Overview

Inclusive Business Solution (IBS) is a project that solves social development issues that low-income group in developing countries faces. It also provides opportunities for employment and business; it is based on a strategic partnership that meets the business need of corporations. IBS partners with low-income group in developing countries in various ways, as distributors, sellers, or consumers.

Specifics

• Applications open at least once a year
• Secure funds via matching fund method between KOICA and private partners (fund share varies depending on the size of partnering corporations)

Designing Inclusive business model

• KOICA and corporate partners seek ways to link companies' business strategies to development cooperation projects.

A model is designed together to either include BOP* members in the business value chain or provide new products and services, in order to draw positive results for both companies and BOP.

Inclusive business implementation

• KOICA and corporate partners plan a joint matching fund to operate inclusive business model.
• Various activities are initiated to create jobs, generate income, and provide high-quality products and services affordable to BOP

Performance evaluation

• KOICA and corporate partners evaluate financial performance and development results together.

* Bottom of Pyramid (BOP) Low-income group with an annual income less than $3,000 and those with restricted access to basic products and services. BOP, however, has a great potential as it accounts for 70% of the entire global population (4.5 billion) and the size of the group's consumption market reaches $5 trillion.

Participants

• For-profit corporations in Korea : Eligible to participate
• NGO/NPOs in Korea : Eligible to participate if established by a for-profit corporation
• Preliminary social enterprises : Must be a corporation and designated as a preliminary social enterprise by the director of a central government agency or the head of a local government
• Social enterprises : Must be a corporation and certified by the Minister of Employment and Labor
• Public sector & civil organizations : Not eligible to participate independently, Eligible to participate only if signed a consortium with a for-profit corporation or a social enterprise

Support performance

KOICA has secured 92.4 billion KRW (48.2 billion by KOICA and 44.2 billion by corporations) for development funds from 2010 to 2017. KOICA cooperated with 84 companies and conducted 110 projects in 28 countries in the areas of education, agricultural development, health, technology, environment, and energy.

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