1

Acknowledgements

THE REPORT WRITING TEAM

This report was produced as a joint effort of a

dedicated team made up of members from

UNDP Brazil CO, SEBRAE, IICPSD and its

partners from academia. A core team from

Brasilia and Istanbul was involved at all stages

of the study.

Supervisors

Gülçin Salıngan

Deputy Director at UNDP IICPSD

Zeynep Gürhan-Canlı

Migros Professor of Marketing and Dean of the

College of Administrative Sciences and

Economics at Koç University

Valeria Barros

Senior Technical Analyst

SEBRAE

Luciana (Trindade de) Aguiar

Private Sector and Innovation Specialist

UNDP Brazil

Authors / Research Team

Dicle Yurdakul, Project Coordinator & Lead

Author

Assistant Professor of Marketing at Altınbas

University, Turkey

Olcay Tetik, Co-Author

Research Analyst UNDP IICPSD

Interns, UNDP IICPSD

Will Spurr

Cynthia Antypa

Razane Cherk

Anna Brunet

Sheila Casserly, UNV

BUSINESS ASSOCIATIONS

FECOMERCIO

FIAM (Amazonas)

FIEB (Bahia)

FIEMG (Minas Gerais)

FIEP (Paraná)

FIEPA (Pará),

FIEPE (Pernambuco)

FIESC (Santa Catarina)

FIERGS (Rio Grande do Sul)

FIESP (São Paulo)

Global Compact Brazil Network

REVIEWERS

Prof. Edgard Barki – FGV

Profa. Graziella Comini – USP

Maristela Baioni – PNUD Brazil

Cristiano Prado – PNUD Brazil

Carlo Pereira – Global Compact Brazil

Network

RESEARCH ASSISTANTS

Natalia Sant’Anna Torres

Marcelo Dias

Maria Paula Marques

OPERATIONAL ASSISTANCE

Serdil Cevheri Avcı

Service Support Associate, UNDP IICPSD

2

Foreword

The 2030 Agenda demands integrated,

systemic solutions and collective efforts of

public and private Private Sector is a vital actor,

together with governments and civil society in

advancing the Sustainable Development Goals

bringing onboard innovation, dynamism, and

expertise. In the average developing country,

the private sector accounts for 60 percent of

gross domestic product (GDP), 90 percent of

jobs and 80 percent of capital flows.1 Private sector stands to gain immeasurably by transforming

its business practices towards being inclusive, sustainable, and impact-driven.

The remit of the Istanbul International Centre for the Private Sector in Development (IICPSD) is to

work with both the private sector and governments to increase business contributions towards

achieving the Sustainable Development Goals (SDGs). In practice this means working to work with

investors and companies, of all sizes, so the SDGs are used as the main framework for private

sector strategies and operations so that all business outputs are contributing to the SDGs.

UNDP/IICPSD aims also to support governments to establish enabling policy and regulatory

environments while facilitating multi-stakeholder partnerships.

As a commercially viable and scalable practice, inclusive business is one of the thematic working

areas of IICPSD. Not only do inclusive business models drive progress towards SDG 8 – decent

work and inclusive economic growth – they have the potential to catalyse progress across the board,

whether in gender empowerment, zero hunger, or reduced inequalities.

As part of IICPSD’s work, Business+ reports were launched to provide an improved depth of

understanding about the status of inclusive business around the world. We believe that this can

complement the work of legislators and market actors – both globally and locally - in fostering an

enabling environment for the inception, implementation, and integration of inclusive business

practices. Thus far, the Business+ series has covered Turkey (2015) and the Philippines (2017),

wherein it provided suggestions to pursue a network-based approach which incentives and supports

innovations in inclusive business. In both countries, several inclusive firms already existed, yet low

awareness of the inclusive business, limited support and collaboration among stakeholders, has

precluded coordinated efforts to structure and foster a vibrant inclusive business ecosystem, despite

palpable enthusiasm from all stakeholders to entrench inclusive business into effective development

strategies.

Therefore, I am delighted to together with UNDP Brazil and SEBRAE we are now launching the

third Business+ report in Brazil. Throughout my career, I have paid close attention to the

developmental challenges in Brazil. The progress Brazil has made in lifting 29 million people out of

poverty in a short space of time has been breath-taking. I believe that private sector that generates

decent-paying income opportunities, creating new markets for the untapped, and enhancing

business models through innovation will contribute to a more inclusive and sustainable business

environment, which can be achieved with a nation-wide awareness raising programme and an

effective collaboration among actors to enhance the capacity of inclusive business models in Brazil.

Marcos Neto, Director, UNDP Finance Sector Hub

3

UNDP – Country Office in Brazil

Inclusive and social impact businesses have been increasingly relevant within the context of

Agenda 2030 and to the localization of the Sustainable Development Goals (ODS) in Brazil, a

universal agenda, that among its many challenges, seeks to eradicate extreme poverty and hunger

in Brazil and in the world. At the same time, this is an agenda of opportunities. It is estimated that

approximately 3 to 4 trillion dollars per year will be directed towards investment in developing

countries.

In the last decades, Brazil managed to reduce extreme poverty by 75%. In addition, the middle

class increased to 29 million people, which contributed significantly to the achievement of the

poverty reduction target for the Millennium Development Goals.

However, according to UNDP's most recent Regional Human Development Report on

Multidimensional Progress, there are 224 million Latin Americans at risk of returning to poverty: 35%

of the region's population. In Brazil, 3.6 million people are already in this situation.

The biggest challenge now is working to achieve and reach new levels of development, prioritizing

the inclusion of more vulnerable groups. After all, persistent inequalities remain, above all, in the

participation of black women, ethnic and juvenile minorities in the economic system and in the

spheres of citizenship. These gaps need to be removed from the country and the productive sector

in order to move forward.

UNDP adopts the articulation and expansion of innovative partnerships with key national and

subnational organizations, intensifying its involvement with the government, as well as public and

private companies, working daily to build a fairer and more equitable country.

In this sense, it is essential to adopt measures that lead to new business models capable of

generating scalable solutions to respond to concrete problems in essential services, as well as

business strategies that include the lower income population as partners in their value chains.

In addition, the private sector, through its capacity to promote innovation, the construction of

productive chains and the generation of value, can proactively contribute to the construction of a

more inclusive society in a dynamic, complex and multifaceted country like Brazil.

In this aspect, it is vital to mention the important role of small businesses in their capacity to

innovate, generate employment and contribute to 27% of GDP in Brazil.

Economic growth is an important driver of development. However, it is not enough to grow. After all,

an economy must grow with a shared vision of prosperity, inclusiveness, and respect for the

environment. UNDP believes that this is the path that may lead the country to grow in a more

harmonious way. This is also the aim of this publication as it sets standards for the companies to

understand and plan how they relate with low income population and entrepreneurs in their

business models.

Together with the micro and small enterprises, the main route of articulation has been through the

implementation of actions with SEBRAE, within the scope of the Iniciativa Incluir, to sensitize and

serve 2,000 entrepreneurs, as well as to support inclusive and social impact business in the country,

to accelerate the implementation of ODS.

Jose Eguren, Resident Representative a.i., UNDP, Brazil

4

SEBRAE

SEBRAE and UNDP have been partners since 2016 in the implementation of the Project INCLUIR -

Strengthening Inclusive and Social Business in Brazil. Together, we have reached excellent results.

SEBRAE has included in its strategic framework the commitment to support small businesses in

alignment with SDG 17, as stated in the Strategic Guidelines for Attending Social Impact BusinessI.

These innovative business models distinguish themselves by some fundamental aspects:

generating social and/or environmental impact through their main business activity (i.e., when

sustainability is inherent to its core business, and it is not only an idea or initiative); developing

innovative solutions which are aligned with a digital or traditional business model (i.e., when

innovative solutions are in its distribution model, product and services or pricing system); having

profitable business models that offer scalable solutions (i.e., when entrepreneurs and collaborators

are committed to improving the quality of life of low-income people, presenting a structured

economic model that guarantees profitability from the commercialization of products or services);

and, finally, adopting an innovative and horizontal management model.

The digital paradigm has brought to companies the need to accelerate the process of developing

and repositioning small businesses in different markets. In addition to B2B (business to business),

B2C (business to customer) and B2G (business to government), business have also to consider

M2M (Machine to Machine) in their models, shortening distances between the value chain links. An

"end-to-end" link, that connects productive value chains, could shorten the distance between the

different convergence points in their value chains and is vital for small businesses’ digital

acceleration.

Certainly, organizations and their activities offer different contents according to their products and

services, generating intelligence faster and in a more horizontal way. With digital transformation,

understanding the internal value chain of an organization demands attention and knowledge about

connectivity, infrastructure, marketing, data standardization, working processes, risk and people

management.

In this transformation from traditional to digital business models, it is essential to combine the social,

intellectual and human capital generated by small businesses with the local assets existing in the

territories where they are positioned. As a way to integrate stakeholders and find common solutions

created by a collective intelligence for sustainable development.

In this context, the intelligence produced in the Business+ Brazil report will contribute to disseminate

the awareness about the gaps and opportunities on how businesses can achieve social and

environmental impact in a more effective way. Moreover, the study enhances the understanding on

how companies can solve social problems in large scale through their value chains.

Have a good reading.

Vinicius Lages, Technical Director, SEBRAE

I Available at: www.sebrae.com.br

5

Table of Content

List of Abbreviations

List of Key Figures

1.0 Executive summary

2.0 Context

2.1 The Brazilian Context

2.2 SDG Progress in Brazil

2.3 Why the Private Sector Matters for Sustainable Development

3.0 Introduction

3.1 Inclusive Business

3.2 An Inclusive Business Ecosystem

3.3 Business+ Reports’ findings

3.4 Obstacles to IB

3.5 Why this study?

3.6 The Purpose of this study

3.7 Who are the poor in today’s Brazil?

4.0 Methodology

4.1 Operationalization of key constructs (level of inclusiveness, business model

innovation, collaborations, contextual factors)

4.2 Stages of the research done in Brazil (in-depth interviews, survey, profile of the

participants)

5.0 Findings

5.1 Findings Summary

5.2 Participants

5.3 Inclusive Business Findings

5.4 SDG Findings

6.0 Policy Implications: What’s next?

Appendix

End notes

6

Acronym List:

BoP – Base of the Pyramid – Population living off <$8/day (2011 PPP)

BRIC - Brazil, Russia, India and China

CEPAL – United Nations Economic Commission for Latin America and the

Caribbean

CEO – Chief Executive Officer

ESG – Environmental and Social Governance

ECLAC - Economic Commission for Latin America and the Caribbean

G20 – Group of 20 – International Organisation.

GDP – Gross Domestic Product

GNI – Gross National Income

HDI – Human Development Index

IB – Inclusive Business

IICSPD – Istanbul International Center for the Private Sector in Development –

UNDP Specialist Hub for the Role of the Private Sector in Development.

