More than 4.5 billion people worldwide belong to the Bottom of the Pyramid (BoP) and have a purchasing power parity of 8 USD a day or less. Because the BoP population is largely excluded from formal markets, there is a strong demand for innovative inclusive businesses that incorporate members from the BoP population into the company’s core processes.

Innovative Inclusive Business models deliver both commercial benefits for the private sector and developmental benefits for people in low income groups, in terms of job creation, income improvements and availability of more affordable goods and services. Starting a business in nontraditional markets, however, requires business support from experts familiar with the local context and economy. The Inclusive Business Accelerator (IBA) is developing and strengthening local one stop shops to support the private sector with knowledge, expertise and services to initiate and scale up their business activities in low-income markets.

Objectives:

1. More enabling environment with increased recognition for the IB approach as an effective mechanism for poverty reduction and reduced risk perceptions for investments

2. Enterprises run successful inclusive business models, generating increases on profits, market share competitiveness and sustainability

3. Low-income people benefit from inclusive business models with income increases, job opportunities and access to quality goods and services

The IBA programme is managed by SNV, in partnership with BoP Innovation Center, Venture Capital for Africa (VC4A) and Nyenrode Business University, and co-funded by the Netherlands Ministry of Foreign Affairs (DGIS). The programme supports companies in three focus sectors, agriculture, sustainable energy and water and sanitation, and started with two local platforms of inclusive business advisory services in Vietnam and Mozambique in 2014. These local Inclusive Business Hubs bring together highly-regarded professionals, experienced business leaders, trusted service providers, investors, and development agencies to support interested companies with:

• Market Intelligence & Opportunity Identification: Market intelligence & Scoping studies, Market opportunities screening, Open calls for applications, Due diligence/Selection.

• Business Design & Readiness: Business model design, Business plan development, Business readiness (Financial system, Branding & Marketing, Distribution network), Testing & Piloting products.

• Management/Technical Consulting: Operational process improvement (Organisational design, marketing, finance), Product R&D/Design.

• Match-making and knowledge management: Investor-Investee Match-making events, Impact measurement, Dissemination of best practices, Public policy support.

Alongside the establishment of local support platforms the programme invests in two other components to create an one-stop shop for businesses to innovate, grow, replicate and improve their inclusive business strategy: IB Accelerator Online and IB Accelerator Global. IB Accelerator Online is an online open innovation platform that connects social innovators, business coaches, impact investors, financers and businesses and forms a vibrant market place for ideas, knowledge, business support and venture capital. IB Accelerator Global focuses on building a global network, creating market intelligence and strategic scoping activities, with the aim to build impact coalitions and improve the enabling environment to mainstream inclusive business.The ambition of the programme is to expand the local platforms of inclusive business advisory services to other markets and create a worldwide network providing inclusive business support to the private sector.

After two years of implementation in Vietnam and Mozambique the IBA:

• Worked with 47 SMEs, 26 in Vietnam and 21 in Mozambique, of which 34 SMEs are upgraded for investment and 27 experience a sales growth;

• Increased income for 24,550 low-income people due to innovation;

• Improved access to nutritious food and/or basic services for 39,339 people at the bottom of the pyramid;

• Created 1,622 new jobs for people at the bottom of the pyramid.

Learn more about IBA here.