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Informal Retailer Inputs

The Challenge:

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]

The Opportunity:

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,–en/index.htm