An Innovative Approach to Market Development in Crisis-Affected - PowerPoint PPT Presentation

An Innovative Approach to Market Development in Crisis-Affected Countries Venture Peacebuilding – From Idea to Industry January 23, 2018 | Washington, DC

About Us WHO : Established in 2004, Building Markets is a nonprofit organization registered in the US and Canada with its HQ office in NYC. WHAT : We contribute to job creation, economic growth, and stability in crisis-affected countries. HOW : By finding, building, and connecting small and medium-sized enterprises (SMEs) to supply chains and investment. WHERE : We have operated across 3 continents and more than a dozen countries including Afghanistan, Haiti, Liberia, Myanmar, Mozambique, Timor-Leste, and Turkey.

The Challenge and Opportunity How We Got Started • United Nations peacekeeping 100% What we Found? • missions budgets around $5b per 90% 80% of budgets • year 80% went straight out 70% • Seemed to be spending little in the of the economy 60% local economy to carry out projects 50% Although in 4 • and services cases, even that 40% low-level of • Missing a key opportunity to create 30% spending equaled jobs, peace, and self-sustaining 20% 5 to 8% of local growth 10% GDP 0% • Many believed that spending locally UNAMSIL UNMIL UNTAET UNTAC ONUCI MONUCMINUSTAH ONUB UNMIK local impact imports unspent allowances external impact would distort markets All that red? The external impact. A challenge but a huge opportunity! Good News? Lots of room for IMPROVEMENT! Particularly in sourcing goods and services from local businesses

Doing Business with local SMEs is a Win-Win Make up 90% of businesses in any private sector • No peace without jobs – and SMEs create them • Generating employment makes more and more citizens • stakeholders in the peace of their country Jobs create self-reliance and reduce dependency on, and the cost • of aid 76% of new jobs go to low-skilled workers - developing human • capital, and creating new market capacity Generate tax revenue for government • Formalizes markets, drawing in new investment • 86 % SMEs create up to of jobs globally

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Our Approach WE FIND : Where information and networks are scarce and unreliable, we bring visibility to local SMEs through rigorous research and business verification. WE BUILD : We address local business capacity gaps through comprehensive supplier development programs that provide SMEs with the resources they need to become competitive and expand to new markets. WE CONNECT : We facilitate access the local markets and SMEs through buyers and investors through matchmaking, tender distribution and events.

OUR IMPACT: Building Markets has supported a network of 23,000 local SMEs across more than 30 sectors Turkey Afghanistan 335 (Syrian) 8,302 Myanmar 3,078 Haiti Lebanon 3,964 25 Timor-Leste 3,155 Liberia 4,639 Mozambique 800 Through our services local SMEs have won $1.3bn in contracts and this has helped create 70,000 jobs .

In Action – Supply Chains Business : Heineken, Myanmar Problem : Wanted to localize supply chain around new brewery, but did not have local business data/relationships. Solution : Building Markets’ assisted with procurement process by identifying SMEs within certain sectors/aligned other specifications Impact : 3 companies went on to win contracts. Building Markets also assisted with their contractual compliance to help ensure success Local SME : Dayuu Enterprises, Liberia Problem : Local construction company unable to access concession opportunities due to closed vendor lists Solution : Building Markets facilitated a match between Dayuu and a large extractive, Arcelor Mittal Impact : Dayuu went on to win 8 contracts worth $70,000, purchased new assets and adopted new company practices

In Action – Investing Investment Capital Needs 70 44% 60 39% Location : Turkey 50 40 Problem : Now largest refugee host in the world, already high rates of unemployment prior to crisis, scarce resources. Urgent need to 30 16% grow economy and create jobs to prevent further destabilization. 20 10 Solution : Conducted groundbreaking assessment of Syrian refugee 0 led-businesses who are signification economic contributors – but Less than $100,000 $100,000 - $499,999 $500,000 or more were largely unnoticed. Borrowing Needs Impact: Found 6,000 SMEs started since war began with $300m+ 50 53% in Syrian capital. Creating 9 jobs on average. 47% 40 Identified investment needs, brought first 300 online through new 30 28% platform to give them visibility (160 data points on each SME). With 23% 20 local partners - connecting them to capital, supply chains, and 10 business support services. Expanding network of SMEs in Turkey and across region. www.refugees.buildingmarkets.org 0 Fixed Assets Marketing Business Operating Costs Infrastructure

Jennifer P . Holt, CEO CONNECT WITH US: Email: holt@buildingmarkets.org Website: buildingmarkets.org Twitter: @buildingmrkets @jenniferpholt THANK YOU!

Jennifer P . Holt | Chief Executive Officer | holt@buildingmarkets.org | www.buildingmarkets.org | @BuildingMrkets