Creating Sustainable Local Enterprise Networks

By analyzing 50 cases of successful sustainable enterprise in developing countries, the authors developed a conceptual framework they call the Sustainable Local Enterprise Network model. Analysis of the 50 cases revealed that examples of successful sustainable enterprise in developing countries ofte...

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Bibliographic Details
Published in:MIT Sloan management review 2005-10, Vol.47 (1), p.33
Main Author: David Wheeler, Kevin McKague, Jane Thomson, Rachel Davies, Jacqueline Medalye, Marina Prada
Format: Article
Language:English
Subjects:
Business models
Business networking
Case studies
Developing countries
Entrepreneurs
Grounded theory
LDCs
Low income groups
NGOs
Nongovernmental organizations
Private sector
Qualitative research
Strategic management
Sustainable development
Textiles
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Summary:By analyzing 50 cases of successful sustainable enterprise in developing countries, the authors developed a conceptual framework they call the Sustainable Local Enterprise Network model. Analysis of the 50 cases revealed that examples of successful sustainable enterprise in developing countries often involve informal networks that include businesses, not-for-profit organizations, local communities and other actors. These networks can lead to virtuous cycles of reinvestment in an area's financial, social, human and ecological capital. Successful SLENs, the authors found, require at least one business enterprise to ensure the network's financial sustainability and serve as its anchor; however, that anchor role may be played by a cooperative or a profitable social enterprise launched by a non-governmental organization. While multinational corporations were sometimes part of the SLENs studied, entrepreneurs, nonprofits and sustainable local businesses were more common. Using a number of examples from their research, the authors describe how SLENs operate.
ISSN:1532-9194