A. It is a competitive program designed to identify promising business models that engage with the base of the pyramid in Latin America and the Caribbean and to help top-tier businesses achieve long-term commercial success and corporate leadership in serving low-income markets. It includes multiple elements, including:
A. Latin America and the Caribbean have witnessed significant growth in profitable business activities that focus on its “majority market” – the 360 million people, accounting for 70% of the region’s population, whose income is less the US$300 per month – or defined in most countries as belonging to categories C2 and D. However, despite successful innovations in serving ‘base of the pyramid’ (BOP) markets, and some notable initiatives by medium and larger sized companies, there are still large opportunities to serve this market, with a total income of approximately $500 billion per year. The IDB’s Opportunities for the Majority Sector and Dalberg Global Development Advisors have created the Corporate Leaders Program to help companies to tap into these opportunities, which can improve companies’ bottom lines as well as improve the lives of low-income populations in the region.
A. Companies participating in the Corporate Leaders Program must have an annual turnover of more than US$30 million and must have the majority of their capital coming from one or more of the IDB’s 48 member countries. Ideas proposed must be targeted at one or more of IDB’s 26 borrowing member countries. For complete listings of countries, and other detailed eligibility requirements, please visit majoritymarkets.org/corporateleaders/eligibility-criteria.
A. Through its Opportunities for the Majority initiative, the Inter-American Development Bank (IDB) promotes and finances private sector business models that develop and deliver quality products and services, create employment, and enable low income producers and consumers to participate in the formal economy. The objective is to stimulate economic growth and raise the incomes of the 360 million people in Latin American and the Caribbean who are at the “base of the pyramid”. The Bank offers resources, expertise, more than 50 years of multilateral financing experience and a network of 26 country offices in Latin American and the Caribbean to help clients rethink their business strategies to focus on broader development opportunities and build commercial success by resolving unmet demand in underserved markets. IDB’s Opportunities for the Majority initiative offers financing for eligible projects through loans, partial credit guarantees, technical cooperation and a multi-donor grant-making trust fund. For more information, visit www.iadb.org/om and www.majoritymarkets.org.
A. Dalberg is a global management consulting firm, specializing in private and public sector strategies for emerging and frontier markets. Dalberg works with corporations, international institutions, governments and NGOs on strategic planning, organizational development and developing new initiatives and business ideas. Dalberg’s work for corporate leaders in emerging markets has covered a wide range of topics, including identifying and evaluating specific business opportunities, understanding specific markets, building and strengthening linkages with local enterprises, and creating public-private partnerships. Past clients with whom Dalberg has worked on BOP ideas include leading companies in healthcare, natural resources, financial services and agribusiness. The firm has also worked closely with leading public and private investors in emerging markets to shape BOP strategies, establish investment funds and evaluate specific opportunities. Dalberg's consulting staff offer a unique value proposition to clients, as they all combine experience with top-tier private sector management consultancies and investment banks, academic qualifications in business, policy and economics from the world's leading institutions and direct knowledge of developing countries. The firm operates from nine locations worldwide, including New York, Washington DC and Santiago. For more information, visit www.dalberg.com.
A. The BOP Modeling Workshop will have a very practical focus on helping participants generate ideas for how their companies can sell to BOP consumers or reduce costs by working with BOP businesses or employees. It will avoid the usual lecture format, and instead concentrate on working sessions in which participants brainstorm and develop ideas both together and with support from IDB and Dalberg experts.
A. The daylong workshop will take place at the Four Seasons Hotel in Miami on Monday, July 19. Companies should register to attend by Monday, July 12.
A. Registration must be done on the Corporate Leaders Program website at majoritymarkets.org/corporateleaders/workshop-registration. Companies planning to attend must meet all the eligibility criteria for the program as detailed on the website.
A. There are no registration or attendance fees for the BOP Modeling Workshop. Participants will have to arrange and pay for their own travel to Miami and their own accommodation during the workshop.