MDGs – Millennium Development Goals

MERCOSUR/L – Southern Common Market – Latin American Trading Bloc

MSME – Micro-, Small-, and Medium-sized Enterprises

OECD – Organisation for Economic Collaboration and Development

PPA – Multi-Year Plan – Brazilian Policy Tool

PPP – Purchasing Power Parity

SEBRAE – Serviço Brasileiro de Apoio às Micro e Pequenas Empresas -

Brazilian Service of Support for Micro and Small Enterprises

SDGs – Sustainable Development Goals

UNDP – United Nations Development Programme

WBCSD – World Business Council for Sustainable Development

7

List of Key Figures

Figure 1 Brazil Fact File Figure 2 SDG Internalisation Cycle Figure 3 IB Engagement Entry Points Figure 4 Programa Vivenda Case Study Figure 5 G20 IB Ecosystem Figure 6 Turkey and Philippines Business+ Comparisons Figure 7 Respondents by Sector Figure 8 Approximate Number of Employees Figure 9 Company Size by Category Figure 10 Do the Respondents Work Outside Brazil Figure 11 Employment Format versus Organization Size Figure 12 Employment Type by Sector

Figure 13 Organisational Format in which Low Income People Fit in the Business Figure 14 Key Learnings Figure 15 Prior Knowledge of IB Figure 16 Interest in Learning About IB Figure 17 Emphasis of the poor in the Business Strategy controlled for Organisation Size Figure 18 Interest in UNDP IB Workshops and Seminars Figure 19 Management’s Intention to Engage with BoP in the Next 5 years. Figure 20 Inclusivity by Entry Point Figure 21 Prioritisation of Inclusivity Entry Point Figure 22 Top 5 SDGs by Present Impact Figure 23 Top 5 SDGs by Business Opportunity Figure 24 SDG Prioritisation by Organisational Structure Figure 25 Actions to be taken by the business towards achieving the SDGs

8

1.0 Executive Summary

The key findings of this report follow as such; awareness of inclusive business amongst respondent

business is low, their appetite to learn more – especially through UNDP workshops – is high.

Moreover, the survey and extensive literature review indicate that the ease of doing business is low

in Brazil, informality is high, and capacity is limited. Notwithstanding, inclusive business has the

potential to considerably enhance the resilience of developmental gains in Brazil, as well as lifting

further people out of poverty.

The United Nations Sustainable Development Goals (SDGs) set targets for overcoming global

economic, social, and environmental sustainability challenges by 2030. Governments remain a key

player in driving sustainability, but private sector solutions are also necessary to bring onboard the

dynamism, innovation and expertise required to meet the ambitious 2030 Agenda.

One of the most effective ways businesses can contribute to the SDGs is through Inclusive Business.

The G20 (2015) defined Inclusive Business as ‘a private sector approach to providing goods,

services, and livelihoods on a commercially viable basis, either at scale or scalable, to people living

at the base of the economic pyramid (BOP) making them part of the value chain of companies’ core

business as suppliers, distributors, retailers, or customers.’ Inclusive Business models provide a

sound basis for building a resilient economy that gives due importance to human and economic

development while providing an alternative model for businesses to be profitable and responsible.

Given the potential of Inclusive Business in delivering market-based solutions to the SDGs, the

United Nations Development Programme (UNDP) decided to accelerate the implementation of

Inclusive Business practices by identifying capacity gaps and barriers to the adoption of relevant

models and the revelation of any drivers that would enable businesses to better promote and

practice Inclusive Business models. UNDP thus developed Business+ research study as a tool to

understand the inclusivity in the private sector in different countries and guide development actors

toward a more inclusive economy.

Following successful surveys in Turkey (2015) and The Philippines (2017), in close collaboration with

UNDP Brazil, esteemed academics, business associations, IICPSD initiated the Business+ survey in

Brazil in late 2017. Brazil provides a particularly interesting context for Inclusive Business; it is a

country that has made huge developmental leaps over the past few decades and is central to the

industrial drive of the Latin American continent. Nonetheless, the past few years have witnessed

unfortunate backsliding in Brazil’s developmental progress, and the resilience of the nation’s

growth has been exigently tested. 78.5 million Brazilians fall under C.K. Prahalad’s2 definition of the

base of the economic pyramid (BoP) insofar as they live off less than $8 (2011 PPP) per day. As

inclusive business is to be understood as creating wealth with the BoP, then inclusive business

contains the potential to have a hugely transformative effect on Brazil.

As such, the priority for stakeholders henceforth is to unlock the potential of inclusive business in

Brazil; the research herein suggests that the key identifiable barriers to this are limited knowledge

and information, awareness, and institutional capacity.

9

Context

10

2.0 Context

The 21st century was proclaimed to be ‘Latin America’s century’3. The opening decade witnessed a

rising tide of continent-wide democratic consolidation4, booming growth, declining inequality5II and

poverty6, and significant advancements towards achieving development targets7III. The continent is

home for 650 million people, as well as major biodiversity hubs and resource reserves and remains

pivotal for the realisation of the Sustainable Development Goals (SDGs).

With the recent economic downturn and its impact, the region faces pressing challenges. The

absolute poverty rates increased from 8.2% in 2014 to 10% in 2016, and the total size of low-

income population increased from 28.5% to 30.7% over the same period.8 25 to 30 million people in

the region risk falling back into income poverty, which amounts to more than a third of the

population that quit poverty since 2003.9 And the large vulnerable class that represents around

40% of the population in 2015, increased from 34% in 2000.10

Despite the challenges, the region is undergoing a subdued recovery after a decline in economic

activity. The Economic Commission for Latin America and the Caribbean (ECLAC) estimate 1.7%

region-wide growth for 2019. 11 Also there is a positive momentum towards sustainable

development in the region with growing awareness and enthusiasm about sustainable

development among businesses. 70% of Latin American CEOs believe that a ‘sustainability strategy

is necessary for a competitive company’12 and the World Business Council for Sustainable

Development (WBCSD) claims that sustainable development could unlock $1.2 trillion in annual

additional value for Latin America by 203013.

With one third of the region’s population, and around 40% of its GDP14, the economic and political

fates of Brazil and Latin America are intricately interwoven15IV. Despite a recession between 2014-

2017, Brazil remains the strongest economic and political force in the region. Investors remain

confident in Brazil’s prosperous trajectory, with Brazil being currently ranked 8th for global

investment16. It holds pivotal seats in several of Latin America’s diplomatic and economic

multilateral organisations, such as the Lima Group, MERCOSUR/L, and CEPAL. Additional, Brazil has

the largest capital stock and vote share of any Latin American country in the Inter-American

Development Bank17. Moreover, with Brazil’s macro-economic outlook improving, and business

confidence returning to pre-crisis levels18, the time is right to mobilise resources towards

harmonising economic growth and inclusive, sustainable, business; Brazil will play a pivotal role in

Latin America’s developmental future.

II As per the GINI coefficient, from 0.538 in 2002, to 0.467 in 2016. III As per HDI. From a regional average of 0.686 in 2000, to 0.758 in 2017. IV Brazil’s 2017 Human Development Index score is 0.759 which is almost identical to the regional average for 2017, 0.758.

11

Figure 1: Brazil Factfile

2.1 The Brazilian Context

After experiencing decades of structural inequalities along axes of class, race, gender, and

geography, Brazil stepped into the 21st century abound with promise and progress. Between 2003

and 2013, Brazil experienced a period of economic and social progress when more than 29 million

people left poverty and inequality declined significantly. The GINI coefficient dropped 6.6% (from

58.1 to 51.5) during that time while the income level of the poorest 40% of the population

increased by an average of 7.1%.19

Since 2015, however, the pace of poverty and inequality reduction seems to have stagnated. The

country's growth rate has been slowing since the beginning of the decade, from an annual growth

rate of 4.5% (between 2006 and 2010) to 2.1% (between 2011 and 2014).20 There was a significant

contraction in economic activity in 2015 and 2016, with the GDP dropping by 3.6% and 3.4%

(respectively).21Poor economic performance threatens to undermine the substantial developmental

progress made over the past few decades. The recession22has slowed the consolidation of

development gains. A 2018 report released by the Instituto Brasileiro do Geografia e Estatistica

noted that between 2016 and 2017, poverty levels increased from 25.7% to 26.5%, driving

approximately 4 million people back into poverty, and a further 1.8 million have fallen into absolute

poverty23.

Growth has been primarily export-driven – with trade comprising between 25-30% of GNI in the

21st century24 - and Brazilian per-capita investment into research and development remains less

than 10% of other exporting giants such as South Korea, Germany and Japan 25 . The

12

underinvestment in skills development, industry and innovation mean that breaking out of a

primary-product dependent growth model, contingent as it is on the whims of global markets, will

be remarkably difficult26. Additionally, significant capacity gaps still remain: infrastructure remains

sparse in Brazil’s expansive rural Northern states; businesses still face bureaucratic challenges, high

taxes27V, and a paucity of incentives; finally, structural inequalities still fracture society, creating a

fragmented base upon which to build further progress towards achieving the SDGs28. The Brazil

economy remains obstructed from global markets, and consistently scores amongst the bottom

10% of nations for ease of doing business29.

In the context of global anthropogenic ecosystem degradation, mass extinction, and climate change,

Brazil remains a stronghold of ecological resistance. 60% of the Amazon rainforest is found within

Brazil’s borders, Brazil is home to more species of animals, birds, fish and plants than any country in

the world. Unfortunately, this great ecological reserve is often at risk due to the demands of

industry. For example, of the 1.5-3.5 million hectares of forest lost each year in Brazil; cattle

ranching, farming, land speculation, internal irregular migration, and (il)legal mining and logging,

are cited as the leading causes.

Despite these setbacks, economic stability looks to be returning to Brazil. The unemployment rate

fell to 11.6%VI in January 201930 and the inflation rate has decreased to 3.45%31 - less than the 4.5%

central bank target32. Whilst 2017 witnessed Brazil’s tentative climb back to a positive GDP growth

– 1% - growth in 2018 appears to have stagnated at 0.2%33. The slowing down of macroeconomic

progress has required the Brazilian government to adopt a new inclusive growth strategy that is no

longer reliant on strong economic growth to deliver developmental results34. The new inclusive

growth strategy involves taking steps to alleviate asymmetries of information between commerce,

government, and citizens. The Brazilian Service of Support for Micro and Small Enterprises

(SEBRAE)35VII, a private non-profit organization, has been one of the key actors advancing this

strategy. SEBRAE, established in 1972, is part of the S SystemVIII – a term stablished by the Brazilian

Constitution that defines a set of corporate entities focused on professional training, social

assistance, consulting, research and technical assistance, and supports the development and

growth of small businesses while fostering the competitiveness and sustainability of micro- and

small-scale ventures across the country.

There have also been other efforts to reform the Brazilian economic-governmental matrix via the

reduction of informality, such as law of the ‘individual entrepreneur’36, and the streamlining of

investment, as with the creation of a strategy to support inclusive and social incubators and

VI However, this figure conceals record levels of informality, and 0.4% in the following month. See Endnote 34. VII SEBRAE and her seven sister organisations (which together form the ‘S’ system of industrial information and education organisations) make manifest efforts to build bridges between governance and industry. VIII The following are part of the S system: National Service of Industrial Learning (SENAI); Social Service of Commerce (SESC); Social Service Industry (SESI); and National Service of Learning of the Commerce (SENAC). There are also the following: National Rural Apprenticeship Service (SENAR); National Cooperativism Learning Service (SESCOOP); and Social Transportation Service (SENAT).

13

accelerators. As such, within the Latin American – indeed, global – context, the economic situation

in Brazil continues to offer reasons for cautious optimism.

2.2 SDG Progress in Brazil

Achieving and frequently surpassing the targets of the Millennium Development Goals (MDGs),

Brazil acted as a key interlocutor and reference point for the negotiation and establishment of the

SDGs 37 and continued its integral position in the process through the internalisation and

dissemination of SDGs into its domestic policy38IX. Indeed, the post-2015 SDG agenda was launched

in Brazil at the United Nations Conference on Sustainable Development Rio+20, which took place in

Rio de Janeiro, Brazil on 20-22nd June 2012.

