AVINA, FUNDES and WRI Create Network for Inclusive Markets
AVINA, FUNDES and the
World Resources
Institute (WRI) created the Network for Inclusive
Markets to generate businesses that create social inclusion,
environmental value and economic prosperity on a significant
scale throughout Latin America by promoting inclusive
business involving low-income communities, MSMEs, large
companies, civil society, and governments.
In 2008 the network organized a session on the Business
of Inclusion at the Sixth Inter-American Conference
on Corporate Social Responsibility, sponsored by the
Inter-American Development Bank and held in Cartagena,
Colombia. The session focused on innovative tools and
mechanisms for creating new business models and included
presentations by successful inclusive businesses from
around the world, such as SBA Hydro and Renewable
Energy Pvt. Ltd from India, Arme Fácil of
MASISA-Venezuela, and Dignified
Mobile Toilettes from Nigeria.
The network launched
a collaborative tool on the www.nextbillion.net/espanol
Web site that emphasizes the role of private enterprise
models and business discipline in the fight against
poverty and environmental degradation.
“The challenges of sustainable
development are unlimited, important and increasingly
urgent. I think we are heading toward a period of many
difficult challenges for the world at large and for
Latin America particularly, and I think that during
these times a healthy economic foundation can only come
from a large number of competitive MSMEs that are capable
of learning and improving.”
-- Stephan Schmidheiny
Founder of AVINA and FUNDES
Driving Latin America’s Economy
In spite of their important contribution to reducing poverty and inequality in the region, MSMEs are faced with multiple challenges to their growth and sustainability.
There are over 18.5 million micro,
small and medium-sized enterprises (MSMEs) in Latin America
that, according to the World Bank, are responsible for providing
employment to 61 million people (or 70% of the regional workforce),
contributing almost 50% of the region’s gross domestic
product. They comprise the highest percentage of Latin America’s
productive sector, while large companies make up only 0.2%.
At the same time, there are 360 million people living in poverty
in the region, who have no access to basic services, do not
benefit from the global market economy, and who represent
an important business opportunity for MSMEs.
Despite their important role in reducing poverty and inequality
in the region, MSMEs face many challenges to their growth
and sustainability. These range from difficulties in obtaining
loans to the need to strengthen their trading capacity and
business practices through consulting services and training
that are often beyond their means. FUNDES,
a non-profit organization created 25 years ago by Stephan
Schmidheiny, who also founded AVINA, promotes the competitive
development of Latin America’s MSMEs, providing comprehensive
business development services and thus contributing to the
region’s sustainable development.
AVINA is FUNDES’ main ally, providing not only economic
support, but also serving as a strategic partner in technical
cooperation, seeking synergies and working toward a continental
strategy for inclusive businesses. “AVINA’s constant
support allows us to eliminate barriers between countries,
discover new markets for our activities, and gives us access
to global institutions. AVINA is thus a key element in the
consolidation, strengthening and sustainability of our organization,”
commented Ulrich Frei, Executive Director of FUNDES International.
The following are among FUNDES’ many achievements in
2008 that stem from AVINA support:
A supply-chain
development program in Chile and Colombia that benefited
127 MSMEs directly and 2,000 people indirectly.
A business fair program
to stimulate business opportunities, in which 73 large
companies in Chile and Guatemala participated, benefiting
647 MSMEs directly and more than 9,000 people indirectly.
A local economic development
program in Bolivia created two centers for economic services,
resulting in a USD 5.3 million increase in sales and generating
private investments in excess of USD 600,000, directly
impacting 200 MSMEs and 4,229 families.
In the field of horizontal
integration of production in El Salvador, 22 partnerships
were established to increase the competitiveness of participating
companies and the quantity and quality of job creation,
directly affecting 192 MSMEs and more than 1,400 people.
