and factories to create employment opportunities, including linking up training institutes and employers in the textile and garment industry. Promotion of Disability-inclusive Workplaces | Green and Inclusive Business Toolbox | 105 Additional lessons learned were: Further information • The IJC could increase the demand of recruiting people and GIZ contact with disabilities in the RMG sector with proper job matching and ongoing retention support from profes- Further information on the IJC is available at: sionals. http://www.inclusivejobcentre.com/ • A positive attitude from the senior managers can create The handbook is available at: http://www.cdd.org.bd/ ample opportunities for the employment of people with images/documents/rmg_handbook.pdf disabilities. The guideline on inclusive human resource policy are • Willingness to address the requirements of an acces- available at: http://www.cdd.org.bd/images/docu- sible environment, reasonable adjustment and disa- ments/rmg_hr_policy.pdf bility-friendly policies made it possible for factories to ensure productive participation from the employees Videos are available at: with disabilities. • http://www.inclusivejobcentre.com/Videos/video-1 • http://www.inclusivejobcentre.com/Videos/video-2 • http://www.inclusivejobcentre.com/Videos/video-3 For further information, contact the ‘Promotion of Social and Environmental Standards in the Industry’, GIZ Bangladesh, Sarwat Ahmad (sarwat.ahmad@giz.de) 106 | Green and Inclusive Business Toolbox | References References Publications GIZ, PSES and CDD, A Guideline on Inclusive Human Resource Policy for the Apparel Industry in Bangladesh. AHK and GIZ (2016), DPPs in Mozambique. Available at: Available at: http://www.cdd.org.bd/images/documents/ https://www.giz.de/en/downloads/giz2016-pt-PME-in-mo- rmg_hr_policy.pdf cambique-situacao-e-desafios.pdf GIZ, PSES and CDD, Towards Disability Inclusion. A Handbook Andreas Springer-Heinze (GIZ and Value Links) (2017), Draft for Inclusion of Persons with Disabilities in Government Pro- ValueLinks manual 2.0. Available at: grammes and the Apparel Industry. Available at: http://www. http://valuelinks.org/wp-content/uploads/2015/09/Value- cdd.org.bd/images/documents/rmg_handbook.pdf Links-Manual-2.0-Vol-1-final-draft-July-2017.pdf Groce, N., Kett, M., Lang, R., and Trani, J-F. ‘Disability and Endeva (2013), Inclusive Business Policies — How govern- Poverty: the need for a more nuanced understanding of im- ments can engage businesses in meeting development goals. plications for development policy and practice.’ Third World Available at: http://www.enterprise-development.org/down- Quarterly, 2011, 32(8), 1493–1513 load.ashx-?id=2297 IB Innovation Challenge brochure: G20 (2012), G20 Challenge on Inclusive Business Innova- www.g20challenge.com/wp-content/uploads/2012/02/ tion Brochure. Available at: http://www.g20challenge.com/ G20-Challenge-on-Inclusive-Business-Innovation.pdf wp-content/uploads/2012/02/G20-Challenge-on-Inclu- IFC (2012), Policy Note on the Business Environment for sive-Business-Innovation.pdf Inclusive Business Models. Available at: GIZ (2012), Enablers for Change — A Market Landscape of www.g20challenge.com/wp-content/uploads/2012/06/ the Indian Social Enterprise Ecosystem. Available at: G20_Challenge_on_Inclusive_Business_Innovation_poli- www.giz.de/en/downloads/giz2012-enablers-for-changein- cy_note.pdf dia-en.pdf IFC and WRI (2007), The Next 4 Billion — Market Size and GIZ (2012), Responsible Finance — A Catalyst for Responsible Business Strategy at the Base of the Pyramid. Available Business. International and Indian Trends and Changes in at: http://www.ifc.org/wps/wcm/connect/3c2787004c- Responsible Finance. Available at: http://www.giz.de/en/ c75e6094d7b59ec86113d5/Pub_009_The%2BNex- downloads/giz-2012-responsibe-finance-en.pdf t%2B4%2BBillion.pdf?MOD=AJPERES GIZ (2013), Inclusive business models — Options for support ILO (2009), Value Chain Development for Decent Work. through PSD programmes. Written on behalf of the German Intellecap; Rustam Sengupta (2015), De-mystifying Impact Federal Ministry for Economic Cooperation and Develop- Investing – An Entrepreneurs’bGuide. Available at: ment’s Division Economic Policy, Financial Sector. Available http://www.giz.de/en/downloads/giz2015-en-mystify- at: http://www.enterprise-development.org/page/down- ing-impact-investing-india.pdf load?id=2211 Intellecap (2014), INVEST. CATALYZE. MAINSTREAM.The GIZ (2014), Incubate, Invest, Impact — Building and Investing Indian Impact Investing Story. Available at: in High-Impact Enterprises for Empowering Women and Girls: https://www.giz.de/de/downloads/giz2015-en-invest-cata- An action plan for gender lens incubation and investing. Avail- lyze-mainstream-india.pdf able at: https://www.giz.de/de/downloads/giz2014-en-incu- Pérez Castro, Andrea A.; Tora, Krisztina (2016), Grow – Scale bate-invest-impact-women-india.pdf – Impact: How to help inclusive businesses achieve scale. GIZ (2015), Guidelines for Value Chain Selection. Available at: Available at: http://star-www.giz.de/pub?r=42624 https://www.giz.de/fachexpertise/downloads/giz2015-en- Practitioner guides Inclusive Business Sector Dialogue guidelines-value-chain-selection.pdf Series. Available at: http://www.inclusivebusinesshub.org/ GIZ and BMZ (2011), Promoting inclusive business mod- micro-site/inclusive-business-action-network/knowledge/ els for sustainable development — Experiences of German publications/ development cooperation. Available at: http://www.giz.de/ Scheck, B. and Lütjens-Schilling, L. (2013), International Wirtschaft/de/downloads/giz2011-en-sustainable-develop- Benchmark Study on Social Entrepreneurship (unpublished) ment-business-model.pdf References | Green and Inclusive Business Toolbox | 107 Videos G20 Challenge workshop reports and programmes at: http://www.g20challenge.com/about-the-workshops/ Local Approach to Supporting Green Businesses: Negocios Verdes e Inclusivos (Spanish): GIZ (Guide for managers of industrial zones to adapt to https://www.youtube.com/watch?v=MObqmF3TBSI climate change) http://www.climate-expert.org/en/home/tools-trainings/ Inclusive Business Sector Dialogue: Inclusive Business Action guide-for-industrial-zones/ Network (English): • https://www.youtube.com/playlist?list=PL45l4Jhdlv-GS- Global Entrepreneurship Monitor (GEM) reports: BAzmMapAnfFvuswFdLLR http://gemconsortium.org/country-profile/63 • http://www.inclusivebusinesshub.org/micro-site/inclu- Green Business Model Navigator: sive-business-action-network/inclusive-business-sec- http://star-www.giz.de/starweb/giz/pub/servlet.star- tor-dialogues/ web?path=giz/pub/pfm.web&r=38603 Promotion of Disability-inclusive Workplaces: Green Business Windows: Guide for the implementation of • Including us St 01 (English): http://www.inclusivejobcen- regional green business programmes: tre.com/Videos/video-1 http://www.minambiente.gov.co/images/NegociosVerd- • Including us St 02 (English): http://www.inclusivejobcen- esysostenible/pdf/herramientas_de_regionalizacion/ tre.com/Videos/video-2 LIBRO_FINAL_IMPRESION_ALTA2_Version_2_Modifica- • Including us St 03 (English): http://www.inclusivejobcen- do_06_01_2016.pdf tre.com/Videos/video-3 Green Business Windows: Guide for defining and selecting Opening New Markets with Low-carbon Products: Cli- green businesses: mate-friendly coffee farming in Costa Rica (English): http://www.minambiente.gov.co/images/NegociosVerd- http://www.dw.com/en/climate-friendly-coffee-farm- esysostenible/pdf/criterios_negocios_verdes/criterios_ac- ing-in-costa-rica/av-39859449 tualizado_2016/Guia_Verificaci%C3%B3n_Criterios_NV_ V12__26_01_2016.pdf Weblinks GreenOvation: www.greeneconomy.ph Aarohan Ventures: