In its Issue Brief on small and medium enterprises (SMEs), the Alliance for Inclusive Business between the World Business Council for Sustainable Development (WBCSD) and SNV Netherlands Development Organization argues that a thriving SME sector is critical to inclusive economic growth and job creation. In that context, localizing value creation through engagement with SMEs is a key contribution that large corporations can make to economic development. This underpins their license to operate by creating a positive local impact, can reduce supplier costs and can be an important source of innovation to develop new products and reach new consumers.
Meanwhile, in the framework of their Business Linkages Series, earlier this year the International Business Leaders Forum (IBLF), the International Finance Corporation (IFC) and Harvard's Kennedy School organized a two-day workshop in Rio de Janeiro focused on big business supporting entrepreneurs in the low-income segment. Companies attending the event included Unilever, The Coca Cola Company, SABMiller, Nestle, Starbucks, Deloitte and Anglo American, as well as other major Brazilian companies such as Tribanco, the financial arm of the largest Brazilian wholesaler, Grupo Martins. The seminar’s report (pdf, 36 pages) summarizes the findings of the conference, looking specifically at the innovative strategies put in place for successful linkages, such as access to finance and capacity building as well as the opportunities and challenges behind these.
Kees Kruythoff, CEO of Unilever Brazil, observed, "At Unilever, we have different programs that work directly with entrepreneurs in Brazil and other developing and emerging countries. We have set up locally run systems of distribution that allow local small business owners to become part of our distribution chain to generate income and create jobs. "
More information on SME development:
WBCSD-SNV Issue Brief on Promoting SMEs for Sustainable Development - explains how governments can help alleviate poverty by focusing on SMEs and how larger corporations can help themselves by including SMEs in their value chains.
IBM / IFC Toolkit aimed at improving SME management - free business management information and training toolkit for small businesses and SMEs on accounting and finance, business planning, human resources, marketing and sales, operations, and information technology.
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