The Brazilian government keenly integrated the SDGs into its domestic agenda with the

establishment of National Commission for the Sustainable Development Goals (CNODS) in 2016. 39X

The 86% correspondence between the targets of the SDGs and the targets of the national multi-

year plan (Plan Plurianual, PPA)40 proved its enthusiasm. The crossover was most notable in the

areas of hunger alleviation and healthcare improvements41. Real-time quantitative checks on

Brazilian SDG progress – indicator-by-indicator – is publicly available through the Instituto Brasileiro

do Geografia e Estatistica online SDG platform42.

Another significant step was the localization of the SDGs. Brazil was one of the first countries to

adapt the Human Development Index (HDI) to the municipal level, in 1998. The Government also

developed a guide for municipalities to incorporate the SDG agenda into their local planning43.

However, it is important to note that the implementation of the SDGs will depend on each

territory´s distinct development challenges, the engagement of local actors, and the capacities of

state and municipal government to deliver. Due to this reason the 2030 Agenda is still a major

challenge, from awareness raising to implementation on the ground.

Moreover, several platforms and information hubs were created to inform and foster dialogue and

debate between civilians, civil society, business and government agencies 44 . For example,

participa.br offers a social media driven platform for citizens and civil society organisations to

deliberate, whereas the Municipal Vulnerability Atlas provides a detailed and open-access needs-

map of social vulnerability in 5,565 municipalities throughout Brazil45. The final tenet of the

National Commissions action plan is to assist and monitor the progress of the SDG-internalisation

process, including the preparation of periodic reports46. The steps it takes to enact this can be

condensed as such:

14

Figure 2: SDG Internalisation Cycle

2.3 Why the Private Sector Matters for Sustainable Development

47

Sustainable development is a multifaceted process and requires cooperation from all sectors:

government, civil society, academia and the private sector. Given its potential, the private sector

stands as a critical partner in achieving the Global Goals by 2030. In the average developing

15

country, the private sector accounts for 60 percent of gross domestic product (GDP), 90 percent of

jobs and 80 percent of capital flows.48

Transition to sustainable and SDG-aligned business models offer economic opportunity to

companies. As highlighted by the Business Commission on Sustainable Development, up to $12

trillion in new economic opportunities could be generated through investments in areas such as

agriculture, cities, energy and health and 380 million jobs created (90% in developing countries) by

2030. Businesses are increasingly seizing the SDGs as a market opportunity and reconfiguring their

business models accordingly.49 For instance, 87% of CEOs perceive SDGs as a chance to reconsider

approaches to sustainability, and almost half say that businesses are the most important actors in

delivering the goals.50

UNDP in partnership with governments, civil society and businesses seeks to enhance the private

sector’s role as a vital actor in advancing the SDGs through the adoption of the SDGs as the main

framework for private sector strategies and operations so that all business outputs are contributing

to the SDGs. UNDP aims to support governments to establish enabling policy and regulatory

environments while facilitating multi-stakeholder partnerships.

The private sector plays a key role in delivering sustainable solutions at a local level, creating

employment opportunities, leading innovation, developing market-based solutions by mobilizing

private finance and promoting viable investments, assisting the cities in keeping up with

technological and cultural transformations, and facilitating the transformation towards

environmentally-conscious operations.51 A successful alignment of business objectives with the

SDGs can simultaneously achieve the Global Goals and generate revenue, as exemplified by the

following figures: Individuals with a daily income between US $2.97 and US $8.44 invest a total of

US $710 billion every year in infrastructure, and consequently, a provision of infrastructure

products and services presents a unique opportunity for the private sector (PS).52 Likewise, the

SDGs open up US $12 trillion worth of market opportunities in four economic systems: food and

agriculture, cities, energy and materials, and health and well-being.53 The total economic value that

can be unlocked in the Latin America and the Caribbean region is estimated at US $1.2 trillion, and

that figure would increase further were one to factor in the evaded-costs of averting natural and

social catastrophes that would amount through a ‘business as usual’ approach.54 These numbers

indicate a proliferation of the understanding that businesses constitute a vital partner in achieving

SDGs55

16

Private Sector plays a crucial role in Brazil’s development. There are 12.9 million companies in Brazil

employing approximately 40 million people (33 million are workers and 7 million are partners or

business owners). Small and medium enterprises (SME) deserve attention as they account for 85%

of this universe, responding for 52% of formal job positions. 56 Brazil has a higher rate than other BRIC

countries in the creation of new businesses.13 However, reducing business discontinuation rate is still a

challenge.14 Business environment can be strengthened by stimulating incentives, investments, access

to information and implementation support for business models capable of serving the low-income

segments. 57 Moreover, global growth in the market for sustainable investment has been

recapitulated in Brazil, with almost $3bn USD having been procured for green bonds since 201558.

The 2015 UNDP-led Inclusive Markets in Brazil59 report offers extensive insight into the early

developments regarding the corporate-SDG alignment in Brazil. It tracks exciting early movers, such

as the adaptive learning platform Geekie, which makes use of machine learning and online

connectivity to provide tailored education, research and recommendations for all Brazilians. The

firm has global aims and works to empower BoP citizens to improve their chances and build their

personal capacity. Additionally, fintech firms are booming in Brazil, a country with high bank

concentration and low rates of formal financial transactions among low-income population.

Investments in this unattended market may reconfigure the financial services industry, benefiting

small and medium-sized enterprises (SMEs) and reducing the financing gap for the productive

sector. Given the size of this market, the number of potentially benefited population and the high

possibility of scale, fintech firms are seen as strategic by social development institutions. As such,

SmartMEI – a digital account and mobile application for business finance management – and Firgun

– a platform for collective financing – are two fintech firms selected as finalists of the Incluir 2017

call for start-ups that have identified business opportunities to serve low-income entrepreneurs

and clients in Brazil.

On a national scale, civil non-profit organisations, such as the Brazilian Business Council for

Sustainable Development, work to raise awareness and approval of sustainable business strategies

whilst also coordinating the energy of the private sector towards the realisation of the SDGs.

17

Introduction

18

3.0 Introduction:

3.1 Inclusive Business

According to the G20 Inclusive Business Framework, the inclusive businesses are defined

as:

60

IB models have the capacity to improve the livelihoods of BoP populations, serving as a conduit to

affordable products and services, and increasing productivity – activities that can yield inclusive

growth and sustainable development61. In other words, IB models stand as potent steps towards

achieving the SDGs.

The BoP is understood to be the 4-4.5 billion people – with a collective buying power of

$5trn/year62 – who earn less than $8 per day (PPP, 2005). In contrast with Corporate Social

Responsibility (CSR), inclusive business does not depend on the munificence of a business, but

instead, creates value with the BOP that is essential part of inclusive businesses. Inclusive business

practices are therefore commercially viable and seek to align corporate self-interest with the

interests of the BOP. Businesses can integrate the BOP into their value chain in five key manners:

19

Figure 4: IB Actors63

3.2 Inclusive Business Ecosystem

‘Business Ecosystems’ refer to the network of relations, synergies, and co-dependencies present

within an environment of businesses. Businesses within an ecosystem require one another to thrive,

and actors within the ecosystem influence each other and co-create norms of practice.

• Skills Development, outreach, and education programmes for BoP employees.

20

As such, inclusive businesses operate more effectively within an ecosystem of other inclusive

businesses, and within a regulatory and commercial framework that supports the particularities of

inclusive businesses. Hence, this report provides several policy recommendations and guidelines for

governments, the media, independent organisations and other companies to create the conditions

for their success. The G20 Inclusive Business Framework defined the actors of IB Ecosystem as:

Figure 5: An IB Ecosystem. Source: G20 Inclusive

Business Framework

The 2015 Inclusive Markets in Brazil64 report effectively outlines the various actors within the

emerging Brazilian IB ecosystem. It examines the ecosystem from the lenses of:

a) Information

b) Implementation support

c) Investment

d) Incentives

Whilst these perspectives are often interconnected and interdependent, key actors, such as

research institutions, national organisations like SEBRAE, IBGE, NGOs, firms, and international

development organisations all act as information hubs in the IB ecosystems. However, inclusive

business (IB) actors still often experience difficultly in receiving, interpreting, and functionalising

market information.

3.3 Business+ Reports’ findings

The UNDP IICPSD has already compiled two reports analysing the state of inclusive business

practices in two focus countries; Turkey (2015) and the Philippines (2017). These cases followed a

very similar methodology to the Brazil report, yet the questions were adapted to the local context.

There were several commonalities between the two cases, however, there were differences too.

21

Figure 6: Similarities and Differences between Business+ findings in Turkey and the Philippines.

Business+ reports are publicly available through the UNDP website65.

3.4 Obstacles to Inclusive Business

Although the strong potential of IB models in fostering inclusive growth is recognized, there exist

substantial difficulties in the implementation of IB models and activities. The barriers can roughly

be categorized as external (market) and internal (organizational) barriers. The former category

includes obstacles such as rules and regulations, financial resources, information and capacity.66

The latter group refers to issues that relate to the particular context of the companies such as size

and origin; i.e. a local SME in the northern hemisphere or a large corporation from the southern

hemisphere.67

Whilst there have been stirrings in the financial world towards SDG alignment - global multilateral

banks have allocated US $15 billion for IB approaches and private investors have garnered an

additional US $6 billion for businesses with explicit social goals68 – there remain significant

obstacles towards securing appropriate financing for IB enterprises. Just as investment is a key

component for a fully functioning IB ecosystem, difficulty in securing appropriate investment is an

obstacle to IB.

Limited or lack of information is another obstacle for IBs to develop. The first Business+ Study

conducted in Turkey showed that although the opinion of private sector’s role in development is

22

moderate, “companies in Turkey have very low levels of engagement in IB models and activities”69.

Likewise, this study’s predecessor, Business+ Philippines, which engaged more than 200 businesses,

revealed that the current levels of awareness and engagement in IB practices is significantly low.70

Against this backdrop, for IB models and activities to be sustainable and commercially successful,

three pillars have been identified: business model (inclusivity as a core business strategy),

partnerships (collaboration with stakeholders), and innovation.71

Studies in Turkey and the Philippines suggest that addressing these issues requires building

awareness and interest, capacity building, building a stronger ecosystem, operating in a more

favourable regulatory environment, and implementing IB-supportive policies.72

3.5 The purpose of this study

The purpose of Business+ studies is to quantitatively analyse the inclusiveness of the private

sector’s business operations and to understand the level of companies’ awareness, knowledge and

engagement of IB models. The tool is designed to generate meaningful results to be used by policy

makers, business leaders and development practitioners that are specific, measurable, and realistic

towards creating a conducive IB ecosystem.

As such, in the countries studied thus far - Turkey and the Philippines - awareness of inclusive

business practices is understandably low, even where companies have inclusive business models

without explicitly referring to themselves as ‘inclusive’. Moreover, the contextual and global

nuances of inclusive business practices mean that more work is required to enrich and challenge

the understanding of inclusive business. As the wealth of data improves, more detailed guidelines

can be established to help assist both policy makers and market actors navigate the possibilities of

inclusive business, especially to incentivise and assist implementation of IB practices.

The pilot Business+ survey, undertaken in Turkey, proposed recommendations for improvements in

three main fields: awareness-raising, promotion of innovative IB models and practices, and multi-

stakeholder collaboration. The steps taken include: Informative website created by the Science,

Industry and Technology Ministry to engage private sector actors73, IB workshop series74 created by

the Turkish Informatics Association, undergraduate courses on IB offered by Koc University75.

