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Business-to-Business Networking Marketplace

Business-to-Business Networking Marketplace. Presenter: Aidan Coville with Francisco Campos (WB), Sabrina Roshan (WB) and Sandra Sequeira (LSE) DIME-FPD Global Workshop, 6 – 11 June 2011. Overview. PPPPP of the B2B. The Problem. The World. South Africa. The Problem.

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Business-to-Business Networking Marketplace

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  1. Business-to-Business Networking Marketplace Presenter: Aidan Coville with Francisco Campos (WB), Sabrina Roshan (WB) and Sandra Sequeira (LSE) DIME-FPD Global Workshop, 6 – 11 June 2011

  2. Overview PPPPP of the B2B

  3. The Problem The World South Africa

  4. The Problem It is difficult for companies to find suppliers, and screen them for quality. This increases the cost of products and services (inefficient matching) while reducing business opportunities for smaller, female-owned firms How do we create a credible andalmost costless link between small and medium to large firms? How do we generate trust for medium and large firms to do business with small firms, particularly women-owned?

  5. Proposed Intervention Link small firms (suppliers) to small, medium and large firms (buyers) through an online and SMS accessible marketplace KEY New Features Updated Directories of suppliers Job postings and quotes by sector, location, price range Shortlisting of potential suppliers to request more information Feedback rating system: feedback on performance Recommendation system: buyers recommend suppliers Mapping of business relationships

  6. Proposed Intervention Link small firms (suppliers) to small, medium and large firms (buyers) through an online and SMS accessible marketplace KEY New Features Updated Directoriesof suppliers Job postings and quotes by sector, location, price range Shortlisting of potential suppliers to request more information Feedback rating system: feedback on performance Recommendation system: buyers recommend suppliers Mapping of business relationships

  7. Examples of Features Directories www.buy-in-timor.org:

  8. Job Postings and Request for Quotes http://plumbers.networx.com:

  9. 2195

  10. Feedback and Rating System www.ebay.com:

  11. Recommendation System www.linkedin.com www.amazon.com

  12. Mobile Access: Quotes Quote requested (#Q6502): 60-seater bus hire on 8 June. Copacabana to Rio Scenarium return trip. Company: World Bank Contact: Sylvia Reply Quote #Q6502 Cost: R$ 350 Comments: Only 50-seater bus available Contact: Natasha

  13. Mobile Access: Feedback Order #O3201 Feedback: Comfortable, on time and flexible. Thanks! Punctuality: 5/10 Price: 7/10 Communication: 6/10

  14. Pilot Plan (in KwaZulu Natal Province) Develop Marketplace Marketplace Maintenance Marketing of the marketplace Hosting the marketplace Showcase for potential scale- up Advisory role in marketplace Development Impact Evaluation Recommendations for upgrade and nationwide scale-up Sponsor the Marketplace Development Provide supporting role in marketing Access to business lists

  15. Marketing and selection Marketing and selection Pool of suppliers (10,000) Pool of buyers General marketing awareness campaign Initial screening and random selection of pilot participants Targeted marketing: demos, brochures, firm visits, workshops , survey Similar group of not participants (1,500) List of participant suppliers (1,500) Buyers registration (250 with gender information, 250 without) • Baseline survey • Follow-up survey • Baseline survey • Upload participants into system • Randomly phase in new features • Follow-up survey • Personal support: • Visits / Demos • Identification of needs • Updates to the marketplace • Presentation of features

  16. Overcoming Information Asymmetries BUYERS NO OWNER GENDER INFO COMPLETE INFO 125 125 FEEDBACK AND RATING SYSTEM 125 125 NO FEEDBACK/RATING

  17. Questions Can an intervention like this improve market access and support the development of traditionally marginalised SMEs? Is market access a more binding constraint for female firms? What information (including gender and race) influences buyers transaction decisions and do these depend on knowledge regarding the quality of the suppliers?

  18. The Results Watch this space...

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