A. The Corporate Leaders Program will offer an intensive mentoring and technical assistance support package to up to ten companies whose BOP business concepts are judged to have the highest potential for success. It will help these companies translate their ideas into practical business and operations plans, ready for financing and implementation. Companies will be able to draw upon Dalberg's and IDB's expertise to overcome know-how and other challenges typically associated with BOP project preparation. Each selected company will work with Dalberg to design an individualized plan for how it will use up to 15 days of consulting support from Dalberg. Four possible models for this consulting support are available at http://www.majoritymarkets.org/node/229; however, these are intended only as guides and each participating company will be able to determine exactly how it wishes to use the support from Dalberg.
A. Applications for the Corporate Leaders Program will be due by 6 pm EST on Monday, August 16. Announcements of selected companies are expected to be made by the end of September. Companies will work to develop business plans, with support from Dalberg and IDB, during the fall of 2010, and will be expected to complete their plans by the end of 2010 or early 2011.
A. Applications should be completed in Microsoft Word using the application form, which is available in both English and Spanish. Completed applications must be submitted via e-mail to application@majoritymarkets.org by 6 pm EST on Monday, August 16.
A. Yes. Companies may submit as many eligible business ideas as they wish.
A. Please submit only one business idea per application. If your company wishes to propose multiple ideas, please submit a separate application form for each idea.
A. Companies selected for the Corporate Leaders Program are required to contribute US$15,000 towards the cost of the technical assistance and consulting support offered by Dalberg. This represents a significant discount on the value of the services (estimated total value of at least US$50,000). In addition, companies should expect to dedicate significant staff resources to develop their proposed BOP business idea if selected for the program.
A. If selected for the Corporate Leaders Program, companies should expect to dedicate sufficient staff resources to develop their proposed BOP business ideas, including conducting relevant research and business analyses and writing a full business and operations plan. The support from Dalberg and IDB is intended to add value to the company’s work, but it is not intended to conduct the bulk of the idea development work itself. In addition, companies are required to contribute US$15,000 towards the cost of the technical assistance and consulting support offered by Dalberg, which is a significant discount on the estimated value of US$50,000 for the services to be provided.
A. Proposals will be evaluated by a panel that will include staff from the IDB and from Dalberg, as well as external experts. Participants will be selected based on the potential impact of the business idea, the viability of the business concept, and the level of corporate commitment. The IDB will also seek to ensure that the selected companies and ideas represent a diverse cross-section of countries and sectors, and that there is a mix of companies with and without significant past experience in BOP markets.
A. The BOP Modeling Workshop and the Corporate Leaders Program are independent activities, i.e., your company can participate in the Workshop but not apply for the Program, and vice versa. Nevertheless, the Workshop will be designed to help participants generate ideas which could subsequently be submitted in applications to the Corporate Leaders Program.
A. The Corporate Leaders Program is designed to prepare companies to apply for such financing from IDB, should they wish to do so on completion of the program. However, participation in the program does not guarantee that a company’s application for IDB financing will be approved.
A. Companies may participate in the Corporate Leaders Program without any obligation to become clients of the IDB later on. The program should help companies prepare business plans that would enable them to apply for financing from the IDB, should they wish to do so: however, participation in the program would not necessitate applying for financing from the IDB, nor does participation guarantee that a company’s application for IDB financing would subsequently be approved.
A. The BOP Modeling Workshop will involve a mixture of plenary sessions, small group brainstorming sessions, and opportunities for participants to get one-to-one advice from the facilitators. The small group sessions will mix companies that operate in different sectors and countries, to maximize the ability of participants to share ideas. Of course, participants will be free to discuss or not discuss whatever ideas they wish to at the Workshop. All ideas and corporate information provided on applications for participation in the Corporate Leaders Program will be kept confidential. Companies that are selected for the program will be able to determine what information, if any, is presented at any events or other media opportunities related to the Corporate Leaders Program.
A. If you have questions not answered here, please send an email to corporateleaders@majoritymarkets.org.