Following the report, two IB projects have been initiated: Turk Telekom’s Life is Simple with Internet

project, and Koton’s Handmade CollectionXI. The former initiative targets underprivileged groups in

less economically-developed cities in Turkey, and provides them with basic skills for internet usage,

bringing almost 30,000 people online within two years after its launch. The latter project, by a

textile company, relocated embroidery work to women’s groups in four cities in Eastern Turkey.

XI For more information on these two initiatives, see: https://www.turktelekom.com.tr/en/AboutUs/SocialResponsibility/Pages/turk-telekom-group-social-responsibility-projects.aspx and https://www.businesscalltoaction.org/member/koton respectively.

23

The Filipino government has taken several positive steps over recent years to create a regulatory

environment that is conducive to a healthy IB ecosystem76. For example, the Philippines is a

permanent invitee to the G20 IB dialogue as of 2015. In addition, since the Business+ Philippines

report, the Filipino Senate passed the Sagip Saka bill, which provides tax incentives for firms who

purchase directly from agricultural suppliers, rather than through middle-men. Given that primary

producers are often BoP citizens, this fits the IB requirement of incorporating the BoP into a

corporate value chain as a supplier. The UNDP Country Office in the Philippines continues to work

on improving awareness of IB, whilst also improving IB models and seeking to build capacity. To list

a few concrete initiatives; the office has partnered with two business associations - the Board of

Investments and PH Business for Social Progress – to host an Inclusive Business Leaders Conference.

This provided an opportunity for active participants in the IB ecosystem to showcase, share, and

develop their knowledge. Moreover, the Board of Investments is currently completing the first full

year of its 2017-2019 Investment Priorities Plan, wherein there are provisions for an IB incentive

scheme aiming to stimulate IB activity. Finally, the Country office is working to strengthen strategic

partnerships with both governmental and private agencies to harmonise and co-develop their IB

strategies. In conjunction, these efforts seek to break down the incentive and capacity barriers that

were highlighted as being obstacles to a healthy IB ecosystem in the Philippines.

The internal developmental progress that Brazil has already made render it a fascinating case study

for assessing the present state of inclusive business. Two decades of conscious effort towards

advancing development goals have consolidated a widespread cognizance of both the terminology

and practices of development. It is in this spirit that the world’s 9th largest economy by GDP77 can

help align private sector strategies with the SDGs, and potentially act as a global leader in inclusive

business practices.

In 2015, UNDP released a comprehensive report entitled Inclusive Markets in Brazil outlining the

status, challenges and opportunities of IB in Brazil78. This report presented the key actors,

institutions and theory associated with fostering Brazil’s immature IB ecosystem and provided

recommendations. For example, attempts to overcome infrastructural capacity gaps and onerous

bureaucratic systems were cited as integral for the advancement of IB enterprises.

This Business+ Brazil report aims to analyse the state of Inclusive Business in Brazil three years on

from the comprehensive Inclusive Markets in Brazil report. Furthermore, this report generates

specific recommendations which could be useful for policy makers, business leaders and

development practitioners towards advancing the inclusive business practices and the role of the

private sector in development.

3.6 Who are the poor in today’s Brazil?

Absolute poverty decreased from 11.1% to 2.3% of the national population between 2002-2014 79,

however, the aforementioned shifts in national fortunes – coupled with structural reforms to lower

24

welfare spending80 - have seen a reversal in the trend, with a further 1.1% of Brazilians dragged

back into extreme poverty81 by 2015.

Despite remarkable improvements in nationwide living standards over the past two decades,

relative poverty and its attendant correlates remain prevalent among disadvantaged populations.

Race and location sharply influence one’s likelihood of numbering amongst the extreme poor.

‘White’ Brazilians earn, on average, twice as much as ‘black’ Brazilians82. Whilst significant steps

have been taken over the past few decades to narrow racial gaps in income, employment, schooling

and health83, significant disparities remain. 52.9% of Brazilians self-identify as black or brown-

skinned, over 70% of Brazilians living in extreme poverty come under this same category84.With a

high degree of intersectionality, we can also analyse regional disparities in wealth. Wealth is

concentrated around Brazil’s southern coastal economic hubs – namely São Paolo and Rio de

Janeiro. By contrast, whereas 27.7% of the population live in the North-East, they only account for

15% of national GDP85. This disparity is also reflected and refracted through the lenses of

schooling86 and urban/rural87 inequality. For example, rural Brazilians account for 46.7% of people

living in absolute poverty in Brazil, despite comprising only 15% of the nation’s population88.

Women remain underrepresented in the labour market; despite the gender employment gap

halving since 1990, still only 52% of women are actively employed in the labour market89,

compared to 74% of men90. Moreover, male workers are paid, on average, 50% more than women,

which forms a gender pay gap that is 10% higher than the OECD average91. This is likely due to

higher concentrations of women in low-paid labour sectors, such as domestic labour (98% female)

when compared to industries such as general commerce (33% female) and public administration

(38% female)92.

Youth unemployment, during the 2014-2017 recession, climbed to 45%, leaving 4.5 million

Brazilians under the age of 24 out of work93. This occurred despite improving levels of education for

young people; indeed, student debt repayments are both negating the potential productivity of this

generation and transforming the group into a demographic burden through forcing them to either

drain the resources of economically active family members, or to take jobs that do not compliment

their skill sets. Hence, youth inclusion is another perspective through which to understand the ‘tight

nexus94’ between productivity and inclusive growth.

In 2015, 38.11% of Brazilians earned less than $8 (2005 PPP)95XII per day. This means that 78.5

million Brazilians can be considered as part for the Base of the Economic Pyramid (BoP96XIII), and

hence prospective participants in inclusive businesses. Brazil, it seems, has come a long way in

terms of development. Yet there remains a great deal of capacity for improvement; as the engine-

house of the Latin American economy, and with such a large low-income population.

XII To generate this figure using world bank data, $8 has been converted to its 2011 PPP figure, $9.21 for input into the World Bank PovCal Net. XIII The Base of the Economic Pyramid (BOP) concerns men and women earning less than $8/day (2005 PPP).

25

Methodology

26

4.0 METHODOLOGY

4.1 Operationalization of key constructs

Level of Inclusiveness

The level of inclusiveness was measured through 7-point likert scale with 8 items where a response

of “1” indicated that poor people were not at all included in a company’s operations, while “7”

showed that the given domain included poor people to a great extent. In the first 6 items,

participants were asked to rate how much they included the poor people in their business models

for different entry points. Entry points refer to the roles the poor can take in an inclusive business

model: being an employee, consumer/customer, supplier, distribution channel member,

entrepreneur, or local community. The last two items are questions about the extent to which

inclusivity is emphasized in the mission statements and business strategies of the companies; which

reveals whether inclusivity is integrated into the core strategy of the business.

Organizational format

Participants were asked to select the organizational format in which low income people fit in the

business through a nominal scale. The items which were derived from the literature and in-depth

interviews include formal worker, informal worker, self-employed, informal company,

microenterprise, individual microentrepreneur, small business, agricultural producer and

cooperative.

Inclusivity Intention

Intention of top management of the companies to include poor people in company operations in

the next five years was asked through a 7 point likert scale.

Inclusive Business Awareness

Participants were asked whether they were aware of the concept of Inclusive Business before

participating in the research.

SDG Adoption

Participants were asked to select top five SDGs they think their businesses (including the value

chain) currently have the greatest impact in, and top five SDGs which could provide a business

opportunity for them in the future.

SDG Implementation

Companies were asked to select the actions which will be taken by them within the next five years

to implement the SDGs that they selected as prioritized in the previous questions.

Interest in Inclusive Business Models

Participants were asked about their willingness to know more about and participate in activities

related to inclusive business.

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4.2 Stages of the Business+ Brazil research

Literature Review: Recent academic and non-academic studies on inclusive business and the role of

private sector in development were reviewed, including articles, books and grey literature reports

published by development agents, private sector and public institutions such as UNDP, OECD,

World Bank and Ministry of Planning, Development and Management for the Republic of Brazil. The

information derived from the literature guided the future stages of the research in constructing and

adapting the in-depth interview and survey questions, as well as forming a strong base for the

discussions in this report.

In-Depth Interviews: Five semi structured in-depth interviews were conducted in Brazil with

owners or managers of companies with varying sized from different sectors including technology,

health and services. Participant companies have different levels of involvement in development

efforts, which provided the research team with context-based insights to adapt the Business+

survey tool to suit the needs of this research.

Survey: Business+ survey tool was developed as a baseline survey to understand the current level

of awareness, knowledge and engagement of inclusive business in the private sector in different

countries. This tool was first developed during the Business+ Turkey project, which was followed by

Business+ Philippines and Business+ Brazil projects. A majority of the questions included in the

survey are universally operative; however, adaptations are needed for some questions and items

related to the contextual factors in order to reach better insights and increase the potential impact

of the project.

Findings of the in-depth interviews were used in adapting the survey to the Brazilian context. A

series of meetings were conducted to adapt the questions and items, which was followed by a pre-

test. The survey was finalized with the implementation of the feedback received from the

participants of the pre-test. The final survey tool included 9 main sets of questions with multiple

items, followed by demographic questions, and consisted of 7-point, Likert-scale questions, open-

and semi-open-ended and multiple-choice questions. The link to the online survey was sent by an

email to senior executives of companies from various sectors. 355 responses were included in the

data set for analysis.

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5.0 FINDINGS

5.1 Findings Summary

The general takeaway point from the findings corresponds with the results of the previous

Business+ reports in Turkey (2015) and The Philippines (2017); enthusiasm for inclusive business is

hindered by a lack of conceptual awareness. Companies are not averse to IB, but rather they are

often unaware of its relevance to their work. Moreover, when they learn about IB, they usually

seem inclined to both learn more, and to explore the possibilities of transforming their business to

benefit from inclusivity and skills development.

This intuition was clear from the headline findings of the Business+ Brazil study; of the 355

participants, 69.86% were unaware of the concept of IB, and yet 89.82% want to learn more about

IB, and 84.98% indicated their wish to participate in UNDP-led IB workshops. This underlines the

urgent need to raise awareness of the existence and merits of IB, so that all stakeholders can

communicate through a shared terminology. Beyond volition to learn more, respondents also

expressed a moderate interest in adopting IB practices, scoring 4.06 out of 7 with respect to their

intention to integrate the BoP into their activities in the next five years. The connected desires to

both learn about and shift towards IB practices indicate the imperative need to educate and

facilitate companies towards effectively making the necessary changes to their business practices.

Enhanced focus on IB practices will build upon existing inclusivity within Brazilian business. At

present, respondent businesses scored 3.4 out of 7 for their degree of inclusiveness, with

‘employing poor people’ (3.67), and ‘considering poor people as entrepreneurs’ (3.69) being the

strongest forms of engagement. These two options are interesting insofar as they form very

distinct forms of IB engagement. The former is a good start for working with the BoP yet needs to

be coupled with skills development to ensure that wealth is created with, rather than at the BoP.

The latter, however, strongly emphasises the dynamic power of the BoP as wealth creators.

Respondents were also asked about their involvement with incorporating the SDGs into their

business practices. Brazilian businesses were asked to rank the top 5 SDGs on which they feel they

have the greatest impact, and the top 5 that they believed provided the best business

opportunities. For both questions, SDG number 8, ‘Decent Work and Economic Growth’ scored

highest, followed by SDG #3 ‘Good Health and Well-Being’, SDG #4 ‘Quality Education’ and #12

‘Responsible Consumption and Production’. Interestingly, SDG #1 ‘No Poverty’, which is the first

SDG to be targeted by inclusive business models, was ranked fifth in the list of top 5 SDGs

businesses are currently contributing to. This finding is in line with the low inclusiveness scores of

the participant companies. Futhermore, SDG #1 was not listed among the top 5 SDGs that could

provide a business opportunity for the companies in the next 5 years. This finding points out the

urgent need to create awareness regarding the business opportunities that are brought by inclusive

business models.

