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October 2017

Non-Governmental Organisations (NGOs) are increasingly seeing the importance of incorporating business thinking to

achieve their development goals. A few pioneers have already carved out their roles in the inclusive business space,

either as partners of companies, as intermediaries, investors, or even as entrepreneurs. We are partnering with

Endeva to explore how they are doing and what lessons can be learnt from those that are leading the way.

This month, we feature these pioneers. In their blogposts, they take a step back and reflect on their experiences and

lessons learnt, as well as share useful tips, tools and resources.

Why and how should NGOs engage with (inclusive) business?

Many still think that traditional NGO work and business approaches are a contradiction, and that partnerships are

limited to philanthropy. In their overview of the series, Endeva’s Aline Menden and Christian Pirzer debunk this

assumption and reveal key roles for NGOs in the inclusive business space and the challenges that they come with.

Does your NGO have the capability and capacity to engage in inclusive business? BoPInc’s Nelleke van der Vleuten

introduces the NGO Capability Scan, a self-assessment tool that helps NGOS (and their business partners) answer

that question.

What collaborations are emerging between NGOs and inclusive businesses?

World Vision's engagement with inclusive business ranges

from partnering with cocoa companies to investing in local

enterprises, to co-creation explains Katharina Jeschke.

Sometimes they encounter tensions or even need to walk

away.

Practical Action in Bangladesh facilitates inclusive business

models by helping inclusive businesses find donor funding

and providing support once it is secured. Fundraising

Specialist Sabrina Shahab explains how NGOs can facilitate

successful business-donor relationships.

What is the business’ experience of working with NGOs? The

Founder and Director of a leading agricultural business

based in Sub-Saharan Africa tells us some hard truths about

private sector-'DINGO' relationships.

The role of NGOs in inclusive business

For World Vision Finland, linking local communities and businesses is a way to secure the sustainability

of their project efforts.

THEME

Now in its 8th year, a fascinating Corporate-NGO Partnership

Barometer has just been released based on 130 NGOs and

companies. C&E Advisory CEO Manny Amadi highlights

substantial shifts that are happening, although too much

focus on funding and reputation are still problems.

NGOs can help business partners to better address social

issues, particularly gender equity, as we explored in last

month's theme. Plenty such examples are shared by Claudia

Canepa, Oxfam, ranging from corporate partnering on

laundry to cocoa.

How are NGOs setting up their own inclusive business models and what lessons have been learnt?

It is extremely sensitive and difficult to inject business DNA

into a NGO programme that has been running for a

number of years. This blog, written by Tom Harrison in

2013, remains uniquely relevant as it summarises

important lessons learnt from NGO programmes that

transition into inclusive business models.

This tool helps NGOs to determine the optimal strategy for

turning project activities into a self-sustaining business. It is

also helpful for emerging businesses developing their

operations in micro-credit and for organisations that

undertake a business strategy analysis or review of their

operating models.

Population Services International (PSI) has taken a leaf out

of the ‘corporate playbook’ to develop a social franchise

model to fulfil its objective of improving healthcare for the

poor. IBAN’s Elisabeth Schroeder takes a closer look at

three of PSI’s social franchise innovations.

The Living Blue Project, started by international NGO CARE

in 2004, was spun off as a social enterprise in

2015. Mishael Aziz Ahmad from CARE explains why and

how the transition took place.

World Vision Finland has developed the co-creation

process Weconomy that brings together businesses and

low-income communities to work towards small and

growing inclusive business ventures.

Do you want to know more on

the topic?

There are relatively few resources and tools focused on NGO roles in inclusive business but we have pulled out the best, including:

five checklists and tools for building NGO-business partnerships

an overview of NGOs in impact investing

experiences of setting up NGO projects as a business

Living Blue’s indigo production provides jobs and incomes to farmers in northern Bangladesh

What should be the role of NGOs in impact investing?

‘Leave impact investing to the professional

investor; don't dabble if you are an NGO!’ says

Mark Joenje of ICCO Investments, having learnt

hard lessons as an NGO investor. NGOs should

instead leverage their skills as a partner.

Countering the view that NGOs should not invest

directly, Deirdre O’Sullivan-Winks from Christian Aid

explains how ACRE invests in enterprises, brokers

support, and de-risks investment for more

commercial investors.

NGOs understanding of local context is a huge

strength for any investor. But their focus on needs

not opportunities is a distraction from investor

perspectives. Jaap Jan Verboom explains how ICCO

seeks the best of both business and NGO worlds

through three sister organisations: an NGO working

in value chains, an accelerator developing business

skills, and an investor branch.

With the aim of improving the biomass energy

sector, GERES partners with informal producers and

larger businesses. Their NGO role has helped

catalyse results-based financing to drive investment

into the sector.

But does it reach 'the poor'?

Our Editor's Choice this month tackles one of the toughest issues in inclusive

business, which can either drive or deter NGO involvement: does inclusive business

actually reach the poor, or can partnership help it to do so? Deloitte provides data of

where it does, and some insight on why.

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The views presented here are those of the authors and do not necessarily represent the views of IBAN or the partners, and do not constitute professional advice. We welcome feedback on our publications – please contact us at enquiries@inclusivebusinesshub.org.

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