Agribusiness Entrepreneurship

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Paulina Sims
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1 Agribusiness Entrepreneurship Anupa A Pant Private Sector Specialist apant@worldbank.org World Bank Group

essential to growth, job creation, and dynamic economies Growth Entrepreneurship

2 The Case for Innovation and Entrepreneurship Innovation and Entrepreneurship are key drivers of job creation, productivity growth and economic progress Entrepreneurship is essential to growth, job creation, and dynamic economies Growth Entrepreneurship Innovation Jobs Innovation is essential to achieving productivity, inclusion, and sustainability

Innovation and Entrepreneurship within the World Bank The I&E Unit of the Trade & Competitiveness Global Practice supports policies, strategies, financing, promotion of entrepreneurship and SME

3 Innovation and Entrepreneurship within the World Bank The I&E Unit of the Trade & Competitiveness Global Practice supports policies, strategies, financing, promotion of entrepreneurship and SME development, and testing of new solutions to unlock the growth potential of firms in client countries With a multi-pronged focus, the I&E unit supports entrepreneurship that benefits: the poor and marginalized, either as producers or consumers (social and women entrepreneurs), the environment (climate technology), economic diversity and value added (agribusiness), and technology to leap frog development (digital)

Implementation Modality WB Lending Operation Government Board of Directors Technical Assistance Autonomous Implementing Entity Implementing partner University Government representative Private sector

4 Implementation Modality WB Lending Operation Government Board of Directors Technical Assistance Autonomous Implementing Entity Implementing partner University Government representative Private sector representatives Advisory Committee Branch SMART AGRI SMART SMEsAgro AGRI processing SMEs SMEs Ministry of Agriculture Business association Financial intermediaries Supermarket Agriculture University Large firms

5 Program Location and Mission WHAT To accelerate the growth of a green and competitive agro-processing HOW By a new sustainable business incubation model

enterprises to the sector and to new markets affecting broader systemic change bottom-up Intended Impact Move up the global agricultural value chain,

5 5 Program Location and Mission WHAT To accelerate the growth of a green and competitive agro-processing HOW By a new sustainable business incubation model with holistic services for enabling growth-oriented innovative enterprises to grow sustainably in size, impact and market share catalyzing the entry of new enterprises to the sector and to new markets affecting broader systemic change bottom-up Intended Impact Move up the global agricultural value chain, capturing a larger share of value for local businesses, small-holder farmers, and tangential local service providers - and creating more jobs and reducing poverty

6 Target Segment 5 50 PEOPLE $30,000 $1,000,000 Ideation (Concept) Startup Growing Small Business Commercial Maturity Scale -Up Valley of Death

7 The agro-processing value chain Input suppliers Farmers Agroprocessing SMEs Buyers Retail, corporate, public Buy supplies Buy commodities Sell value added products Obtain finance Buy supplies Financiers Suppliers (packaging etc.)

8 Connecting SMEs to know-how, finance and markets

Success Story- Preparing AEC Client -Godavari International for private equity funding SHA Signed with Fund Manager for USD 500,000 equity May 2016 Selected as a client Introduced to Venture Fund May

9 Success Story- Preparing AEC Client -Godavari International for private equity funding SHA Signed with Fund Manager for USD 500,000 equity May 2016 Selected as a client Introduced to Venture Fund May Jan 2017 Interaction with suppliers, US market Connected to industry expert Mentoring for Equity funding Advise on share transfer February 2017 Helped to find bridge finance Advice on terms sheets/ pending prerequisites for equity

10 Critical Success Factors Leadership with business mindset, agribusiness experience and extensive networks Staff with experience in running a manufacturing business Lean staff complemented by strong partnerships and dense networks Strong selection process - identify high growth potential entrepreneurs Performance driven contractual relationship between incubatee and incubator Pro-active, tailored comprehensive assistance, with mentoring and coaching as core service offering Understand the value chain Public-private partnership structure Networking amongst enterprises Location, location, location where entrepreneurs naturally gravitate Strong capital structure

11 Thank you! Put your logo here Anupa A Pant apant@worldbank.org

Creating Sustainable Businesses in the Knowledge Economy

Creating Sustainable Businesses in the Knowledge Economy May, 2010 Knowledge Economy Forum, Germany www.infodev.org Creating Sustainable Businesses in the Knowledge Economy A public-private partnership,