The informal sector is a major source of livelihoods, particularly for microentrepreneurs: 85% of entrepreneurs in developing economies are in the informal sector, and many of them are low-income microentrepreneurs whose profitability is constrained by limited leverage in negotiations with suppliers.[i]
GP funds aim to improve net income and quality of life of informal retailers living in poverty by investing in partners who provide them with low-cost, quality inventory through efficient distribution channels.
Who is Served:
Informal retail microentrepreneurs living below $5.50 PPP/person/day in primarily urban and peri-urban areas
What is Delivered:
Microentrepreneurs must receive quality, low-cost inventory through highly efficient, convenient distribution channels
Why it is Impactful:
Household net income increases significantly due to:
- Inventory cost savings;
- Cost savings associated with more convenient distribution channels; and/or
- Consistent access to quality inventory.
Retailer productivity and/or quality of life may also improve due to decreased time spent sourcing inputs.
[i] International Labour Office, Women and Men in the Informal Economy: A Statistical Picture, 2018, https://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_627189/lang–en/index.htm