measuring job creation in the value chain martin webber
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J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc. J.E. Austin Associates, Inc.
Measuring Job Creation in the
Value Chain
Martin Webber
J.E. Austin Associates
Assessing Private Sector Contributions to Job
Creation and Poverty Reduction
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc. J.E. Austin Associates, Inc.
Pran, OCL, Mriya, Ecogreen: Many suppliers and upstream
jobs
Safal, Mriya: Many distributors and downstream jobs
Supply Processing Distribution
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc. J.E. Austin Associates, Inc.
Supply Processing Distribution
Supply Processing Distribution
Companies vary in the “width” of their supply
and distribution chains
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc. J.E. Austin Associates, Inc.
Pran, Mriya: Substantial Vertical Integration in Supply
OCL, Mriya: Substantial Vertical Integration in Distribution
Supply Processing Distribution
Supply Processing Distribution
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc. J.E. Austin Associates, Inc.
Market pull
Production push
Processing capacity
push
Supply Processing Distribution
Supply Processing Distribution
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc.
With good enablers: 10 changes that we should
see in business decision-making
1. More sophisticated business and marketing strategies
2. Longer term strategies
3. More B2B collaboration
4. Improved value chain linkages
5. More start-up activity
6. Increased investment
7. Longer-term investment
8. New hiring
9. More investment in employee productivity
10. Increased use of formalized finance for expansion
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc.
Enterprise Development Diagnostic Framework
Knowledge,
Technology &
Access to Services
Access to
Finance
Legal, Regulatory
& Competitive
Environment
Workforce & Skills
Development
Enterprise
Development
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc.
Elements of Enterprise Development
• Enterprise performance
• Structure of the enterprise landscape
Enterprise sophistication, including
enterprise strategy and decision
making.
Enterprise
Development
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc.
MEASURE:
Understanding how and whether business
decision-making and actions are changing in
response to improvements in an economy’s
business environment.
Enterprise
Development
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc.
How to use MEASURE’s information
• Inform program design and implementation: How best
to achieve sustainable enterprise-level results.
• Baseline measurements and impact assessment.
• Comparisons among countries.
• Test assumptions about impact and effectiveness of
approaches.
Enterprise
Development
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc.
Relevance of the Value Chain
Perspective for IFC
• For development impact, jobs are important as a decision
criterion.
• Job impact needs to be understood in a value chain context.
• For any investment, IFC will need to understand the company’s VC strategy as it pertains to supply and distribution.
• Company strategy and investment decisions are affected by the VC’s enabling environment and relationships.
• Linking IFC operations with initiatives to improve the enabling environment will maximize impact …
… in terms of availability of deals, and of identifying deals that will have large job impacts.
Enterprise
Development
J.E. AUSTIN ASSOCIATES, INC.
EVENT NAME J.E. Austin Associates, Inc. J.E. Austin Associates, Inc.
THANK YOU!
Martin Webber Executive Vice President
J.E. Austin Associates, Inc.
+1-703-841-2631