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.*
The Opportunity
GP and its affiliated 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.
* 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