Fortunately, more so than IB, businesses are eager to both learn more and engage with the SDGs.

93.80% of participants aim to take positive steps towards SDG alignment over the next 5 years, with

partnership formation being the most popular option for SDG alignment. Effective partnership

29

creation will provide an excellent platform to develop effective understanding and action towards

the SDG amongst businesses in Brazil.

5.2 – Participants

The survey included 355 participants standing for a broad spectrum of industrial sectors. The best-

represented sectors were Administration and Consultancy (72), Education (42), and Information

Technology (48) respectively. Importantly, labour intensive industries such as Construction,

Services, manufacturing jobs also accounted for a significant number of participants. Employment

size matters because greater employment reach provides greater scope for engaging with the BoP

through employment.

30

Figure 7: Respondents by SectorXIV

XIV * Participants were allowed to choose more than one options to define the industries in which they operate. Full List

of ‘other’ respondents, including their approximate clusters, is found in the annex.

31

Figure 7 demonstrates the diverse spectrum of sectors accounted for within the 355 participants;

noticeably, ‘other’ (see annex) is still the largest group, hence demonstrating the reach of the

survey throughout the different facets of the Brazilian economy.

From figures 8-10, it is possible to ascertain the spread of business sizes, which is important as it

directly the effects the amount of wealth that can be creating through IB. Most respondent

companies were small: 85% of respondents had fewer than 100 employees, with 55% having fewer

than 10. This is fairly reflective of the broader picture of Brazilian businesses by size97, with 66.7%

of firms comprising of 1-9 employees, although respondents do comprise an over-representation of

large firms: 3.7% of respondents considered themselves ‘large companies’, and an approximate

8.6%XV of respondents had 200-400 employees; whilst only 1.2% of Brazilian businesses are of this

size. 90.99% of the participating companies are characterised as Micro-, Small- or Medium-sized

enterprises.

XV Assuming a uniform distribution throughout the 200-400 employee category.

32

Only 15.99% of respondents undertake operations outside of Brazil, and only 0.58% describe

themselves as Multinational Corporations. In turn, Social Enterprises comprise 4.65% of

respondents.

33

Figure 11: Employment Format versus Organisation Size

34

The main employment format of the BOP for individual microentrepreneurs and microenterprises

are as micro-entrepreneur and informal worker, as Figure 11 elucidates. On the other hand, more

organized forms of businesses including small and large companies, BOP takes the role of formal

workers and small businesses. This reveals that, currently, microenterprises are engaging with the

BOP through a vulnerable form of employment as informal workers which points out the need for

regulations and control within this domain. The findings for social enterprises are more severe, as

the poor dominantly takes the role of informal companies or informal workers in their business

models. This finding points out a contradiction and needs further elaboration in future studies,

considering that the generally accepted mission and strategy of social enterprises is to create long-

term social impact through sustainable ways of doing business. Finally, cooperatives emerged as a

main employment format only for large companies, but not listed as a major way of interacting

with the poor for the other organization types.

35

The proportion of informal workers is higher in administrative sector, followed by the educational and IT sectors. The same applies for self-employed and individual micro entrepreneurs. Individual micro entrepreneurs present a higher proportion of employment format in IT if compared to other sectors.

36

5.3 Inclusive Business Findings

Participants were asked the roles of the BoP with whom they interact for their business activities

(i.e. as informal workers, small business, agricultural producers etc.). The leading roles were as self-

employed agents and individual micro-entrepreneurs (141 companies reported working with the

BoP in this capacity respectively).

One key takeaway from the format in which the BoP fit into the businesses is the probable

vulnerability of several of the employment formats; 150 companies report working with informal

workers or informal companies. In contrast, cooperatives – a more stable employment form which

collectivises risks and can secure legal recognition – were only engaged with by 53 participating

companies.

Inclusivity, awareness of inclusivity, and impetus to become more inclusive form the backbone of

this study, and thus the following findings form the crucial learnings from the survey:

37

Figure 14: Key Learnings

Conceptual awareness of IB is currently low, with 69.86% of being unaware of what IB means prior

to the survey. Nonetheless, from the brief priming garnered through participation in the survey,

89.82% of respondents stated their desire to learn more about IB, and 84.98% indicated their wish

to participate in UNDP-led IB workshops. Concrete commitments towards IB were less forthcoming,

yet not altogether absent. Participants were asked to declare, on a scale from 1-7XVI, the extent of

their intention to shift their business activities towards IB. The results averaged 4.06 – showing the

intention of participants to integrate the BoP into their activities to a moderate extent going

forward. The distribution of responses fits closely with a normal distribution with a slight weighting

towards to; that is, approximately one third of responses answered between 1-3 (29.85%), 4

(34.65%), and 5-7 (35.49%).

XVI Wherein 1 represented no intention to incorporate the BoP into business activities, 7 indicated an intention to integrate the BoP ‘to a great extent’, and 4 acted as a medium point of a ‘moderate extent’.

38

Figures 15 and 16: IB current knowledge and appetite.

39

Emphasising the poor as a part of the business strategy (controlled by sector) highlights a possible

cross-section of differing emphases of inclusivity depending on company size. As one may expect,

social enterprises rate, on average, their emphasis on the poor in their business strategy at 6 out of

a possible 7, making them the most inclusive sector in this regard. The average score, 3.4, was

elsewhere surpassed by micro-enterprises, large companies, and multi-national companies. One

postulation for explaining this could be that ‘emphasising the poor in a business strategy’ is a

necessity for some, and a luxury for others. For example, for micro-entrepreneurs and enterprises

are likely to be located peripherally to core business districts and will be more likely to deal first-

hand with small-scale clients, and thus they are more likely to directly deal with the BoP. In

contrast, large and/or multinational companies will be more likely to have the resources to

designate strategy formulation to professionals and/or consultants, who will be versed in ESG/SDG

terminology, the inclusion of which can help the firm to derive value from improved public

relations. Sitting between these two extremes are small and medium sized firms, which are less

likely to have the necessity of engaging with the BoP but will also lack the corporate know-how to

add value to their operations through weaving a verisimilitude of social and environmental

contentiousness.

40

Given that small and medium sized firms form the bulk of respondents, this brings to light the

necessity of raising awareness of IB amongst MSMEs. Especially when this consideration is

tempered with the enthusiasm that respondents show towards learning more about IB. This

includes a 79.7% majority of respondents in favour of attending seminars and workshops on IB

models, as per figure 18.

41

With respect to how current activities relate to IB, participants responded with their involvement in

certain inclusive practices. Once again, responses were graded on a scale from 1-7, wherein

participants answered the extent to which they engage in the given practices. The average figure

for inclusivity amongst the respondents was 3.40, indicating moderate engagement in inclusive

practices for participating Brazilian businesses. Of the eight available options, the range between

the weakest-scoring form of engagement, ‘targeting poor people as consumers’ (3.05), and the

strongest, ‘considering poor people as entrepreneurs’ (3.69), is only 0.64. Hence, across the 355

participants, there is no strong difference in the prevalence of the different types of inclusive

practices. One general trend sees a slight emphasis towards engagement with the BoP through

employment and strategy, and away from seeing the BoP as customers and distributors, which

points out to a lack of awareness regarding the opportunities brought by targeting the BOP markets

as customers and meeting their previously unmet needs.

42

Despite a fair degree of homogeneity amongst entry points of the poor, distributions of responses

to each entry form were more diverse. For example, ‘investing in less developed neighbourhoods’

scored the same as the mean IB result for all practices – 3.40 – yet within this figure, 30.42% of

respondents selected ‘1’ – indicating that they do not invest at all in less developed

neighbourhoods. This heavy weighting towards ‘not at all’ is counter-balanced by 49.58% selecting

4-7. Similar distributions are replicated throughout the other responses, with ‘1 – not at all’ and ‘4 –

to a moderate extent’ being the largest and second largest response in each case.

‘Emphasising the poor in your business strategy’, as was expanded by sector in figure 17, scores

above average, 3.63, perhaps indicating the growing problem of SDG/inclusivity-washing amongst

large firms and demonstrating the disjoint between pledges and action. Alternatively, it can

demonstrate an implementation lag between identifying the potential value of IB and making

structural changes to one’s value chain to benefit from these changes.

A similar logic can apply to ‘emphasising the poor in your mission statement’, which also scores an

above-average 3.45. The reduced disparity from the mean value in this case may be due to mission

statements being more pithy, binding, and central to a firm’s identity than its strategy.

‘Considering the poor as entrepreneurs in your business’ model is the highest scoring response at

3.69. The popularity of this option may profit from its vagueness, as it is not something particularly

tangible that will have a clear quantifiable impact on the business. This acts as a sharp contrast to

43

the second most popular option – employing poor people – which scores 3.67. Employing poor

people acts as a strongly tangible metric for inclusivity. However, whilst IB foundationally concerns

corporate engagement with the BoP, employing poor people is only a helpful step in inclusivity if

employees share in the wealth creating in the firm. For example, a firm which develops the skills of

BoP employees, and provides them with education and assistance can be considered more inclusive

than a firm which would take the same people on in either an unpaid or minimum-wage format.

Nonetheless, employment is the most popular form of tangible engagement with the BoP. It

scores considerably higher than the below-average-scoring engagement through distribution,

treating the BoP as customers, and dealing with the poor as suppliers. This may be a consequence

of labour being considered as a commodity for which the BoP can provide the lowest price, yet for

supply, distribution, and custom, reliability, established relations, formality, resources, and

economies of scale may be prioritised. This means that a working priority for IB awareness-raising

can be expanding firms’ understanding of the breadth of IB potentialities, and their concomitant

advantages.

Figure 22 demonstrates the spread of results within each entry point. All entry points spike for the

values of 1 (not at all) and 4 (to a moderate extent). More popular options see a padding around 5,

6, and 7, and thus carry a slight bulge to the left of their radar diagrams. ‘Emphasising the poor in

your business strategy’ witnesses a slight bulge for ‘2’, implying that several firms give passing, yet

not thorough, mention to the BoP in their strategy. Which shows that the relevance of inclusivity in

the Brazilian context is extensive, if not intensive.

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Figure 21: Prioritisation of Inclusivity by Entry Point

45

5.4 SDG Findings

Corporate SDG-alignment is a central pillar to the 2030 Agenda and is integral for the provision of

resources and dynamism towards securing sustainable development. Brazilian businesses were

asked to rank the top 5 SDGs on which they feel they have the greatest impact, and the top 5 that

they believed provided the best business opportunities. For both questions, SDG number 8,

‘Decent Work and Economic Growth’ scored highest. SDGs 3, 4, and 12XVII also appeared in both

lists, with SDG 1 – ‘No Poverty’ – changing for SDG 9 – ‘Industry, Innovation and Infrastructure’ – in

the list of business opportunities. This suggests that Brazilian business still see their contributions to

the SDGs within the writ of economic development and the offshoot of their products and services

– rather than embracing diverse aims into the core business model. Whilst this is not incongruous

XVII ‘Good Health and Wellbeing’, ‘Quality Education’, and ‘Responsible Consumption and Production’ respectively.

46

with the ethos of the SDGs, effective SDG education should include how all SDG-engagement can

be relevant to the successful running of a profitable business.

