Development Focus Area I Issue Brief

Promoting Small

and Medium

Enterprises

for Sustainable

Development

About the WBCSDThe World Business Council for SustainableDevelopment (WBCSD) brings together some 200international companies in a shared commitment tosustainable development through economic growth,ecological balance and social progress. Our membersare drawn from more than 30 countries and 20 majorindustrial sectors. We also benefit from a globalnetwork of about 60 national and regional businesscouncils and partner organizations.

Our mission is to provide business leadership as acatalyst for change toward sustainable development,and to support the business license to operate,innovate and grow in a world increasingly shaped bysustainable development issues.

Our objectives include:

Business Leadership – to be a leading businessadvocate on sustainable development;

Policy Development – to help develop policies thatcreate framework conditions for the businesscontribution to sustainable development;

The Business Case – to develop and promote thebusiness case for sustainable development;

Best Practice – to demonstrate the businesscontribution to sustainable development and sharebest practices among members;

Global Outreach – to contribute to a sustainable futurefor developing nations and nations in transition.

About SNVSNV is a leading, Netherlands-based, internationaldevelopment organisation with more than 900technical advisors located in 90 offices in more than30 developing countries, that provides strategicadvisory, knowledge and advocacy support servicesto more than 1800 public, private and social sectororganisations in Africa, Asia, the Balkans and LatinAmerica to accelerate and sustain their fight againstpoverty.

Our mission: SNV is dedicated to a society where allpeople enjoy the freedom to pursue their ownsustainable development. Our advisors contribute tothis by strengthening the capacity of localorganisations.

Our impact focus: SNV is committed to catalysingimpact through the promotion and improvement ofincome generation, employment and production(through competitive, value-added market chains) for low income communities and increasing theaccess and sustainability of basic services with aparticular concentration in health, education, waterand sanitation and renewable energy for theseunderserved communities.

Our beliefs: Poverty results from unequal access toresources and power, between different social andcultural groups and between men and women. SNVbelieves the basic purpose of development is toenlarge people’s choices; to create an enablingenvironment for people to enjoy long, healthy andcreative lives.

The fight against poverty needs strong organisationsthat serve the interests of the poor and are able tochange the structures that sustain poverty. SNVworks with organisations that operate at district andprovincial level and function as linking pins betweennational policies and frameworks and the peopleliving in towns and communities. Its clients includeprivate, governmental and civil society organisations.

IntroductionGlobal wealth has almost doubled since 1990, but

nearly half the world’s population subsists on less than US$ 2

per day. Poverty remains a major challenge to sustainable

development, environmental security, global stability and a truly

global market. The key to poverty alleviation is

economic growth that is inclusive and reaches the majority of

people. Improving the performance and sustainability of local

entrepreneurs and small and medium enterprises (SMEs), which

represent the backbone of global economic activity, can help

achieve this type of growth.

This Issue Brief explains how governments can help

alleviate poverty by focusing on SMEs and how larger

corporations can help themselves by including SMEs in

their value chains. It describes some of the comparative advantages

of SMEs and the challenges they face in developing countries.

“Wealth creation, one of

the core competencies of

the private sector, is a vital part of

the poverty alleviation process.”

A Business Guide to Development Actors (WBCSD, 2004)

2

In OECD economies SMEs1 andmicroenterprises2 account for over95% of firms, 60-70% ofemployment, 55% of GDP andgenerate the lion’s share of newjobs. In developing countries, more

than 90% of all firms outside the agricultural sector areSMEs and microenterprises3, generating a significantportion of GDP. For example, in Morocco, 93% ofindustrial firms are SMEs and account for 38% ofproduction, 33% of investment, 30% of exports and46% of employment. In Bangladesh, enterprises of lessthan 100 employees account for 99% of firms and 58%of employment. Similarly, in Ecuador, 99% of all privatecompanies have less than 50 employees and account for55% of employment4. Not all these SMEs and

0%

10%

20%

30%

40%

50%

60%

70%

EmploymentGDP

Low income countries

Middle incomecountries

High incomecountries

PromotingSMEs for

SustainableDevelopment

For governmentsWell-managed and healthy SMEsare a source of employmentopportunities and wealth creation.They can contribute to socialstability and generate tax

revenues. According to the International FinanceCorporation (IFC)6, there is a positive relationshipbetween a country’s overall level of income and thenumber of SMEs per 1,000 people. The World Bank’sDoing Business reports indicate that a healthy SMEsector corresponds with a reduced level of informal or“black market” activities.

