Publication: Managing for Growth and Inclusion: Four Levels of Capabilities and a 12 Steps Program

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Weber, Johanna Michaela
To build the human capital of the adult population with less formal education and to have them earn income at the same time is a central question for many policy makers. This question is especially burning for women and men living in rural or marginalized locations. In parallel, large retailers are asking themselves how they can create more inclusive value chains while maintaining efficiency. In this report five case study firms (aggregator firms) from Kenya, Morocco, Sri Lanka, Peru, and Cambodia working each with networks of artisan entrepreneurs ranging in numbers from 150 to 2,500, provide evidence that the artisan-based fashion and home accessories industry has the potential to be a large job-generator and a valuable supplier. Three out of five aggregator firms have one or more women founders and female participation among artisans is 80 percent many of which with little formal education and from marginalized groups. “Managing for Growth and Inclusion” analyzes on how each of the aggregator firms has worked on four levels of capabilities for growth and inclusion. The results show that the aggregator firms have achieved growth and even high growth by using capabilities at four levels: a) by blending traditional skills with modern, market-oriented design and selling in global markets, b) by fulfilling management functions in a participatory way and using socially and environmentally sustainable production processes, c) by offering financial solutions to the artisans, and d) by taking advantage of some favorable aspects of the business and digital environment and the innovation ecosystem. A 12-steps program could be implemented to spur growth for similar firms.
Weber, Johanna Michaela. 2018. Managing for Growth and Inclusion; Managing for Growth and Inclusion : Four Levels of Capabilities and a 12 Steps Program. © World Bank, Washington, DC. License: CC BY 3.0 IGO.
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