Figur

e 22: Top 5 SDGs Impacted by Respondents

47

48

Figure 23: Top 5 SDGs to be Prioritised by Respondents

49

Companies were also asked what actions they intend to take to implement SDG-alignment. The two

most frequently occurring strategies are ‘Establishing Partnerships in line with the SDGs’ (198

respondents) and ‘Embedding Target SDGs to Core Business Strategies’ (172). These findings are in

line with the main findings of the previous Business+ studies and the extant literature, emphasizing

the importance of establishing partnerships and making sustainability a core part of the business

strategy rather than thinking of it as an ancillary activity to flourish inclusive and sustainable

business models. The emphasis on establishing partnerships points to the continued relevance of

the UNDP’s role in encouraging the private sector to realise the benefits of multi-sector action

towards achieving the SDGs.

In contrast, the two rarest strategiesXVIII were ‘Making Donations in line with Target SDGs’ (56) and

‘Mentioning SDG Contributions in Company Reports’ (82). With the rising awareness regarding the

more sustainable ways of contributing to development efforts, companies’ focus more on creating

higher social impact with their activities and embedding social responsibility into the core strategy

of the business, rather than making donations. This awareness may form the basis of a perspective

shift towards the adoption and implementation of SDGs. On the other hand, companies should also

be aware of the benefits of embedding the SDGs and the inclusiveness mindset into their core

strategies, ranging from an improved brand image to access to alternative sources of finance

through impact investment. As indicated in the previous Business+ studies, measuring and

communicating the impact created through adopting Inclusive Business and the SDGs is a key

success factor for companies. Low scores for ‘Mentioning SDG Contributions in Company Reports’

points out the need to emphasize the importance of measuring and communicating the impact.

XVIII Excluding the null option – ‘None’ – which 22 companies opted for.

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51

Policy Implications; What’s Next?

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6.0 Policy Implications: What’s Next?

The recommendations and policy implications presented in this section were derived from the

findings of the Business+ Brazil research and are supported by empirical evidence from previous

studies in the field as the UNCT Brazil SDG Action Plan MAPS Brazil Engagement Report (2018) and

the Human Development Report (2016). It is important to note that it is beyond the aim and scope

of this project to advise the actors who should be responsible for the development and

implementation of these strategies as such would require further research. A coordinated effort is

required to clarify the roles different actors can take in the ecosystem and to strengthen the

collaborations among them in the way to increase the impact. The implementation of the policy

recommendations should be tailored according to territory´s distinct development challenges, the

engagement of local actors, and the capacities of state and municipal government to deliver.

Building upon the literature review and survey data, the following conclusions can be deduced,

which then provide a platform to ground policy implications. These are:

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This provides indication for the integral working areas of IB policy. These policy measures should

complement the current state of policy-based multi-sector IB support.

6.1 - Raising awareness

An encouraging outcome from the Turkish (2015) and Filipino (2017) Business+ studies is the big

appetite to learn more about IB amongst respondents following a brief priming on the subject

matter through the survey.

Similarly, the Business+ Brazil study revealed that 89.98% of the respondents are interested in

learning about inclusive business, which provides fertile ground to deliver assistance on IB

implementation. This interest is particularly manifested in figure 18 indicating 84.98% of interest in

attending UNDP-led workshops on IB business models.

Therefore, the opening imperative with awareness raising is to bridge the gap between intention

and knowledge.

Awareness Working Areas:

(1) Conceptual Awareness

Most respondents had not previously heard of the term ‘inclusive business’. As such, priming

exercises such as the Business+ survey create the first step in developing recognition of the role the

private sector can play in sustainable development through engagement with the BoP. The initial

exercise should indicate that IB practices are widely applicable and can generate additional revenue

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sources through tapping new markets, fostering systemic innovations, and unlocking impact-

minded finance.

One the most efficient ways to build this awareness is to collaborate with partner networks in the

private sector, such as SEBRAE, to disseminate knowledge and connect potential IB practitioners

with educational resources.

UNDP has an extensive track record of organizing awareness-raising programmes.

There are a number of ongoing and foreseen SDG-related training activities amongst Government

institutions and IB can be integrated to these activities. The National School of Public

Administration (ENAP) is preparing courses on specific SDGs or groups of SDGs, with support of UN

Agencies and other partners: on food security (SDG2) environment (SDGs 13-15), innovation and

industrial policy (SDG 9), gender equality (SDG 5) and Partnerships (SDG 17).98

One latent source of IB theory resources is the iBAN resource archiveXIX, which includes all G20

publications on the concepts and roadmaps required for IB. The website also contains a knowledge

sharing platform, and IB training tools. While the IBAN resources archive contains a plethora of

global resources on IB, which are beneficial for understanding IB in a variety of forms, sectors and

regions, IB implementing actors in Brazil may also profit from the stories and experiences of local

companies with IB models. Case studies from Brazilian Business Call to Action member companies

such as Banco Santander, Natura, PUPA, SAMBAZON and Itaú Unibanco can provide relevant, local

insight to carrying out IB in Brazil in a variety of different models and sectors. These case studies

demonstrate how IB can engage the BoP as employees, suppliers and entrepreneurs as well as

customers and consumers of their goods and services.

Finally, information hubs within the potential IB ecosystem: such as universities, quangos, NGOs,

IOs, and governmental organisations, should be prompted through partnerships to focus on

providing reliable and applicable theory and data about local applicability, network, and

opportunities for IBs.

(2) Awareness of the Commercial Viability of IB

Central to IB awareness-raising – passive and active – is the need to clearly distinguish that IB

models are, by definition, commercially viable, and will augment, rather than hinder, revenues. The

BoP are underserved by mainstream business, despite having an enormous wealth-creating

potential; and making full use of the talents, specific needs, and spending power of the BoP is a

profitable exercise. Participants will also be interested in learning about the scope for social impact

that inclusive business can have, and how it can directly improve opportunities and resilience in

their communities. It is estimated IBs has the potential to unlock the $5 trillion market at the base

of the pyramid99 .

XIX IBAN. (2019). Retrieved from: https://www.inclusivebusiness.net/

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(3) Awareness of Implementation Strategies

The success of sustainability-oriented incubators, innovation hubs, and accelerators can be drawn

upon to develop a range of methodologies and roadmaps for either transforming business models

into IB models or creating new IB models. This can help to rectify an implementation lag between

the identification of the potential value of IB to a firm and the business-model transformation

necessary to start generating impact and wealth through IB. To assist in the provision of effective

implementation strategies, IB support-networks must build upon the previous awareness-raising

steps; these include open-access UNDP IB workshops, free access to IB resources online, open

publication of IB transformation methodologies, effective network support, and continuing hands-

on consultation. Moreover, these access points for awareness raising can provide a two-way

information exchange – with participant firms providing a continuous flow of data learnings, best

practices, and feedback about the IB implementation process.

Multi-stakeholder platforms like the Business Call to Action (BCtA), a global membership

community for inclusive business practitioners hosted by UNDP, seek to create a worldwide

community of practice for IB. Such membership platforms enable companies to tap into best

practices in their industry and region as well as explore success stories from other countries and

sectors. In effort to provide further insight for companies into IB implementation, BCtA worked

partnered with the multinational professional services company, Deloitte, to map the journey of

inclusive business maturity and subsequently create a report and accompanying tool for companies

to identify their own maturity to implement IB. Helping companies understand that IB is not

something that a company either is or is not or has or does not have, but is rather a journey from

awareness to exploration to building to championing, is critical to long-term adoption and success

of IB.(4) Network interchange

Existing IB platforms within Brazil should be utilised so as to facilitate knowledge exchange and

resource awareness. Mainstreaming these interchanges will also provide effective multi-lateral

entry points for stakeholders within the IB ecosystem in Brazil; for example, a communicative

exchange network can work to connect impact-minded financiers with capital-seeking IBs, or to

connect IBs with similar business to promote unionisation and accreditation. To facilitate this kind

of collaborative environment, convening parties such as UNDP and SEBRAE can develop platforms

to enable free exchange of knowledge and network access to IB practitioners in Brazil.

6.2 – Institutional Capacity Building

Although, Brazil has a higher rate than other BRIC countries in the creation of new businesses, the

literature review provided a diagnosis of capacity gaps impeding business in Brazil. These capacity

gaps are notably burdensome in peripheral regions and amongst low-income communities. These

capacity gaps include ‘last mile’ infrastructure deficiencies, bureaucratic burdens, high levels of

informality, and a tightening politicised oversight of potential supportive actors. 100 Suggesting

improvements in physical infrastructure requires centralised governmental action; the suggestion

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of which is beyond the remit of IB policy implications. Instead, the issue can be viewed as an

opening for IBs to overcome obstacles posed by physical capacity shortfalls; as with the Programa

Vivenda case study (page 19), which creates amenity renovation packs specially tailored to poorly

connected favela-dwellings. However, reducing business discontinuation rate is still a challenge.14

Business environment can be strengthened by stimulating incentives, investments, access to

information and implementation support for business models capable of serving the low-income

segments.

Incentive Frameworks

Establishing institutional capacity to underpin a healthy IB ecosystem should be prioritised.

According to the foundational G20 IB framework – for a flourishing IB network; information

incentives, finance, and capacity are the four conjunctive catalysts to foster IBs.XX For incentives,

flagship initiatives, such as the Incluir call for businesses can help to spur interest in IBs, and thus

raise public and investor awareness of their practices. As the implementing partner in this survey,

SEBRAE can examine the scope for creating incentive frameworks for IBs; these could include tax

holidays, network support schemes, accreditation systems, and regular competitions.

Legal assistance and one-stop-shops

Beyond incentivisation, changes in the policy environment are necessary to aid the creation of

inclusive businesses. For example, the previously cited consistent low score for ‘ease-of-doing

businessXXI’ in Brazil and prolific informality are particularly harmful to many IBs, which live, by

nature, on the peripheries of mainstream business activities. Several approaches can be taken to

overcome this situation: The first would be data collection on the informal economy and use

learnings from this research to advise both the government and businesses on how to ease

formalisation. Not only will formalisation aid governmental direct resource mobilisation, enhanced

ease of doing business will allow business to grow sustainably. Policy measures to build institutional

capacity in this regard can include the creation of ‘one-stop-shops’ in low-income districts,

providing free legal consultation and paperwork for all the steps needed to legitimise a business.

Moreover, tailoring this service to IB can include protracted consultative assistance, for example,

keeping the network of IB clients informed about any legislative changes and incentives that may

directly affect their business.

Developing Innovative Capacity

Innovation, that is, the emergent property of components of a system actively or passively

communicating to improve operational efficiency, is a core ingredient in IB models. This is because

engagement with the BoP in a business environment requires atypical practices, and often involves

the need for inventive systemic solutions, such as alternative payment and financing solutions, or

inventive products tailored to BoP-specific requirements. The imperative going forward, therefore,

is to inculcate the relevance and potential of IBs into the innovation hub scene.

Accreditation and Certification

XX See section 6.3 XXI See endnote 40

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Accreditation and certification can provide inroads for the calibration and benchmarking of IBs. This

can provide IBs with a new value channel whilst simultaneously generating awareness and

enthusiasm for IBs. Furthermore, a system of accreditation or certification provides the opportunity

for participating firms to form IB unions and associations which can advocate the interests and

practices of IB firms and share information and best-practices between each other.

