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Inclusive agribusiness trends options in Southeast Asia By AHall
- 2. Research: what and who? • Regional policy overview and landscape. – Prof Paul Teng, NIE, Sing. 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
- 3. 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?
- 4. Inclusive agri‐busness is happening • Innovation in business modles of companies large and small is creating opportunities for smallholders: – access to value chains domestic and export – access to inputs including products and delivery arrangements targeting smallholders – services that target smallholders and create wider opportunities – building capacity; social organisation, technical advice, market preparedness.
- 5. 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
- 6. 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.
- 7. 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.
- 8. 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
- 10. Companies becoming more inclusive Players • Global • NABC • (SMEs) Pathways • Piloting • Adapting • Transforming Scaling Possibilities • Good practice emerging • Narrow set of approaches/ commodities, wide reach Becoming more business‐like Players • Co‐op plus • New era social businesses Pathways • Up‐grading • Pioneering Scaling Possibilities • Good practice well understood • Large reach, but dairy and oil palm only?????? • Doesn’t work in all countries Community embedded companies Players • Family SME? • Others?? Pathways • Social shaping • Incidental inclusiveness • Others?? Scaling possibilities • Incidental good practice exists, in many forms. • Large number, small reach • Unknown, but untapped?? Players • Pioneering SMEs • Social entrepreneurs • Entrepreneurial scientists Pathways • Incubation. • Pre‐competitive development • Trailblazing SME • Market disruption Inclusive pioneers Pathways for inclusive agribusiness at scale Scaling possibilities • Helping the continuous development of new practice. • Individually small reach, but collectively large, diversity of commodities, products and service.