Opportunities for Business
Entering a partnership with innovative citizen sector organizations is an opportunity for business interested entering low-income markets more effectively.
By partnering with innovative citizen organizations, businesses can reach low-income markets more effectively. In the last three decades, millions of citizen sector organizations have emerged to create positive social change and social entrepreneurs have been at the forefront of developing innovations to serve low-income citizens. Social entrepreneurs are therefore uniquely positioned to make substantial contributions to companies eager to invent a new way of doing business. The assets and innovations of social entrepreneurs will help overcome the traditional barriers to enter these markets (limited market data, nonexistence of traditional distribution channels, limited disposable income, need to aggregate demand, illiterate population, etc.). Partnering with social entrepreneurs makes not only business sense but it enables the delivery of a holistic solution to low-income communities beyond mere products or services, to create an actual social transformation at the grassroots level.
Ashoka's "theory of change" is based on innovative business-social partnerships to create social impact at the bottom of the pyramid.
We believe that opportunities at the bottom of the pyramid can be best captured if business and social organizations join forces on a long-term basis. This is the "theory of change" that we want to test and validate with innovative partners. We made the choice to focus on goods and services that meet basic needs of low-income communities and create a clear positive difference in the lives of the poor. Our ultimate goal is to leverage the power of companies to create social change on a broader scale, bridge the artificial historical gap between business and social organizations and strengthen the citizen sector by tapping into new sources of funding and creating new skills.
Income derived from Hybrid Value Chain partnerships will allow citizen sector organizations to advance their social mission further.
Although CSOs are not allowed to turn a profit, they all have operating expenses, as well as scaling up expenses to expand their programs and increase their social impact. Generating income from initiatives aligned with their social mission enables CSOs to diversify their sources of funding and move from donor dependence to greater sustainability. Hybrid Value Chain partnerships are an opportunity to achieve this goal as social partners generate revenues for the value they bring to the business partnership. Moreover, the product or service provided to low-income communities in collaboration with the business can ideally complement existing services of the CSO.
Business-social collaborations are an integral part of Ashoka's philosophy and vision
Since its inception 25 years ago, bridging the business-social gap has been a core strategy of Ashoka to create a more competitive and integrated citizen sector. It has been an integral component of several programs such as the Citizen Base Initiative, the E2 program, and the business plan competition organized in collaboration with the management consultancy McKinsey. We believe that both social and business entrepreneurs will greatly benefit from sharing experiences and best practices and that the artificial historical divide between the business and citizen sectors has been harmful to society. Hybrid Value Chains suggest another model for commercial long-term partnerships between innovative citizen organizations and large businesses to provide improved and sustainable solutions for low-income citizens and their families.
Ashoka wears numerous hats, from partnership designer to matchmaker and broker.
In the initial phase, the goal of Ashoka's Full Economic Citizenship is test 6 to 8 Hybrid Value Chain collaborations where our role can range from a 'matchmaking service' to a consultancy or a more formal broker. We focus most of our resources on these selected pilots, with the intention that successful demonstration of the model will move the social and business sectors towards a tipping point where self-replication of Hybrid Value Chain collaborations is the norm: these collaborations are widely implemented by businesses and citizen organizations and are promoted by consultants and academics. However, beyond these few pilots, we also want to create a larger learning community of business and social entrepreneurs to develop the tools and expertise needed to engage in hybrid partnerships independently.
Get Engaged!
Interested in developing your own Hybrid Value Chain™ partnership or partnering with Ashoka on one of our few pilot projects? Start by gauging your readiness through the following questions.
Are you interested in pioneering a new way of operating that truly meets the needs of business and society?
Does your company have the potential to provide critical products or services to billions of low-income consumers around the world?
Is entering new markets one of your strategic priorities?
Is your organization committed to developing an innovative initiative that will generate profit while serving millions of underserved consumers?
Join our community of business and social entrepreneurs and become a market leader in this exciting new field!