6.3 – Enhancing capacity of inclusive businesses

Impact measurement

Demonstrating the value of IB to governing entities or impact investors will require a demonstrable

positive impact. Moreover, given the SDG-internalisation priority area, as outlined by the Brazilian

Voluntary National Report (VNR), SDG-impact will be fundamental tool in conveying impact.

Ascertaining reliable insights on impact will require close continual partnerships with IB

practitioners, which can be developed through effective network support mechanisms.

To unlock investments in the SDGs, which would also be also relevant to IBs UNDP launched SDG

Impact in September as a one-stop shop for investors of all types - from profit-seeking to

philanthropies to access information, tools and resources. SDG Impact – a partnership between

UNDP and the Impact Management Project's network of partners (including IFC, GRI, GIIN, Social

Value, WBA, PRI, GSG) will offer the following resources:

o Standards that will clarify the policies and practices for impact measurement and

management that they will be expected to adhere to, voluntarily, when making “SDG-

enabling” investments;

o On-line training and a certification training programme for accredited independent

certifiers;

o An SDG Impact Seal will be given to authenticate a firm’s adherence to the standards,

which will aim to leading companies/investors, to want to achieve the SDG Impact Seal.

o While in its early stages, the SDG Impact’s tool kit will also include investor facing

country mapping reports and investor convenings, all of which will be very helpful for

firms interested in identifying opportunities for SDG enabling investments.

Moreover, Business Call to Action (BCtA), launched the online ‘Impact Lab’ with an aim to support

companies in identifying, measuring and managing company’s impact to support company’s

business decisions. It covers the full impact measurement cycle to support companies in

understanding, proving and improving their impact and integrating insights back into their strategic

and operational management decisions. The Lab uses the SDGs as a framework for measuring

company’s impact and supports businesses to visualize how operations, strategies and goals link

and contribute to the SDGs.

Building on Brazilian companies’ stated eagerness to establish partnerships for achieving the SDGs,

as well the need to measure and communicate company impact, government, development and

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private sector actors in Brazil can look to a regional success story from Colombia. Partnering with

and utilizing synergies from the Global Reporting Initiative (GRI), UNDP and BCtA, the National

Planning Department of Colombia and the Government of Colombia developed a roadmap to

collect and analyse data from the private sector about its impact and contribution towards the

SDGs in order to inform the Colombian VNR at the High-Level Political Forum in 2018. A multi-actor

team worked with companies across the country to align frequently reported corporate

sustainability metrics with the SDGs and capture company impact in a more streamlined manner.

Identifying, adapting and building on even the most nascent corporate sustainability reporting such

that its impact on the SDGs and low-income communities is clearer will further lead companies to

better understand how their core business intersects with sustainable development and

commercial and social profit.

Improved data collection

Vital to operative impact assessment is reliable data collection. There are several integral actors in

this process: collaborative and continuous assistance for IBs through local networks will allow an

access corridor for up-to-date information exchange; information hubs such as the UNDP, research

foundations, IOs can develop similar research processes to the Business+ to provide more precise

insights into the status of IB in Brazil, which can then be openly published to assist implementation

partners; businesses can be encouraged to publish accurate reports on their IB activities; and an

effective and well-curated IB platform will help with data collection through the provision of direct

access to businesses.

UNDP Brazil in partnership with SEBRAE have launched a set of reports to provide relevant data for

the inclusive and social impact businesses ecosystem in Brazil, such as:

• Knowledge Management of inclusive and social business ecosystem

• Inclusive and social Business Acceleration: an overview of current practices

• Profile of social impact business in Brazil

Information distribution network development

Although the distribution of information should be based on the target audience, business courses

enriched with IB in universities and other learning institutions is one way of information distribution.

Alternatively, practicing IBs or IB-convening organisations can recycle data back into their

business/advisory practices to act as a guide.

Connecting IBs to specialised finance

Building on the solid foundations of the IB Framework, a unified set of IB criteria would be very

imperative to identify IBs more effectively and consistently. A structured set of high-level

commonly used features would provide Governments with further guidance to set up IB promotion

policies, support investors to identify IB investments and provide companies with self-assessment

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tool. Having clear understanding of what constitutes an IB is important also for business

associations, incubators, and development partners to align their work more effectively around IB.

Convening agents can assist IBs in presenting their impact data in the appropriate format for

potential investors and can also provide networking events or specialist-training sessions to

connect IBs to appropriate financing systems. Treating the BoP as entrepreneurs may require the

utilisation of non-traditional financing mechanisms, such as microcredit, peer-to-peer lending, and

crowdfunding; as such, fostering appropriate financing solutions, as well as providing concomitant

financial literacy skills development trainings, will be a vital policy step towards creating a vibrant IB

ecosystem in Brazil.

Increasing Businesses’ resilience and enhance continuity

“Focusing on how to build “resilience”, or. This is particularly important for the region’s 200 million

vulnerable people: those who are neither “poor”, living below a US$4/day poverty line, and have been

unable to move to middle class status (over US$10 /day). Initial estimations put 29 million people in risk of

sliding into poverty or vulnerability

90.99% of the participating companies in this survey are characterised as Micro, Small or Medium-

sized enterprises and business discontinuation is recognized as a challenge in Brazil.101 The ability to

absorb external shocks—financial crisis or natural disasters—without major social and economic

setbacks is key. In this regard, MSMEs can be strengthened by stimulating incentives, investments,

access to information and implementation support for business models capable of serving the low-

income segments. In order to create more resilient communities and increase local capacity, UNDP

provides operational and technical support to MSMEs for them to develop ‘Business Continuity

Plans’ through the Connecting Business Initiative (CBi).

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Annex and Endnotes

61

ANNEX 1: LIST OF COMPANIES LISTED UNDER ‘OTHER’ FOR THEIR SECTOR (SEC 4.2):

*Other Comércio Internacional

Camping e Hospedagem Licitações Públicas

Certificação Revenda de Bijuterias, e Perfumes

Comércio de Alimentos Secos e Molhados com Assados aos Finais de Semana

Turismo

Prestação de Serviços Supermercado

Logística Bijuterias (Vendas)

Comércio de Bebidas e Alimentos Química

Recuperação de Áreas Ind. de Cosméticos

Viagens e Turismo Industria Brinquedos

Reliogoso Feiras e Eventos

Psicoterapias Holdings

Auto Peças Comércio

Logística Integrada Saude e Beleza

Desenvolvimento de Projetos COOPERATIVA

Autoescola Comunicação

Serviços de Contabilidade e Consultoria Serviços Especializados de Personalização e Fornecimento de Equipamentos de Primeira Linha para Pilotos do Automo

Importacao e Exportação Serviços

Comercio de Alimentos Naturais Silvicultura

Marketing Marketing

Beleza Prestação de Serviço

Importacao & Fornecimento de Capacetes + Acessorios para Automobilismo, e Personalização (Pinturas Especiais Personalizadas em Capacetes para Automobilismo)

Consultoria em Pesquisas

Mobiliário Turismo

Consultoria e Treinamento Alimentação Natural

Beleza Iluminação e Elétrica

Medicinas ALTERNATIVAS Saúde Integrativa

Comércio de Higiene e Limpeza Consultoria

Consultoria de Engenharia e Meio Ambiente Transporte

Advocacia Papelaria

Alimentos Veículos

Panificação Escola de Consciencia e de Meditação - Mindfulness Advaita

Coaching Desenvolvimento de Bairros Planejados

Comercio Representação

Conservação Ambiental Empoderamento de Mulheres

Terceirização Cemitério

Apoio Governamental Agroindustria

Capacitação para gestão eficaz nas ações de políticas públicas voltadas aos maiores de 60 anos.

Consultoria Contabil e Financeira

Assessoria para o Terceiro Setor Contabilidade e Advocacia

Palestras e Treinamentos Varejo Alimenticio

Latoaria Fitness

Desenvolvimento de produtos globais - bens duráveis e semi-duráveis. Importação, exportação e distribuição.

Turismo de Base Comunitária, Produção Associada ao Turismo, Economia Criativa

Juridico Celilos

1 Organisation for Economic Co-Operation and Development. (2015). Development Co-operation Report 2015: Making Partnerships Effective Coalitions for Action. OECD Publishing 2 Prahalad, C. (2014). The fortune at the bottom of the pyramid. Upper Saddle River: Pearson Education. 3 Shifter, M. (2010). Oscar Guardiola-Rivera's "What If Latin America Ruled the World,." Retrieved from http://www.washingtonpost.com/wp-dyn/content/article/2010/11/05/AR2010110503427.html?noredirect=on

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4 Shixue, J. (2010). Latin American Politics after the “Third Wave” of Democratization and Its Future Prospects. Procedia - Social And Behavioural Sciences, 2(5) 6 By 15.2% between 2002-2016. Ibid. 8 OECD/CAF/ECLAC (2018), Latin American Economic Outlook 2018: Rethinking Institutions for Development. Retrieved from https://repositorio.cepal.org/bitstream/handle/11362/43514/1/LEO2018_en.pdf 9 UNDP. (2016). Regional Human Development Report for Latin America and the Caribbean Multidimensional progress: well-being beyond income. 10 OECD/CAF/ECLAC (2018), Latin American Economic Outlook 2018: Rethinking Institutions for Development. Retrieved from https://repositorio.cepal.org/bitstream/handle/11362/43514/1/LEO2018_en.pdf 11 ECLAC. (2018). Latin America and the Caribbean: Growth Projections for 2018 and 2019. 12 Price Waterhouse Coopers. (2014). PwC Survey on Sustainable Development in Latin America. PwC. Retrieved from https://pwc.blogs.com/files/pwc-survey-on-sustainable-development-in-latin-america-report-1.pdf (p.5) 13 World Business and Sustainable Development Commission. (2017). Sustainable Business Opportunities in Latin America and the Caribbean. Retrieved from http://s3.amazonaws.com/aws-bsdc/BSDC1017_LATAM_final3.pdf 14 World Bank Open Data. (2018). Retrieved from https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=ZJ-BR

17 Inter-American Development Bank. (2017). The Year in Review. Washington D.C. (p.27). 18 OECD. (2018). Brazil Economic Survey. OECD. Retrieved from http://www.oecd.org/eco/surveys/Brazil-2018-OECD-economic-survey-overview.pdf 19 World Bank. (2018). Brazil Overview. Retrieved from http://www.worldbank.org/en/country/brazil/overview 20 Ibid. 21 Ibid. 22 Brazil GDP. (2018). Retrieved from https://tradingeconomics.com/brazil/gdp 23 Instituto Brasileiro do Geografia e Estatistica. (2018). Síntese de Indicadores Sociais. Sao Paolo: IBGE. 24 Martinez-Diaz, L. (2009). Brazil: The “B” Belongs in the BRICS. In L. Brainard & L. Martinez-Diaz, Brazil as an Economic Superpower? (p. 2). Washington D.C.: Brookings Institute 25 Schneider, B. (2009). Big Business in Brazil: Leveraging Natural Endowments and State Support for International Expansion. In L. Brainard & L. Martinez-Diaz, Brazil as an Economic Superpower? (p. 180). Washington D.C.: Brookings Institute. 26 Ibid (p.161) 27 Deloitte. (2018). Corporate Tax Rates 2018. Deloitte. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/global/Documents/Tax/dttl-tax-corporate-tax-rates.pdf 28 United Nations Development Program. (2015). Inclusive Markets in Brazil: Challenges and Opportunities for the Business Ecosystem. New York: UNDP. 29 Ease of Doing Business in Brazil. (2018). Retrieved from https://tradingeconomics.com/brazil/gdp 30 Taxa de desocupação, jan-fev-mar 2012 - nov-dez-jan 2019: Monthly dissemination. (2019). Retrieved from https://www.ibge.gov.br/en/np-statistics/social/labor/16833-monthly-dissemination-pnadc1.html?=&t=series-historicas 31 Brazil Inflation Rate. (2018). Retrieved from https://tradingeconomics.com/brazil/inflation-cpi 32 Including a 1.5% tolerance band. Ibid. (p.7). 33 Brazil GDP. (2018). Retrieved from https://tradingeconomics.com/brazil/gdp 34 OECD. (2018). Brazil Economic Survey. OECD. Retrieved from http://www.oecd.org/eco/surveys/Brazil-2018-OECD-economic-survey-overview.pdf

