Inclusive Business trends and options

Inclusive agribusiness: trends, options and questionsAndy Hall, CSIRO, Australia

Research: what and who?

• Regional policy overview and landscape.– Prof Paul Teng. SEARCA

• 40 case studies of agri-companies looking at how and why companies are shifting towards inclusive business practice.

• 7 regionally based research teams– IPSARD, Can Tor Uni, Bogor Uni, Business Innovation

Center, PBSP, ASEI, AIT• Preliminary analysis: ordering the story

The big picture is a complicated picture

• Multiple ways of implementing inclusive business• Multiple motivations• Reflects complex of commodity, country, company

size and reach and company origins.• A number distinctive pathways to arrive at

inclusive business• Lens to help think about practice, scaling and

options for public, private and donor investment?

Inclusive agri-busness is happening

• Innovation in business modles of companies large and small is creating opportunities for smallholders:

Why are companies doing it?

• Shift in corporate policy towards sustainability and share value propositions.

• Recognition of large markets of smallholders• Policy support: schemes, but often alignment of

national development plans, goals and investments with company goals

• Enabling technologies, particularly ICT, create new inclusive business opportunities

• Opportunities that previously didn’t exist• Growing community of socially aware entrepreneurs

Who is involved?

• Doing inclusive business– MNC’S– National Agribusiness companies– Pioneering SMEs– Pioneering new era social enterprises– Traditional social enterprises

• Enabler organisations– NGO’s (traditional and new, policy advocacy, non-profit

companies) CSR foundations, research organisations, global backbone organisations setting standards and practice.

How is inclusiveness business implemented: Many permutations

– Social organisation of farmers coupled with technical assistance. With partner help

– Partnering with farmers associations– Clustering of support services: public and private – Formal or social contracting– Products and allied advisory services targeted small

holders, bundled with production purchases.– Services made accessible to smallholders: bundled with

other implementation strategies; through clustering; – the creation of new inclusive service provider businesses.

Pathways to inclusive business:

• Piloting inclusive schemes within existing business models.

• Adapting existing business models to include inclusive elements

• Transforming existing business models • SME’s pioneering entirely new inclusive businesses /

models.• Pioneering new era social enterprises • Upgrading traditional social enterprises.• Traditional community embedded SMEs

Inclusive agribusiness

at scale

Pathways are different routes to achieving inclusive agri-business at scale

Inclusive agribusiness

at scale

Companies becoming more inclusive

Players• Global• NABC• (SMEs)

Pathways• Piloting• Adapting• Transforming

Inclusive agribusiness

at scale

Companies becoming more inclusive

Players Pathways

Scaling Possibilities• Good practice emerging• Narrow set of

approaches/ commodities, wide reach

Inclusive agribusiness

at scaleBecoming more business-like

Players• Co-op plus• New era

social businesses

Pathways• Up-grading• Pioneering

Companies becoming more inclusive

Inclusive agribusiness

at scaleBecoming more business-like

Players Pathways

Scaling Possibilities• Good practice well understood• Large reach, but dairy and oil palm

only??????• Doesn’t work in all countries

Companies becoming more inclusive

Inclusive agribusiness

at scaleBecoming more business-like

Companies becoming more inclusive

Community embedded companies

Players• Family

SME?• ??

Pathways• Social shaping• Incidental

inclusiveness• ??

Inclusive agribusiness

at scaleBecoming more business-like

Companies becoming more inclusive

Community embedded companies

Players Pathways

Scaling possibilities• Incidental good practice exists,

in many forms.• Large number, small reach• Unknown, but untapped??

Inclusive agribusiness

at scaleBecoming more business-like

Companies becoming more inclusive

Community embedded companies

Players• Pioneering

SMEs• Social

entrepreneurs• Entrepreneurial

scientists

Pathways• Incubation.• Pre-

competitive development

• Trailblazing SME

• Market disruption

Inclusive pioneers

Inclusive agribusiness

at scaleBecoming more business-like

Companies becoming more inclusive

Community embedded companies

Players Pathways

Inclusive pioneers

Scaling possibilities• Helping the continuous

development of new practice.• Individually small reach, but

collectively large, diversity of commodities, products and service.

Inclusive agribusiness

at scaleBecoming more business-like

Companies becoming more inclusive

Community embedded companies

Inclusive pioneers

• Public, Private & Donor priorities• Alignment of private and

policy goals• Stronger global back bone

organisations

• Knowledge gaps• Social and economic

effectiveness

Inclusive agribusiness

at scaleBecoming more business-like

Companies becoming more inclusive

Community embedded companies

Inclusive pioneers

Public private and donors priorities. Helping national international business collaboration??????

Knowledge gapsScope and economic potential

Inclusive agribusiness

at scaleBecoming more business-like

Companies becoming more inclusive

Community embedded companies

Inclusive pioneers

Public, private and donor priorities??? Improving business environment?? Science and technology support???

Knowledge gapsEstablish potential???

Inclusive agribusiness

at scaleBecoming more business-like

Companies becoming more inclusive

Community embedded companies

Inclusive pioneersPublic, private and donors priorities.Pioneer financing, innovation support services, science and technology, alliance with big value chain players

Knowledge gapsMetrics of scope and potential