A market system is the network of buyers, sellers, intermediary actors and market regulators that come together to trade a given product or service.
The Inclusive Markets (IM) approach is a development approach which encourages a well-connected and efficient market system to bring about sustainable change for poor people through partnership with the local private companies and public institutions. This approach is also known as Market Systems Development and Making Markets Work for the Poor (M4P).
An intervention is specific action or group of actions focused on tackling an identified constraint.
Nepali smallholder farmers are held back by a lack of access to inputs (quality seeds, feed, irrigation facilities), insufficient information (on cultivation practices, post-harvest techniques, application of crop protection inputs) and poor links to markets or distribution channels.
Sahaj identifies private sector companies who have incentive and enough capacity to take part in interventions. Once partnered, Sahaj collaborates with the company through financial support and provides guidance on business practices that are beneficial to both farmers and the company.
Because of the intervention’s success, involved stakeholders are likely to adopt the changes as part of their long-term business model as each stakeholder has an incentive to engage long after the project ends. Other companies may duplicate the business model which may allow more farming households to increase their own profits.
Certain companies are interested in expanding their service area. However, they are uncertain regarding what the demand is in rural districts and how profitable it would be to operate there. The interventions will help the companies navigate expansion into new markets as the consumers and market demand will have been identified by Sahaj.
Partnerships with the public sector are based on the sector’s interest, mutual working areas, the relevance of the activities that is planned or is being carried out. These activities include a fundamental role in policy making, technical trainings and service provision.
The rationale for working in chosen sectors is based on:
Any farmer living on less than $2.50 per-day per-household.