In March, Endeva invited to a practitioner workshop to discuss the emerging trend of corporate impact venturing and develop an action plan on how to drive the practice forward.
The base of the global economic pyramid (BoP) market presents a US$5 trillion opportunity. Corporations have a clear incentive to innovate in these BoP markets in developing countries but often struggle to establish successful models as a result of internal bureaucratic hurdles and lack of market insight. In the meantime, inclusive business models operating in BoP markets cannot scale effectively due to a lack of financing and business expertise.
A promising route to overcome both inclusive businesses and corporations’ challenges is a Corporate Impact Venturing strategy. By investing into local business, corporations can learn about low-income markets and relevant business models and tap into growth opportunities while hedging their risk of failure. On the other hand, local inclusive businesses get access to finance to grow their business and may receive access to useful management knowhow, complementary technologies, and new markets.
The practitioner workshop provided participants with a broad overview of the practices and dived into the details of the different corporate impact venturing models in parallel workshops. For a detailed summary, please click here.