How Can We Achieve Greater Scale and Impact Supporting Small Businesses?

Jane, the use of technology for results reporting is going to transform the way we manage and oversee our government led projects.

Our Standard methodology relies upon midterm evaluation 2 1/2 years into a project followed by a final valuation at the five-year end of a contract for A grant. This does not allow for needed course corrections or overall project productivity.

Mobile technology in particular will allow beneficiaries to take ownership of the results of our development programming.

Technology should not be seen as an enabler in reducing costs, but as a platform to increase the impact and sustainability in developing customers

Humberto, do you think it can BOTH reduce cost and increase impact?

Humberto Cardenas said:

Technology should not be seen as an enabler in reducing costs, but as a platform to increase the impact and sustainability in developing customers

The challenge is how to educate the independent owners of small retailers (Off or On-Premise) with limited education and a distrust for technology! Any suggestions

The U.S. government recognizes that small businesses are the economic driver of our own nation. We even have a small business administration that promotes the use and benefits of working with small businesses in our nation.

Our development programs and our financing of development also recognizes that small businesses are the economic engine for most countries. We therefore have spent a tremendous amount of our resources trying to promote entrepreneurship and small-business development

If the purpose is to create shared value, it is most important to incorporate a post consumption responsibility strategy when scalating markets through rural retailers, if not then it is just business as usual, don´t you think?

From A. Peñate. In the case of 4e, adoptation of tecnology is needed to reduce the costs of training per tendero. When servicing fragmented communities like the informal network of retailers, traditional training is prohibitively expensive.

We have heard that in-person, hands-on support is greatly valued by the retailers. The personal relationships matter. But it is more expensive. Just recently heard of one example where a company is providing the personal touch via webcam.

Carlos L. Smith said:

The challenge is how to educate the independent owners of small retailers (Off or On-Premise) with limited education and a distrust for technology! Any suggestions

Positive incentives are a good way to promote the use of tech for small retailers "tenderos". For example, discounts on products, education kit gifts for kids and family. Family is the drive of a "tendero"...anything in that direction will work



Hi Lina - great to have you following the discussion. Please feel free to comment on the discussion too.

A very active one when we can develop a win (for us and our clients, the governments and population of Latin America) - win intervention (SABMiller in this case). From sharing lessons learned and methodologies the IDB developed in other pilot projects, to cofinance (reimbursable and not reimbursable resources) the implementation. We also always emphasize a lot the need to measure and learn. Another role that many times the IDB is asked to play is the convener and honest broker among multiple stakeholders. Last but not least, our approval processes can sometimes be cumbersome, but they also add rigor to the design phase.

Jane Nelson said:

An unexpected question! Jim and Miguel, what is the role of governments and DFIs in models like 4e to support small businesses?

Camilo, thanks for this question - can you elaborate on what you mean by the "post consumption responsibility strategy"? In a program like 4e, I see the benefit case accruing to the company and to the retailers but you make a good point that there is a bigger loop created here that includes consumers.

Camilo Santa said:

If the purpose is to create shared value, it is most important to incorporate a post consumption responsibility strategy when scalating markets through rural retailers, if not then it is just business as usual, don´t you think?

Hello Jane, this is Sarah McMillan from Youth Business International - just logged in (apologies the website had two start times for the chat - 2.30 and 3.30 GMT) - just reading the inputs and comments so far.

Creating the enabling environment for investors to enter the value chain, providing critical enablers (electricity, affordable broadband etc) and a micro-financing framework to enable access

Jane Nelson said:

An unexpected question! Jim and Miguel, what is the role of governments and DFIs in models like 4e to support small businesses?

OK! Let's move on to the third of the planned question.

Where do policy drivers most need to change to enable small businesses to succeed, and how can companies and their development partners influence these drivers?

From A. Peñate. Carlos, what we have seen is that the children of the tenderos are an ideal bridge for their parents to embrace technology. The way to introduce technology to tenderos is via their children.

One the greatest needs for small business remains access to finance. There has been much discussion for the last decade of the missing middle. There is micro finance available for low scale production and resources for large scale projects but a dirth of funding for anything in between.

Also, business acumen and the development of small business plans remains an obstacle to bankable projects. One of the things the Obama Administration has launched is the Young African Leaders Initiative. Through this program small business leaders are getting the training that they need to create solid business plans. The program will see the creation of Regional Leadership Centers on the continent that will provide: business skills training, finance, and business incubation. The centers will start to open this year.



Carlos L. Smith said:

The challenge is how to educate the independent owners of small retailers (Off or On-Premise) with limited education and a distrust for technology! Any suggestions

Technology alone might not work fully. Complementing the training on-line and/or off-line with advisors that follow-up on the owners of small retailers and how they are actually using the training and technology helps both build trust and also improve the efficacy of the trainings.


Yes, but the increased productivity of small businesses using appropriate technologies, makes a totally marginal variable cost.
Jane Nelson said:

Humberto, do you think it can BOTH reduce cost and increase impact?

Humberto Cardenas said:

Technology should not be seen as an enabler in reducing costs, but as a platform to increase the impact and sustainability in developing customers

YBI is currently using technology in two key ways: one is through the development and roll out of an online CRM to assist support organisations (in our case YBI member organisations) to manage their data around their beneficiaries. This has been an incredibly powerful tool for increasing scale and efficiency in operating terms, and also vastly improves capacity for monitoring impact both at the country level and at the global level.