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HOW TO DEVELOP SUSTAINABLE AND INCLUSIVE BUSINESS MODELS? NEPAL AND AFGHANISTAN. FINANCING BUSINESS MODELS. BoP financing models: Microfinance (making it safer for failing) Business incubators Demand based products and services Matching markets, demands and suppliers
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HOW TO DEVELOP SUSTAINABLE AND INCLUSIVE BUSINESS MODELS? NEPAL AND AFGHANISTAN
FINANCING BUSINESS MODELS • BoP financing models: • Microfinance (making it safer for failing) • Business incubators • Demand based products and services • Matching markets, demands and suppliers • Small grants (e.g. IFIs, private sources, Women’s Bank) • CSR • Cooperatives
POLITICAL CHALLENGES AND CORRUPTION • Rules and regulations needed • Coordination among the locals, NGOs, private sector, government, international organisations • Change of mindset and social perceptions • Education of people against corruption • Role of media to reveal corruption • Corruption ”hotlines” • Fair pay and fair trade
SUSTAINABLE BUSINESS • Market driven approach and good products • Longer term investments (not only seed financing) • Market information • Entrepreneurial training and skills • Building good business networks • Supply chain and distribution • Local production and consumption by locals • Marketing and communications (localised)
LACK OF INFRASTRUCTURE AND INSTITUTIONS • Building market networks • Marketing of products • Distribution channels • Tight EU/Western regulation, if exporting • Packaging • Investments in infrastructure ( who’s responsibility?) • SERVING LOCAL MARKETS AND NEEDS