For large corporationsSMEs can constitute an important source of localsupply and service provision to larger corporations.They usually have extensive local knowledge ofresources, supply patterns and purchasing trends.Developing countries also represent a huge, largelyuntapped market for large corporations. By workingclosely with SMEs, large corporations can develop anew customer base that may not be accessible to thetraditional distribution networks of these corporations.

SMEs also represent an important source of innovation.They tend to occupy specialized market “niches” andfollow competitive strategies that set them apart fromother companies. This might include re-engineeringproducts or services to meet market demands, exploringinnovative distribution or sales techniques, or developingnew and untapped markets. This often makes them good

Where and how

many?

Why we need SMEs

Figure 1: SME contribution to employment and GDP (median values)

microenterprises are in the formal sector; some occupythe unofficial labor market, which varies in size from anestimated 4%-6% in developed countries to over 50% indeveloping nations.5

Source: World Bank

partners for largecorporations.

For the financial sector,emerging economiesrepresent a huge potentialmarket for credit, particularlyin sub-Saharan Africa where,according to the UnitedNations CapitalDevelopment Fund(UNCDF), only 4% ofAfricans have a bankaccount.

Local financial institutionsthat have successfully served the SME market indeveloped countries have found it highly profitable,according to United Nations Conference on Trade andDevelopment (UNCTAD).8 Large international bankinggroups are beginning to tap into these markets. TodayBarclays Bank is present in 12 African countries, employs41,000 people – one-third of its total workforce – andhas 8 million customers. Africa accounts for 13% of thegroup’s profits. Barclays has worked to integrate SMEsinto its operations.9

In their efforts to localize value creation, WBCSDMembers increasingly rely on local companies as acrucial component of their value chain. The graphicbelow highlights some of the capacity building activitiesof Members who have engaged actively with SMEs.

“Industry,government, non-

governmentalorganizations need to

work together,leveraging the

competencies eachbrings to the table.Most importantly,

this should includelocal production,

local talentdevelopment and local

entrepreneurship.”7

Gerard Kleisterlee, President and CEO,

Royal Philips Electronics

3

PromotingSMEs for

SustainableDevelopment

as women and young people, who usually make up thegreatest proportion of the unemployed in emergingeconomies. Their flat management structures mean thattheir personnel must fulfill multiple roles, which makesthem less vulnerable to unemployment during periodsof economic downturn. Their small size and flexibilityallow them to adjust to local market fluctuations and toweather local market shocks more comfortably.

Development Focus Area website atwww.wbcsd.org/web/development.htm �

Development case studies online atwww.wbcsd.org/web/dev/cases.htm �

Business for Development at www.wbcsd.org/web/publications/biz4dev-reprint.pdf �

Field Guide at www.wbcsd.org/web/publications/sl-field-guide-reprint.pdf �

Finance Guide at www.wbcsd.org/web/publications/sl-finance.pdf �

For local communitiesSMEs often have a vested interest in communitydevelopment. Being local, they draw upon thecommunity for their workforce and rely on it to dobusiness. For the communities, they provide goods andservices tailored to local needs and at costs affordable tolocal people. They are an important source ofemployment, particularly for low-skilled workers, as well

SME Sector Company Objective Country Source

Agriculture &Forestry

Aracruz CelulosePartnering with local farmers to develop new, sustainable timberplantations

Brazil �

DuPontForward payments to corn farmers to improve cash-flow andenable purchasing of supplies

Colombia �

SC Johnson Sourcing pyrethrum for insecticide directly from local farmers Kenya �

SonaeRehabilitating neglected coffee farms to produce and market fairtrade coffee

East Timor �

Industrial

BPEnterprise center to build capacity and create employment among local companies

Azerbaijan �

BPBuilding capacity to meet the company’s engineering andconstruction needs

Trinidad &Tobago �

CEMEX Investing in small construction stores by providing capital for new storefronts, computers, inventory-tracking software, andmanagement skills.

