October 2017 Why and how should NGOs engage with (inclusive ...

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Non-Governmental Organisations (NGOs) are increasingly seeing the importance of incorporating business thinking to achie
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October 2017 The role of NGOs in inclusive business 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.

For World Vision Finland, linking local communities and businesses is a way to secure the sustainability of their project efforts.

 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.

 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? 

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

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. 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. The Agribusiness Booster supports small and growing businesses overcome the ‘Pioneer Gap’

 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.

GERES works with the Government of Myanmar to set up their national standards for improved cookstoves.

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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Our monthly series only go to members on the Hub. Pass this on to others and encourage them to sign up here for free 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 [email protected]. The Practitioner Hub is hosted by the Inclusive Business Action Network.