Bangladesh Social Enterprise Project - Bangladesh Enterprise Institute

4.2 Implications for local and multinational companies
Large companies have the opportunity to secure lower input prices, strengthen reputation and
contribute to economic development by creating backward linkages with social and
conventional entrepreneurs in Bangladesh. But many of these opportunities are being missed.
Entrepreneurs may have strong products and services to offer, but because they lack business,
presentational and language skills and social networks, they may be unable to credibly market
to potential business customers. Major local and multinational companies, in partnership with
banks and micro‐finance organisations, should apply some of their CSR efforts to help
entrepreneurs overcome the barriers to doing business with them, and should encourage their
procurement departments to develop local suppliers. The following example of BP in Azerbaijan
gives an example of what can be done: “We seek to support the development of local suppliers
through training and financing programmes, building skills and sharing BP’s internal standards
and practices as appropriate. This enables more local businesses to participate in BP’s supply
chain. Sourcing supplies from local businesses help us avoid the need to ship supplies from
overseas and boost the local economy. However, while local firms can often provide nonspecialist
supplies such as facilities management, they are often not sufficiently experienced to
provide more advanced components and services. This is why BP works among local economic
communities to build the skills and capacity needed in a strong supply base. A three‐year
enterprise development and training programme is under way to help suppliers meet
international oil and gas industry standards. Since the programme’s inception, more than 150
local small‐and medium‐sized businesses have undergone assessments. As well as microenterprise
programmes, we supported a $15 million supplier finance facility that offers easier
access to finance for suppliers and service companies.” 6
4.3 Implications for donors, social investors and think tanks
Donors, social investors and think tanks can play a powerful convening role in giving social and
conventional entrepreneurs access to contacts (particularly with large companies, investors and
6 http://www.bp.com/sectiongenericarticle.docategoryId=9006626&contentId=7055242 accessed 17 February
2010.
BSEP: Policy Brief
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