This latest research by Monitor Deloitte, supported by a range of social investors including Shell Foundation, analyses the barriers to scale for market-based solutions to poverty – and what we can learn from the (rare) instances where they have been overcome.
Based on a year-long effort that encompassed hundreds of interviews, site visits and Monitor Inclusive Market’s own experience of creating and growing inclusive businesses in India, the report:
- Describes the key scaling barriers that lie both within and outside the firm, and explains why they often cannot be resolved by the firms themselves;
- Spotlights the crucial role played by industry facilitators that are typically not themselves market participants but help to resolve key scaling barriers for the benefit of whole industries, not just single firms;
- Analyses historical and ongoing cases where such business models are scaling or have scaled, to better understand the principles and practices that underpin effective industry facilitation;
- Explains the new risks that emerge even after scale has been achieved, and explores the challenge of mitigating those risks and sustaining scale;
- Provides practical recommendations for foundations, aid donors, intermediaries, multilateral development agencies, impact investors, companies and host governments.
Our own work to create a market for the sale of clean cookstoves in India features as a case study.