Mexico �

DaimlerChryslerLocal and sustainable sourcing of raw materials for automobileproduction

Brazil andSouth Africa ��

Eskom Integrating local SMEs into its supply chain South Africa �

LafargeTraining local youths to become masons and secure employmentin the building industry

India �

Rio Tinto Encouraging employment among Aboriginal communities Australia �

Rio TintoCapacity buildling for SMEs to assist them to become self-reliantviable suppliers

South Africa ��

Services

Mondi Recycling PPromoting local entrepreneurs in its paper collection & recycling program

South Africa �

Coca-ColaProviding equipment to assist local entrepreneurs to becomedistributors

South Africa �

UnileverEmploying women entrepreneurs to distribute health and hygieneproducts locally

India �

Access toFinance

ABN Amro Providing microfinance to entrepreneurs Brazil �

Anglo AmericanZimele – supporting entrepreneurship by taking equity in local SMEs and building capacity

South Africa �

GE Providing microcredit and finance to SMEs General �

VodafoneCo-investing with local entrepreneurs to establish phone kioskfranchises

South Africa �

4

PromotingSMEs for

SustainableDevelopment

0

5

10

15

20

25

30

35

40

45

50Percentage of official GDP

Africa Central and South America

Asia Transition countries

Highly developed OECD countries

1999/2000

2000/2001

2001/2002

Figure 2: Average size of the shadow economy, in % of official GDP

Source: Schneider, Friedrich. 2005. “Size and Measurem

ent of theInform

al Economy in 110 C

ountries around the World.” W

orking Paper

2005-13. Center for Research in Econom

ics, Managem

ent and the Arts,

Johannes Kepler U

niversity of Linz.

Countries with poor businessenvironments – costly regulations,heavy bureaucracy, poor credit andbanking systems – tend to havelarge “informal” sectors. These areeconomic activities that are

conducted outside the formal regulatory environment.They include everything from casual labor to thrivingSMEs and occasionally illegal activities. According to theWorld Bank’s Doing Business report for 2007, in Bolivia,out of a population of 8.8 million, only 400,000 workershave formal jobs in the private sector.10

For many SMEs, the decision to remain informal isdeliberate, because the costs and procedural burden ofjoining the formal sector outweigh the benefits of stayingin the informal sector. In many developing countries theinformal economy accounts for a significant, but hidden,portion of GDP – anywhere between 30% and 70%.11 Forexample, in Burkina Faso, a country of 12 million people,only 50,000 are employed in the formal sector. However,the country has a thriving informal sector that accounts for38.4% of GNP.12

Informal sectors make large contributions to nations’economies, in both human and financial terms. But being“invisible” to government agencies and formal sectorcompanies, they cannot be easily reached with capacitybuilding improvement schemes, and they cannotcompete for business with larger companies. Workers inthe informal sector lack job protection and benefits suchas access to health and safety provisions, wage

Informalvs formal:

Does itmatter?

SMEs can play a much bigger rolein developing national economies,alleviating poverty, participatingin the global economy andpartnering with largercorporations. They do, however,

need to be promoted. Such support requirescommitments by and between governments, businessand civil society.

The government contributionLike bigger companies, SMEs require a favorableinstitutional framework. Most are overlooked bypolicy-makers and legislators, who tend to targetlarger corporations. SMEs often miss out on taxincentives or business subsidies. They suffer more than

Building betterSMEs

Lower-middle

High-income

Upper-middle

Low-income

0

10

20

30

40

50

60

10080604020

# of SMEs per 1,000 people

Ease of doing business rankings

LowHigh

Source: IFC. M

icro, Small, and M

edium Enterp

rises: A

Collection of Published D

ata. 2006.

protection, insurances,pensions and unions.Informal SMEs also haverestricted access toinvestment and creditfacilities. By being outsidethe formal regulatoryframework, informal sectoractivities cannot be taxed,which represents lostrevenue for governments.As such, informal sectorscan be a barrier to broadereconomic development.

big companies from the large burden and cost ofbureaucracy,13 as few SMEs possess the necessaryfinancial or human resources to deal with this.

