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A producer can be included in businesses as provider or seller, as employee or buyer.
LINK methodology focuses on the producer being included as a seller.
Introduction Who does LINK help? Three types of actors: three perspectives
As previously mentioned, this guide is aimed at potential
facilitators who will apply LINK methodology. These
facilitators could be: representatives of an NGO that works
with producers, representatives of a group of producers, or
buyers.
“I’m looking for
new customers
for my
products.”
“I want to expand
my supply chain
to include small-
holder farmers.”
“My mission is to
support small-holder
farmers, through
service provision and
the coordination of
sales with buyers”
2
Introduction LINK’s conceptual framework Three essential dimensions for success
These actors ,for whom LINK will be useful, belong in turn to three dimensions which intersect and are essential for the
success of an inclusive business model: (1) Farmers with the ability, capacity and organisation necessary to maintain the
consistent supply required by a formal market; (2) Buyers who are willing to adapt their policies to favour small-scale
producers; and (3) an enabling Environment with favourable public policy and donors, where these types of business
relationships can flourish.
3
A toolkit to build inclusive commercial
relationships which link rural producers
with modern markets.
Introduction What is LINK? The Toolkit
4
From value chain to business model
Value chain mapping is a way of looking at a system from a global perspective. Zooming in on one link of the chain unveils the actors distinct business models. The business model canvas allows us to zoom in on a specific link in the chain, using a 360⁰ perspective.
Key tool #2 The Business Model Canvas
8
Adapted from: Osterwalder, A., Pigneur, Y., 2010, Business Model Generation
The business model canvas Key tool #2
The Business Model Canvas
9
Adapted from: Osterwalder, A., Pigneur, Y., 2010, Business Model Generation
The business model canvas Key tool #2
The Business Model Canvas
10
Connecting business models
Buyer or seller? A question of perspective
In a value chain, each actor is both seller and buyer to their neighbouring links. A solid value chain needs strongly connected links in order to face internal and external stress factors. Understanding how to strengthen these links is crucial to the quality of the business relationships.
How does each business model adapt to the needs of its
neighbouring links?
Key tool #2 The Business Model Canvas
12
What are NBM principles and how do they work?
To what extent is your business
relationship inclusive?
Key tool #3 The New Business Model principles
14
17
Example: Perception of inclusion between AGROAGUADAS & Alpina
0
2
4
6
8
10
Principio 1: ColaboraciónEntre Actores
Principio 2: VinculaciónEffectiva Al Mercado
Principio 3: GobernanzaTransparente y Consistente
Principio 4: AccesoEquitativo a Servicios
Principio 5: InovaciónInclusiva
Principio 6: Medición deResultados
OP: Agroaguadas AC: Alpina
Principle 1: Collaboration between actors
Principle 1: Collaboration between actors
Principle 2: Effective market linkages
Principle 2: Effective market linkages
Principle 3: Transparent governance
Principle 4: Equitable access to services
Principle 5: Inclusive innovation
Principle 6: Measurement of results
PO: CP:
Public Private Partnerships: Only for the well-off?
Evidence from the Productive Alliances Program in Colombia