36 Law no.128/2008. Ibid. (p.49) 37 Conheça os Objetivos de Desenvolvimento Sustentável. (2017). Retrieved from http://www4.planalto.gov.br/ods/assuntos/sobre-os-ods 38 Monteaparto, C. (2017). Comissão Nacional ODS. Retrieved from http://www4.planalto.gov.br/ods/menu-de-relevancia/comissao-ods

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40 Ministry of Planning, Development and Management for the Republic of Brazil. (2017). Brazil Voluntary National Review. (p.26). New York: UNDP; Decreto No. 8,892, de 27 de outubro de 2016, D.O.U. de 27.08.2016. (Brazil). 41 Ministry of Planning, Development and Management for the Republic of Brazil. (2017). Brazil Voluntary National Review. (pp.26-28); Comissão Nacional ODS Brasil. (2017). Plano de Ação 2017-2019 (pp. 28-30). 42 Relatório dos Indicadores para os Objetivos de Desenvolvimento Sustentável. (2019). Retrieved from https://indicadoresods.ibge.gov.br/relatorio/sintese 43 Ministry of Planning, Development and Management for the Republic of Brazil. (2017). Brazil Voluntary National Review. (p.38) 44 About National Agenda Brazil. (2017). Retrieved from https://www.sdgphilanthropy.org/group/43/about 45 Ibid. 46 This corresponds to article 2, clause 3 of Decreto No. 8,892, de 27 de outubro de 2016, D.O.U. de 27.08.2016. (Brazil), and axis 5 of Comissão Nacional ODS Brasil. (2017). Plano de Ação 2017-2019 (p.33). 47 Guterres, A. (2017). “Remarks to Economic and Social Council on Repositioning the UN Development System to Deliver on the 2030 Agenda.” Retrieved from https://www.un.org/sg/en/content/sg/statement/2017-07-05/secretary-generals-remarks-economic-and-social-council-repositioning 48 See for DCED evidence on how private sector development increases income and welfare for poor people

https://www.enterprise-development.org/what-works-and-why/evidence-framework/

49 Deloitte. (2017). 2030 Purpose: Good Business and a Better Future. Retrieved from https://www2.deloitte.com/content/dam/Deloitte/global/Documents/About-Deloitte/gx-2030-purpose-report.pdf 50 Accenture. (2018). Transforming Partnerships for the SDGs. Retrieved from https://www.accenture.com/tr-en/insight-un-global-compact-ceo-study 51 United Nations Development Programme and Deloitte. (2016). Uncharted Waters: Blending Value and Values for Social Impact Through the SDGs. Retrieved from https://www.businesscalltoaction.org/sites/default/files/UncharteredWatersReport_January2017_web.pdf 52 Ibid. 53 Business and Sustainable Development Commission. (2017). Better Business Better World. Retrieved from http://report.businesscommission.org/report 54 Business and Sustainable Development Commission. (2017). Better Business Better World Latin America and the Carribean. Retrieved from http://report.businesscommission.org/uploads/Better-Business-Better-World-Latin-America-the-Caribbean.pdf 55 Steiner, A. (2018). “How the Private Sector Can Align to the SDGs.” Retrieved from http://www.undp.org/content/undp/en/home/news-centre/speeches/2018/how-the-private-sector-can-align-to-the-sdgs.html 56 United Nations Brazil Country Team. (2018). Mainstreaming, Acceleration and Policy Support (MAPS): SDG Action Plan Brazil Engagement Report. 57 Ibid 58 Patzdorf, L. (2018). Brazil Green Finance Initiative (BGFI) holds first meeting for 2018. Retrieved from https://www.climatebonds.net/2018/04/brazil-green-finance-initiative-bgfi-holds-first-meeting-2018 59 United Nations Development Program. (2015). Inclusive Markets in Brazil: Challenges and Opportunities for the Business Ecosystem. (p.30) New York: UNDP. 60 Ibid. (p.3). 61 Ibid. 62 Why Inclusive Growth Is a Model for the Future. (2018). Retrieved from https://emerge85.io/Insights/why-inclusive-growth-is-a-model-for-the-future/ 63 G20. (2015). G20 Inclusive Business Framework. Retrieved from http://g20.org.tr/wp-content/uploads/2015/11/G20-Inclusive-Business-Framework.pdf 64 United Nations Development Program. (2015). Inclusive Markets in Brazil: Challenges and Opportunities for the Business Ecosystem. (p.65) New York: UNDP. 65 UNDP IICPSD. (2017). Business+ Philippines. UNDP IICPSD. Retrieved from http://www.ph.undp.org/content/philippines/en/home/library/privatesectorsustainabledevt/InclusiveBusinessPhilippines.html 66 Ibid. 67 Deutsche Gesellschaft fur Internationale Zusammenarbeit. (2013). Inclusive Business Models: Options for Support Through PSD Programmes. Retrieved from https://www.giz.de/fachexpertise/downloads/giz2014-ib-models-rz.pdf

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68 G20. (2015). G20 Inclusive Business Framework. Retrieved from http://g20.org.tr/wp-content/uploads/2015/11/G20-Inclusive-Business-Framework.pdf 69 UNDP and IICPSD. (2016). “Business +: Inclusive Business: A New, Sustainable and Innovative Private Sector.” Retrieved from http://www.iicpsd.undp.org/content/istanbul/en/home1/library/reports/BusinessPlus.html 70 UNDP, IICPSD and Philippines Board of Investments. (2017). Business+ The Philippines. Retrieved from http://www.iicpsd.undp.org/content/istanbul/en/home1/library/reports/business--philippines.html 71 UNDP and IICPSD. (2016). “Business +: Inclusive Business: A New, Sustainable and Innovative Private Sector.” Retrieved from http://www.iicpsd.undp.org/content/istanbul/en/home1/library/reports/BusinessPlus.html 72 IICPSD and Philippines Board of Investments. (2017). Business+ The Philippines. Retrieved from http://www.iicpsd.undp.org/content/istanbul/en/home1/library/reports/business--philippines.html 73 Sürdürülebilir Kalkınma İçin Kapsayıcı İş Modelleri. (2017). Retrieved from http://anahtar.sanayi.gov.tr/tr/news/surdurulebilir-kalkinma-icin-kapsayici-is-modelleri/9357 74 Arama Konferansi: Kapsayıcı Piyasalar İnşasına Yönelik İş Modelleri Geliştirme. (2018). Retrieved from http://www.tbd.org.tr/arama-konferansi-kapsayici-piyasalar-insasina-yonelik-is-modelleri-gelistirme/ 75 Subalti, T. (2017). Koç Üniversitesi'nden sosyal girişimcilere fırsat. Retrieved from https://www.istekadinlar.com/kadin-akademisi/koc-universitesi-nden-sosyal-girisimcilere-firsat-h1336.html 76 UNDP. (2017). Inclusive Business in the Philippines (pp. 19-21). UNDP. Retrieved from https://www.businesscalltoaction.org/sites/default/files/resources/BCtA_InclusiveBus_Philippines_FINAL%20WEB.pdf 77 Smith, R. (2018). The world's biggest economies in 2018. Retrieved from https://www.weforum.org/agenda/2018/04/the-worlds-biggest-economies-in-2018/ 78 United Nations Development Program. (2015). Inclusive Markets in Brazil: Challenges and Opportunities for the Business Ecosystem. (p.65) New York: UNDP. 79 PovcalNet. (2018). Retrieved from http://iresearch.worldbank.org/PovcalNet/povOnDemand.aspx 80 Ministry of Planning, Development and Management for the Republic of Brazil. (2017). Brazil Voluntary National Review. (p.13) 81 World Bank Open Data. (2018). Retrieved from https://data.worldbank.org/indicator/NY.GDP.MKTP.KD.ZG?locations=ZJ-BR 82 United Nations Development Program. (2015). Inclusive Markets in Brazil: Challenges and Opportunities for the Business Ecosystem. (p.31) New York: UNDP. 83 Bertola, L., & Williamson, J. (2017). Has Latin American Inequality Changed Direction?. New York: Springer. 84 United Nations Development Program. (2015). Inclusive Markets in Brazil: Challenges and Opportunities for the Business Ecosystem. (p.30) New York: UNDP. 85 United Nations Development Program. (2015). Inclusive Markets in Brazil: Challenges and Opportunities for the Business Ecosystem. (p.30) New York: UNDP. 86 North-eastern Brazilian over the age of 60 have 2.2 fewer years of schooling than South-eastern Brazilians. Ibid. 87 15.6% of Brazilians live in urban areas, yet they account for 46.7% of the extreme poor. Ibid. 88 Ibid. 89 OECD. (2018). Brazil Economic Survey. OECD. (p.8). Retrieved from http://www.oecd.org/eco/surveys/Brazil-2018-OECD-economic-survey-overview.pdf 90 United Nations Development Program. (2015). Inclusive Markets in Brazil: Challenges and Opportunities for the Business Ecosystem. (p.65) New York: UNDP. 91 OECD. (2018). Brazil Economic Survey. OECD. (p.8). Retrieved from http://www.oecd.org/eco/surveys/Brazil-2018-OECD-economic-survey-overview.pdf 92 Amsterdam Institute for Advanced Labour Studies. (2009). An Overview of Women’s Work and Employment in Brazil. Amsterdam: Amsterdam Institute for Advanced Labour Studies. 93 Guilherme Gerbelli, L. (2017). Brazil faces lost generation of young workers after recession. Retrieved from https://www.reuters.com/article/us-brazil-unemployment/brazil-faces-lost-generation-of-young-workers-after-recession-idUSKBN1AH327 94 OECD. (2018). Brazil Economic Survey. OECD. (p.10). Retrieved from http://www.oecd.org/eco/surveys/Brazil-2018-OECD-economic-survey-overview.pdf 95 PovcalNet. (2018). Retrieved from http://iresearch.worldbank.org/PovcalNet/povOnDemand.aspx 96 G20. (2015). G20 Inclusive Business Framework. (p.3). Istanbul: G20. 97 OECD (2019), Enterprises by business size (indicator). doi: 10.1787/31d5eeaf-en (Accessed on 18 February 2019) 98 United Nations Brazil Country Team. (2018). Mainstreaming, Acceleration and Policy Support (MAPS): SDG Action Plan Brazil Engagement Report

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99 Antúnez-de-Mayolo, C. (2012). The Role of Innovation at the Bottom of The Pyramid in Latin America: Eight Case Studies. Procedia - Social And Behavioral Sciences, 40, 134 – 140. 100 Reuters. (2019). Bolsonaro: Brazilian Oversight of NGOs Will Be Tightly Controlled. Retrieved from https://www.voanews.com/a/bolsonaro-brazilian-oversight-of-ngos-will-be-tightly-controlled/4732617.html 101 United Nations Brazil Country Team. (2018). Mainstreaming, Acceleration and Policy Support (MAPS): SDG Action Plan Brazil Engagement Report.