Administrative title

Journeys to Scale

An Evidence-Based Framework and Comparative Analysis of Eco-Inclusive SMEs
Authors (text)
Ebert, Luis and Mirko Zürker
2021 | Berlin: SEED c/o adelphi research gGmbH
Hero Media
mockup of the SEED report "Journeys to Scale"

Contact

adelphi Mitarbeiter Mirko Zuerker

Mirko Zuerker

Senior Manager + Acting Co-Lead Green Entrepreneurship
Paragraphs
Text

Eco-inclusive small and medium-sized enterprises (SMEs) focus on providing socially inclusive and environmentally sustainable impacts and are important agents in the global confrontation against environmental degradation as well as for the inclusion of socioeconomically marginalised communities in global value chains. To provide some insights into the business journeys and characteristics of these enterprises, this report delivers a comprehensive typology on eco-inclusive SMEs. 

Creating social and environmental impacts

Just like conventional SMEs, eco-inclusive enterprises similarly play an important role for socioeconomically marginalised communities in low- and middle-income economies by including low-income and vulnerable groups in their value chains as employees, suppliers, distributors, or consumers. What makes them different from conventional SME, are the green products and services they provide, enabling them to have greater social and environmental impacts.

As research on them is limited, the following typology aims to provide a better understanding of the archetypes which make up the eco-inclusive SME subgroup. The typology is informed by over 20 years of supporting more than 1,000 eco-inclusive entrepreneurs in Asia, Africa and the Americas, enriched by in-depth interviews.

While the following SME profiles are idealised enterprise types which do not and cannot capture the diversity and complexity of these SMEs, this simplification might support a better understanding of the realities of eco-inclusive SMEs on their respective journeys to entrepreneurial success.

Headline
Four distinct eco-inclusive SME archetypes

Accordion Items
Image
infographic displaying the impact eco-inclusive MSMEs have on local communities
© SEED
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Even though a typology essentially groups the enterprises and certain characteristics to highlight certain similarities, this methodology first and foremost aims to reveal the diversity of eco-inclusive enterprises and their corresponding support needs. To unlock the full potential of these enterprises, the support needs to be tailored to the respective needs of each enterprise “type”.

To effectively support future enterprises in reaching entrepreneurial success and scale, this report explores the pathways of existing SMEs, deconstructs them and groups the challenges they encountered and solutions for overcoming them. Enterprises are dynamic and might change their pathways over time. However, while acknowledging that the following five journeys are, in reality, often intertwined, they can be leveraged as analytical tools to provide insights into the SMEs’ respective pathways to success.

Headline
Five journeys to entrepreneurial success

Accordion Items
Image
graph showing the growth trajectory of eco-inclusive SMEs. Disruptors and impact drivers have the biggest growth trajectory.
© SEED
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Despite this report only being a first attempt to understand eco-inclusive SMEs by outlining an idealised typology, it is a first step towards catering for the diverse needs of these enterprises on their journeys to entrepreneurial success. This being only a starting point, research on eco-inclusive SMEs will hopefully expand and validate the claims made in this report.

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Cover Journeys to Scale
© SEED c/o adelphi research gGmbH

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Fields of Action
Green Entrepreneurship

Contact

adelphi Mitarbeiter Mirko Zuerker

Mirko Zuerker

Senior Manager + Acting Co-Lead Green Entrepreneurship
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