This week the World Business Council for Sustainable Development (WBCSD) published a brief titled "Promoting Small and Medium Enterprises for Sustainable Development." I recommend reading it because it gives good ideas and advice to governments, large corporations, and the local community on how to support SMEs.

Because of the nature of NextBillion.net and our business-focused approach, it is important to mention the specific messages in the briefing, such as:

Building supply chain capacity
Rationalizing procurement procedures
Strengthening local distribution networks
Improving standards
Improving environmental performance
Providing access to financial services

Since SMEs are the backbone of most developing countries’ economies, governments and corporations need to find ways of synergizing with these SMEs and therefore create local sustainable growth. SMEs offer jobs to most of the population in these countries:

In OECD economies SMEs and mircroenterprises account for over 95% of firms, 60-70% of employment, 55% of GDP and generate the lion’s share of new jobs. In developing countries, more than 90% of all firms outside the agricultural sector are SMEs and microenterprises, generating a significant portion of the GDP.

SMEs create opportunities at a local level, as the WBCSD publication says, governments and large corporations should collaborate with SMEs building a bridge between the local community and the larger economy. An enhanced cooperation between the government, big corporations, the local community, and SMEs will be beneficial to local entrepreneurs in the BOP and will also create sustainable forms of development at a local level.

Many other SME reports talk about innovation, finance and stay very general and can be over the top. In contrast, this report is very detail oriented which helps companies make direct changes, such as in procurement procedures, supply chains, and local distribution networks. The WBCSD report is a worthwhile read because they are actually getting in to detail while other reports leave it pretty general.

The OTF group has launched a new initiative: The Pioneers of Prosperity Grant and Award Program. A partnership between the OTF Group and the John F. Templeton Foundation of the United States, the competition promotes companies in East Africa and identifies and cultivates local role models that act as examples of prosperous and sustainable businesses in their country/region. Businesses from East African countries including Kenya, Uganda, Tanzania, Burundi and Rwanda can participate.

This "Prosperity Award" will be granted to the five pioneers of the program. Each will receive a grant of $50,000 USD to re-invest; semi-finalists and finalists will receive media coverage by one of the competition sponsors: Pulse Experientia Ltd.

OTF seeks to encourage for-profit companies that provide high wages to their workers and that operate in sustainable ways for the living environment of future generations in Africa.

The competition is open to all businesses that employ more than 10 full time staff, earn $100,000 - $10 million in revenues per annum, are profit motivated, have been profitable for the last four quarters in a row, receive outside funding, but do not rely solely on donor funding.

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Note: We were notified that the version of the case study, What Works: Scojo India Foundation, released on 6/20/07 was found to have citation errors. The case study has since undergone revision and is now again available for downloading. The version available here is the authoritative final release of the case.

We're very excited to announce the release of a new, full-length case study, What Works: Scojo India Foundation.

We've often discussed on NextBillion the innovative work of Scojo Foundation, a non-profit operating networks of "Vision Entrepreneurs" who are selling reading glasses directly to rural, low-income communities worldwide.

The case study, authored by Sachin Kadakia ('07) and Nico Clemmink ('08) of Columbia Business School, provides in-depth analysis of Scojo India Foundation's business environment, operations, and best practices.

Scojo India Foundation began operations in 2003 and has recruited over 400 entrepreneurs, who have sold more than 50,000 pairs of glasses. The case study details the partner networks and business strategies that have enabled Scojo's success, as well as the challenges and growth opportunities that remain.

This case study was made possible through the support of the Horace W. Goldsmith Foundation and Social Enterprise Program at Columbia Business School.

Read the full case study.