Sustainable Entrepreneurship
Bogazici Universitesi, Istanbul February 2012
Sustainable Entrepreneurship Entrepreneurship ďƒ transform innovations into economic goods Sustainability Sustainabilit ďƒ maintenance of responsibility to endure
Sustainable Entrepreneurship Social
Equitable Economic Sustainable
Bearable
Viable
Environment SE is closely linked with the principles of Sustainable Development, which argues that enterprises should make decisions based not only on financial factors such as profits or dividends, but also based on the immediate and long-term social and environmental consequences of their activities.
Sustainable Entrepreneurship is ‌. contributing to sustainable development by doing business in a sustainable way the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the world and of future generations
‘… let’s choose to unite the powers of markets with the authority of universal ideals. Let us choose to reconcile the creative force of private entrepreneurship with the needs of the disadvantaged and the requirements of the future generations…’ Kofi Annan
United Nations Global Compact Network
Stakeholder Management Shareholders Potential customers Business organizations
Public institutions
Communities
Government
Public
Business partners
Company Employees
Supply Chain
Market
Customers Creditors/banks
Society NGOs
Private Sector in Market Development activities along Value Chain Social Benefit
Risk Attracting funding for charity projects or social investments
Social investments that further business objectives and may contribute to local or international development objectives. ------------UN Global Compact
-Fostering core business segments targeting at BOP along the value chain - Promoting investments in Pro-Poor goods & services -Supporting local entrepreneurs ------------Growing Inclusive Markets Action
Business Call to
Business Benefits
Innovation Sustainable Business Models
Compliance
Provide funding and skills
Value Creation
Fundamental Strategic and Operational Impact
Risk Management
Medium to High Strategic and Operational Impact
Corporate Philanthropy
Little Strategic or Operational Impact
Sustainable Entrepreneurship Private Sector unwilling/unable to improve/ expand services to Low Income Groups (LIG)
Lack of Tenure Low consumption High cost – Low profit Lack of payment culture
Results in Unexplored Market Opportunities
Role of UNDP UNDP helps the private sector use its resources to move beyond philanthropy toward a more sustainable approach to reaching out to the poor and to support sustainable development at global and national levels.
Sustainable Entrepreneurship Inclusive Business Models Include people with low incomes on the demand side as clients and/or as employees, producers and business owners at various points of the value chain. Businesses benefit from winning new consumers, expanding workforce and strengthening the supply and delivery chains. LIGs benefit from meeting basic needs, having sustainable earnings and achieving higher productivity.
Environmental resources are used sustainably
Report – Main Messages 1
Opportunities exist in ECA to include people with low incomes as consumers, employees, producers and entrepreneurs.
2
Inclusive business models can increase competitiveness
3
Widespread market constraints require innovative solutions
4
The support from others is often essential for success
5
Everybody can contribute to make business more inclusive
The support from others is often essential Role
Activities
Policy Making
Research and Advocacy
Financing
Complementary Capabilities
• Governments create the legal environment that enables and motivates companies to include people with low incomes • Associations and development agencies and banks support them. • Research institutions, think tanks and specialist organizations create the empirical data, analytical knowledge and practical knowhow that guide the creation of effective models. • Advocacy creates the broad-based awareness and support required to successfully initiate and implement such models. • Grant and seed funding finances the start-up phases. • Subsidies and other shared-cost models improve the business case around inclusion. • Organizations that have longstanding experience in working with the target group often come in to train and inform them or take on other tasks that require local knowledge, networks, and trust.
15
Everybody can contribute to more inclusive business
Actor
Companies
Governments
Potential for engagement
• Identify opportunities for inclusion of low-income people • Take a fresh look at marginalized populations • Listen to advocacy • Provide incentives for inclusive business • Improve the enabling environment • Inspire inclusive business models
Development partners
• Establish community-based inclusive business models • Broker partnerships to enable inclusive business models • Provide funding and technical assistance
Civil society organizations
• Provide technical assistance • Advocate and raise awareness • Represent beneficiary interests
THANK YOU FOR YOUR ATTENTION! hansin.dogan@undp.org www.iicpsd.org www.undp.org.tr