Figure 3: Ease of doing business rankings vs. number of SMEs

“While SMEs arecritical to a country’s

long-termdevelopment,

sustainable access tofinance and inclusive

business design arefundamental to

ensuring long-termand equitable poverty

reduction and businessprofitability.”

Robert de Jongh,Regional Director, SNV

President Correa of Ecuador has integrated theWBCSD-SNV Alliance concept of inclusive

business – business opportunities that are bothgood business and benefit low-income

communities – into government policy. Policymeasures include credit lines for the supply chains

as well as financing for technical assistance andinfrastructure for the agricultural sector.

Implement inclusive reformsGovernments need to create the necessary enablingframeworks and relax the burden of regulatory measures.They must simplify business registration procedures andpaperwork to make them cheaper, simpler and speedier.Efforts are also required to tackle corruption. The WorldBank report quoted below notes “reform expands thereach of regulation by bringing businesses andemployees into the formal sector.” The same report alsoconcludes that the greater a country’s ease of doingbusiness, the greater the number of jobs created in the

formal sector “because thebenefits of being formal(such as easier access tocredit and better utilityservices) often outweigh thecosts (such as taxes).”

Provide financial and taxincentivesTo encourage SMEs to join

the formal sector, governments need to provide taxincentives for SMEs and subsidies similar to thoseavailable to large corporations or microentrepreneurs,and to make provisions for start-up funds for SMEs.

Encourage friendly regulatory environmentsGovernments should promote public-private partnershipsto attract venture capital funds and higher levels ofinvestment, and put in place measures to create investor-friendly environments. Big corporations and potentialinvestors need guarantees that their investments andinfrastructure are not going to be expropriated.

Involve business in identifying necessary reformsIncreasingly the business voice is being listened to indecisions aimed at effecting change: “In severalcountries, such as Mali and Mozambique, privatebusinesses now participate in identifying the mostneeded reforms. … The culture of bureaucrats tellingbureaucrats what’s good for business is disappearing.”

5

PromotingSMEs for

SustainableDevelopment

AustraliaUnited States

FranceTurkey

NorwayRwandaUnited Kingdom

KoreaJapanGermanyEl SalvadorChileMexicoRussiaGuatemalaTanzania

ChinaIndiaSouth Africa

NicaraguaNigeriaColombiaHonduras

SpainKenya

EcuadorPeru

GhanaBrazil

Congo, Dem. Rep.

0 20 40 60 80 100 120 140 160 180

Figure 4: Number of days to start a business

Source: World Bank. D

oing Business. 2007.

The high number of days required to start a business is adisincentive to the formalization of SMEs andmicroenterprises in many parts of the world. Countries withlong registration procedures tend to have large informalsectors while those with shorter procedures tend to havecorrespondingly smaller informal sectors.

The business contributionBuilding supply chain capacityThe many large corporations that source their suppliesfrom developing countries require reliable suppliers.Large corporations can help SMEs become more viablebusiness partners by providing training in basic skillssuch as management, bookkeeping, business planning,marketing, distribution, and quality control. They canassist through technology transfers, direct investment ininfrastructure, and the sharing of knowledge. This makesSMEs more competitive and facilitates access to credit.All of this can benefit the large corporations by creatingmore effective and inclusive supply chains.

Build capacityGovernments can contribute to capacity buildingthrough the provision of vocational training, bycreating municipal-level agencies for SME start-updevelopment and management, such as “EnterpriseAdvice Bureaus”, and by encouraging SMEs to engagewith large corporations.14

Procure more goods and services for the public sector from SMEsIn Bolivia reverse trade fairs are held wheremunicipalities market their needs – such as meals forhospitals and schools, cleaning of public buildings – toprospective SMEs who can then bid for business.

“Starting a business isa leap of faith even in

the best ofcircumstances.

Governments shouldencourage the

daring.”

Doing Business in 2006:Creating Jobs (World Bank)

6

PromotingSMEs for

SustainableDevelopment

their individual impact is not significant, it is unlikelythat environmental concerns will figure high on their business agendas. By engaging with SMEs,assisting them with capacity building, and aiding themwith compliance, particularly with environmentalstandards, large corporations can help SMEs integratesustainable development thinking into theirproduction processes and operations.

