Conventional Enterprise Development Approach Market Facilitation

STARTING POINT:

WHAT DO WE NEED

TO KNOW FIRST?

VISION

DRIVING FORCE

BEHIND PROJECT

WHO DO WE

ENGAGE WITH?

ROLE OF NGO

SOURCE OF

EXPERTISE

HOW IS

SUSTAINABILITY

ACHIEVED?

POTENTIAL TO

SCALE UP IMPACT

Very difficult to achieve sustainability. NGO tries to find

an exit strategy (a way to transfer its own role to someone

else)

NGO facilitator role is temporary. All permanent roles

and functions are played by market actors because they

have a legitimate “incentive”.

Vibrant market with lots of service providers delivering

range of affordable, relevant support to target

beneficiaries

NGO aiming to provide lots of services to lots of target

beneficiaries.

Support

(Directly giving assets, skills, information, making links)

Facilitation

(Creating an environment in which people interact more

easily: learn, share, negotiate, build trust)

NGO staff is meant to be the expert Market actors are the experts

Demand-driven:

Response to needs of customers in the market (PULL)

Supply-driven:

Desire to PUSH out NGO resources / innovations / funds

to poor people

Depends on market actors choosing to invest / replicate

successful business models. (Crowding in)

Increasing numbers of beneficiaries depends entirely on

more donor funding

Project starts by assessing needs of target beneficiaries Project starts by understanding structure of the entire

market system, roles & functions of all actors

Pays attention to all the different market actors in a

system. Intermediaries’ role is often key.

Focus only on the target beneficiaries. Intermediaries are

the “enemy” – to be avoided.