https://yourstory.com/2013/07/ciie- Inclusive Job Centre: http://www.inclusivejobcentre.com/ aarohan-giz-workshop-ecosystem-development-social- NAMA Café de Costa Rica / NAMA Support Project: enterprises/ www.namacafe.org Adaption /Private Sector Adaption: Open Africa: http://www.openafrica.org/ www.adaptationcommunity.net PerúBioInnova: http://proambiente.org.pe/publicacion_nota. Affordable Housing Sector Dialogue: php?buscar=&tid=0&cid=0&rid=0&oid=0&pagina=2&id=79 http://www.inclusivebusinesshub.org/micro-site/inclu-sive- business-action-network/events-formats/creat- ProECON: https://www.deutsche-digitale-bibliothek.de/ ing-solutions-affordable-housing-west-africa-innova-tive- binary/QLYLHFB2WMYQDI6UT6NCL4B3B7JYENPU/full/1. partnerships/ pdf Baladini: https://www.baladini.com/ PSD programme South Caucasus: https://www.giz.de/en/worldwide/20324.html Caucasus School of Business (CSB): http://www.mba-spec- trum.com/schools/caucasus-school-of-business-tbilisi#. Solarkiosk: http://solarkiosk.eu/ Wbems4VOLIU Sustainable Regional Economic Growth and Investment Climate Expert: www.climate-expert.org Programme: http://www.sregip.or.id/ Development partnerships with the private sector (DPPs) of Worldbank GDP per capita: GIZ Vietnam: https://www.giz.de/en/ http://data.worldbank.org/indicator/NY.GDP.PCAP.CD?loca- worldwide/18718.html tions=EG G20 Challenge portal: http://www.g20challenge.com/ Yomken: www.yomken.com G20 Challenge winners: http://www.g20challenge.com/winners/ Published by Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH Registered offices Bonn and Eschborn, Germany Sector Project Sustainable Economic Policy and Private Sector Development & Global Project Responsible and Inclusive Business Hub Friedrich-Ebert-Allee 36-40 Dag-Hammarskjöld-Weg 1-5 53113 Bonn, Germany 65726 Eschborn, Germany Tel. +49 (0) 228 44 60–0 Tel. +49 (0) 61 96 79–0 Fax +49 (0) 228 44 60–17 66 Fax +49 (0) 61 96 79–11 15 info@giz.de info@giz.de www.giz.de www.giz.de As at October 2017 Printed by Design and layout Iris Christmann, Wiesbaden (cmuk) Green and Inclusive Business Toolbox Photo credits Baladini/Johnson, Brendon (Page 66); CORPONOR (Page 92); GIZ (Page 8, 64); GIZ/Albrecht, Martin (Page 98); GIZ/Al Maktri, Wagdi (Page 100); GIZ/Ahmed, Shumon (Page 104); GIZ/Asche, Sabrina (Page 102, 105); GIZ/Carolin Weinkopf (Page 65); GIZ/Diaz, Jose (Page 52, 78); GIZ/Fayessa, Tadesse (Page 28); GIZ/Godau, Martin (Page 61); GIZ/Imo, Thomas (Page 18, 19); GIZ/Jäschke, Thomas (Page 37, 38, 39); GIZ/Kirchgessner, Markus (Page 69, 94); GIZ/Kirstein, Lucie (Page 7, 13, 15, 28, 31, 60, 95); GIZ/König, Andreas (Page 72); GIZ/Kopp, Florian (Page 91); GIZ/ Mahdayan, Wiwik (Page 45); GIZ/Nugroho, Sony (Page 47, 48); GIZ/Ostermeier, Dirk (Page 17, 19, 86, 99); GIZ/Radike, Britta (Page 25); GIZ/Salem, Schirin (Page 68); GIZ/SREGIP (Page 46); GIZ/Strategic Alliance – Corporate Engagement in Start-up and Social Enterprise Incubation in India (Page 55, 56, 57); GIZ/Walsch, Alan (Page 30); GIZ/Wohlgemuth, Janina (Page 80, 83); GIZ/Yehia, Yasmin (Page 68); Gutierrez Maguiño, Renzo (Page 75, 76, 77); ICAFE (Page 50, 52); Open Africa (Page 41, 42, 44); RegencyFoundationNetworx (Page 71, 72, 73); Solarkiosk AG (Page 5, 9); Yomken Page (22, 24) Composings (Cover and Content): Pictograms, Fotolia Green and Inclusive GIZ is responsible for the content of this publication. On behalf of the German Federal Ministry for Economic Cooperation and Development (BMZ) Division Cooperation with the Private Sector; Sustainable Economic Policy Business Toolbox Adresses of the BMZ offices BMZ Bonn BMZ Berlin | im Europahaus Promoting Green and Inclusive Business Models Dahlmannstraße 4 Stresemannstraße 94 in Development Cooperation Programmes 53113 Bonn, Germany 10963 Berlin, Germany Tel. +49 (0) 228 99 535–0 Tel. +49 (0) 30 18 535–0 Fax +49 (0) 228 99 535–3500 Fax +49 (0) 30 18 535–2501