Providing access to financial servicesSMEs require greater access to financial services andinvestment capital. Large corporations have littledifficulty securing sizeable bank loans and privateinvestments. At the same time, microfinance,consisting of very small loans, tends to benefitindividual entrepreneurs.

SMEs fall in between and often struggle to obtaincredit and loans. Some 90% of entrepreneurs in LatinAmerica are obliged to source much of their financingfrom personal savings according to Inter-AmericanDevelopment Bank (IDB) estimates, a picture truethroughout much of the developing world.

Many financial institutions in the developed and thedeveloping world are reluctant to fund SMEs becauseof perceived risk and high transaction costs.16 SMEs inthe developing world are considered high-risk, as theirmanagers are perceived as lacking managerialexpertise, credit history, and/or tangible assets tosecure loans. Thus loans to SMEs, when they are ableto obtain them, tend to carry higher interest rates andshorter pay-back times.

However things may be changing. Many large banksare now partnering with development agencies andNGOs to serve the SME market. In 2006 for example,Citigroup and the Netherlands Development FinanceCompany (FMO) partnered to launch a US$ 540million risk sharing facility to provide loans to SMEs inlower-income countries. FMO pledged to guaranteeup to 65% of the risk in loans originated by Citigroupthrough its worldwide network. This risk-sharingfacility is a demonstration of how development financeinstitutions and commercial banks can work togetherto promote sustainable growth in developingcountries, a Citigroup spokesperson said.17

“Business is the most important engine of economicchange. It brings employment, goods, revenues,knowledge and skills development. (...) We must

also recognize that the most important role isprobably not that played by the multinationals, but

by the small and medium enterprise sector, theSMEs. We as global companies can provide the

catalyst to partner with SMEs to mutual benefit. We can access their local expertise and markets;

they can access our technologies and business skillsfor local momentum.”15

Michael Pragnell, CEO, Syngenta

Rationalizing procurement proceduresMany global companies use intermediaries to identifylocal suppliers. This can add an extra layer of cost tothe operation, a financial outlay that rarely goes to theoriginator of the goods. It also adds time. By buildingrelationships with SMEs, large corporations can cut outthe middlemen. This helps drive down costs, hastensdelivery and improves quality.

Strengthening local distribution networksSMEs have local knowledge, understand domesticconsumer demands, and have access to remoteregions. By contracting local SMEs to sell anddistribute their products in these markets, largecorporations can help strengthen the sales capacityand income of local SMEs. At the same time, they canstrengthen their own distribution networks and openup new markets for their products.

Improving standardsGlobal companies are increasingly asked about theoperations of their suppliers, and thus can offertransparency along their supply chains. Largecorporations can help their SME suppliers to complywith international standards such as ISO 14001. Such compliance can enable SMEs to compete ininternational markets while at the same timeimproving the overall quality of suppliers to largecorporations.

Improving environmental performance Collectively SMEs have considerable environmentalimpact. However, given the various challenges withwhich they are confronted, and the perception that

7

Key messages to business

� Localizing value creation throughengagement with SMEs is a keycontribution that large corporations canmake to economic development. Thisunderpins their license to operate bycreating a positive local impact, can reducesupplier costs and can be an importantsource of innovation to develop newproducts and reach new consumers.

� Building SME capacity through thelocalization of supply chains requiresleadership from the top, both at thestrategic and at the operational level.However, leadership cannot beoverprescriptive; each initiative needs toadapt to local conditions and find its ownway to maturation and success.

� Facilitating access to finance is critical: thisrequires business to look to what it cando on its own, as well as put pressureboth on its peers in the businesscommunity (particularly the bankingsector) and governments to engage.

� Consider partnering across segments andwith other development actors to facilitateSME development and access to finance.

� Business planning skills, includingtraining in financial management, are essential for successful SMEs.

� Large corporations can also build capacityand encourage environmental stewardshipin the SME sector.

Key messages to government

� A thriving SME sector is critical toinclusive economic growth and jobcreation.

� An enabling regulatory environment iscritical. SME registration and monitoringneeds to be cheaper, simpler, speedier,and more transparent.

