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Care Bangladesh’s Experience of Inclusive Business

Workshop on Partnering for Inclusive Business

July 20, 2013

Private Sector Engagement

Presented by Rubaba Anwar; Photo credits: Akram Ali & Rubaba Anwar, CARE Bangladesh

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Why be inclusive?

Share better!

More equitable distribution of opportunities, income and services

Use available resources better!

Build capacity to boost productivity of underutilized resources

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Being inclusive

Workforce Empowerment

Aggregation and Market Access

Distribution and Market Access for the BoP

Framework for Inclusive Business

Producers

Suppliers

CustomersEmployees

Business

Distributors

Retailers

Sourcing and Market Access

Access to markets & Distribution

Productive Workforce

Core Business Social Investments

BEE

Policymakers

Private Sector

Evidence Base

INNOVATIONS

Finance Social Enterprise Technology

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Aggregation and Market Access: Indigo returns home with

prosperity

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Nijera Cottage and Village Industries

Pvt. Ltd.

Opportunity of aggregation and market access for sustainable sourcing

-Legacy of indigo cultivation-Indigenous artisanship-Global high end fashion market’s sensitivity to environment-Global fashion market’s search for sustainably sourced dye for long term business

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• A ‘We for Ourselves’ artisan owned initiative;

• Value chain formed by aggregating indigo farming, extraction, dyeing and stitching;

• Products sold to international buyers under the ‘Living Blue’ brand.

We for Ourselves: LIVING BLUE

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Farmers

Indigo cultivation Indigo extraction

Workers  Indoxyl rich liquid enhances soil fertility 

Workers; raw indigo sold

Artisans

Textiles purchased from traditional manufacturers

Artisans

Processed indigo

Shibori, Arashi

Dyeing & Drying

Artisans

Final products sold internationally

Stitching and finishing

BDT 2 million income generated for the local

union’s economy

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Living Blue reaches out to the world

LIVING BLUE

What is in it for high end clothing and accessories retailers?

• Appeal to high value fashion markets

• Develop capacities and strengthen the source of sustainable natural dyeing

• Be externally reputed through promotion of:• environment friendly dye • poor people’s crafts and skills

• Carry out internal branding

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Workforce Empowerment: capacity building and placement for urban poverty reduction

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• 45 million people, 28% of the population live in urban Bangladesh.

• More than one third of the urban population live in slums and almost half of them are

poor.

YET

• Urban industries continue to suffer from

inadequacy of skilled workers

Rapid urbanization: Opportunity of workforce empowerment

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UPPR’s Workforce Capacity Building Mechanism

Market appraisal

Private sector employer needs

Community or impact group needs

Matchmaking workshop to match employers’ needs and skills

Training program design

Private sector employers

Women empowerment, dignified employment, solidarity building

Business needs

Training Placement

Monitoring and

evaluation (M&E) and

support

Provision of training

Absorption of trainees

M&E of placement and need

for further training

Value-adding Innovations unrelated to core Supply Chain Development interventions

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UPPR’s attempts towards Workforce Empowerment

• 3,030 trained in Homestead Gardening and Medicinal Plant Production Skills Development by ACI Seed;

• 11,489 beneficiaries trained on Enterprise Development and Business Management (EDBM) by Synergy and Jobs;

• 120 trained on handicrafts by justice Advancement Team for Rehabilitation and Creation (JATRIC);

• 131 trained by Apex Adelchi Footwear Ltd.

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Distribution and market access: marketing to the Bottom of the Pyramid consumers

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Opportunity of BoP marketing in the dairy industry of Bangladesh

• Smallholders account for 90 percent of the domestic milk production

• Amongst the lowest yields in the world affecting:– farmers’ incomes– dairy processing industry e.g. Milk

Vita, Pran, Aarong, Aftab, Akij etc. threatened by large dairy imports

• Poor access to inputs – feed and medicine – is a major obstacle to improving milk yields:– Underutilized market for dairy input

suppliers

Krishi Utsho-Microfranchise Model

Vet/Drug AI ServiceAnimal FeedPrivate Sector

KU Shops

Farmers

Franchisee mobilization I Farmer awareness generation I Market linkage I Franchise Operating Manual & Processes I Training & Certification

Information I Capacity Building & Technology Platform I Monitoring & Evaluation

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The Krishi Utsho progress in BoP marketing

• Over 50 input shops across Northern Bangladesh: Sirajganj, Rangpur, Natore, Bogra, Pabna, Kurigram

• Serving nearly 30,000 clients (40% SDVC dairy farmers)

• Average yearly sales growth: 35%

• 50% growth in milk yield with support from SDVC Project

• Product range: Cattle feed, medicine, treatment, artificial Insemination, diagnosis service, information access and poultry feed.

• 15 partners from the private sector

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Lessons learnt

Private SectorFinancial

InstitutionsGovernment

DonorsSocial

EntrepreneursNGOs

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Thank you