� Governments can help address the direneed for start-up funds for SMEs byproviding incentives for SME financing.

� Governments play an essential role inproviding capacity building for SMEs bymeans of vocational training. Businessbelieves that governments could helpfurther by:

✓ setting up municipal-level agenciesfor start-up development andmanagement, in the form of, forexample, an “Enterprise AdviceBureau”, and

✓ helping to promote the importanceof and need for more entrepreneurs.

� Governments can provide advice and anenabling environment to encourageenvironmental stewardship from the SMEsector.

PromotingSMEs for

SustainableDevelopment

8

1. There is no universallyagreed definition of SMEs.Some analyses define themin terms of their totalrevenue, while others usethe number of employeesas an indicator. TheEuropean Union defines a

medium-sized enterprise as one with a headcount of250, a small firm as one with a headcount of less than50 and a microenterprise as one with a maximum of10 employees. To qualify as an SME in the EuropeanUnion, a firm must have an annual turnover of Euro 40million or less and/or a balance sheet valuation notexceeding Euro 27 million, while the annual turnoverof a microenterprise must not exceed Euro 2 million. Inthe United Sates and Canada, SMEs include firms withless than 500 employees.

2. In the EU economy, roughly 93% of SMEs aremicroenterprises (see http://www.unece.org/indust/sme/sme-role.htm).

3. According to the United Nations EconomicCommission for Europe (UNECE), the majority of SMEsin countries in transition are microenterprisesemploying family members or close relatives.

4. Source: African Development Bank and OECDDevelopment Centre. African Economic Outlook (2004-2005).

5. Source: World Bank website: http://lnweb18.worldbank.org/eca/eca.nsf/Sectors/ECSPE/2E4EDE543787A0C085256A940073F4E4?OpenDocument

6. Source: IFC. 2006. “Micro, Small, and MediumEnterprises: A Collection of Published Data”, inNewberry, Derek, 2006. “The Role of Small- andMedium-Sized enterprises in the Futures of EmergingEconomies”. Earth Trends 2006. World ResourcesInstitute under a Creative Commons License.

7. Speech titled “Business growth and value creationthrough sustainable solutions”, delivered by GerardKleisterlee on 20 June 2006 at the Sustainability ForumDialogue in Zurich, see full text athttp://www.newscenter.philips.com/About/News/speechespresentations/article-15457.html

8. UNCTAD. Report of the Expert Meeting on ImprovingCompetitiveness of SMEs in Developing Countries: TheRole of Finance, including E-Finance, to Enhanceenterprise Development. 2001.

9. World Bank, Doing Business 2007: How to reform. 2006.

10. World Bank, Doing Business 2007: How to reform.2006.

11. World Bank. Development Outreach (seehttp://www1.worldbank.org/devoutreach/article.asp?id=287).

12. In Lao PDR business start-up procedures take 198days; in Syria the minimal capital required to register anew business is US$ 61,000, 51 times the averageannual income. Source: World Bank, Doing Business in2006: Creating Jobs. 2006.

13. World Bank, Doing Business 2007: How to reform. 2006.

14. See note 7.

15. Remarks delivered by Michael Pragnell at thelaunch of the publication “Going for Growth: science,technology and innovation in Africa”, at the SmithInstitute in London, on 30 November 2005 (remarksposted on WBCSD website at http://www.wbcsd.org/includes/getTarget.asp?type=DocDet&id=MTkyNDU)

16. Source: Netherlands Development FinanceCompany (FMO).

17. The World Bank’s Doing Business Report 2007: How to reform recommends four steps to successful reform:implement reforms that do not require legislativechanges; abolish unnecessary procedures; introducestandard application forms and publish the maximumregulatory information possible; and use the internet toadminister regulation. For example, Georgia simplified itsbusiness registration procedures by reducing theminimum capital required to start a business from Lari2,000 to 200 (US$ 85); and reduced the number of daysrequired to meet export conditions from 54 to 13.Between 2005 and 2006, business registrations in thecountry rose by 55%. In Africa, Benin, Burkina Faso,Cameroon, The Gambia, Madagascar, Malawi, Mali,Mozambique, Niger, Nigeria and Zambia allimplemented reforms during 2006.

Notes

Through its DevelopmentFocus Area, the WBCSD is seeking to:

� Raise awareness of thebusiness contribution todevelopment, helpingbusiness and non-business

stakeholders understand what is possible by providingcase studies, guides and tools that advance ourunderstanding of development challenges andopportunities;

� Advocate for change by working collaboratively withmultiple stakeholders to create a more enablingbusiness environment and seek synergies betweenofficial development assistance (ODA) and foreigndirect investment (FDI);

� Act by working with our members, RegionalNetwork partners and other stakeholders to brokernew business ventures that are both good businessand good for development. A key element in thiswork is a partnership agreement with theNetherlands Development Agency SNV to broker realand sustainable business in the Andean and CentralAmerican regions of Latin America.

Introduces the business community to potentialpartners in the development community. Thethird in the sustainable livelihoods trilogy, it is afirst port of call for managers who are interestedin working with a development organization,but unsure how to begin. 2004.

A Business Guide to Development Actors

Access to financial resources is a primary obstacleto companies starting sustainable livelihoodsbusinesses. This guide, the second in thesustainable livelihoods trilogy, explores sourcesof finance for pro-poor projects and providesstrategies to access such capital. A blueprint foraction, it presents innovative strategies,opportunities and practical implementationexamples. 2004.

Finding Capital for Sustainable Livelihoods Businesses

Explores how companies are breaking into anuntapped market of over four billion potentialcustomers in developing countries. Written bybusiness for business, this guide is designed forCEOs to send out to operational units in thefield. This is the first of a trilogy of reports onsustainable livelihoods. 2004.

Doing Business with the Poor: A field guide

Illustrates how the private sector is taking anactive role in the achievement of the MillenniumDevelopment Goals. Singling out frameworkconditions as the most important factor affectingbusiness investment, the publication stronglyadvocates focusing investment on a strongregulatory and legal framework, building thecapabilities of local enterprises, and improvingcore infrastructure. 2005.

Business for Development: Business solutions insupport of the Millennium Development Goals

DevelopmentFocus Area

DisclaimerThis brochure is released in the name of the WBCSD and SNV. It is the result of a collaborative effort by members of the secretariat, executivesfrom several member companies, and SNV. A wide range of members reviewed drafts, thereby ensuring that the document broadly representsthe majority view of the WBCSD membership. It does not mean, however, that every member company agrees with every word.

Photo credits World BankCopyright © SNV and WBCSD, July 2007.Printer Atar Roto Presse SA, Switzerland

Printed on paper containing 50% recycled content and 50% from mainly certified forests (FSC and PEFC)100% chlorine free. ISO 14001 certified mill.

ISBN 978-3-940388-07-0

Ordering publicationsWBCSD, c/o Earthprint LimitedTel: (44 1438) 748111Fax: (44 1438) 748844wbcsd@earthprint.comPublications are available at:www.wbcsd.orgwww.earthprint.com

Development Focus Area

Co-chairs: John Manzoni (BP), Jacob Maroga (Eskom), Julio Moura (GrupoNueva)Focus Area Core Team: ABN Amro, AES Corporation, Anglo American, BP, ERM, Eskom, GE,GrupoNueva, Statoil, Toyota, Unilever, Vodafone, The Warehouse GroupDirector: Shona Grant (WBCSD)

www.wbcsd.org/web/development.htm

World Business Council for Sustainable Development – WBCSDChemin de Conches 4 1231 Conches-Geneva, SwitzerlandTel: (41 22) 839 31 00, Fax: (41 22) 839 31 31, E-mail: info@wbcsd.org, Web: www.wbcsd.org

WBCSD North American Office1744 R Street NW, WashingtonDC 20009, United StatesTel: (1 202) 420 77 45, Fax: (1 202) 265 16 62, E-mail: washington@wbcsd.org

Corporate SNV – Netherlands Development OrganisationDr. Kuyperstraat 5 2514 BA The Hague, The NetherlandsTel: (31 70) 344 0244Web: www.snvworld.org

SNV Latin AmericaAv. Coruña y Valladolid N 24-723 Esquina Edificio Galley, Quito, EcuadorTel: (59 32) 223 20 21Web: www.snvla.org