Business-to-Business Networking Marketplace Presenter: Aidan Coville with Francisco Campos (WB), Sabrina Roshan (WB) and Sandra Sequeira (LSE) DIME-FPD Global Workshop, 6 – 11 June 2011

Overview PPPPP of the B2B

The Problem South Africa The World

The Problem It is difficult for companies to find suppliers, and screen them for quality. This increases the cost of products and services (inefficient matching) while reducing business opportunities for smaller, female-owned firms How do we create a credible and almost costless link between small and medium to large firms? How do we generate trust for medium and large firms to do business with small firms, particularly women-owned?

Proposed Intervention Link small firms (suppliers) to small, medium and large firms (buyers) through an online and SMS accessible marketplace KEY New Features Updated Directories of suppliers Job postings and quotes by sector, location, price range Shortlisting of potential suppliers to request more information Feedback rating system: feedback on performance Recommendation system: buyers recommend suppliers Mapping of business relationships

Proposed Intervention Link small firms (suppliers) to small, medium and large firms (buyers) through an online and SMS accessible marketplace KEY New Features Updated Directories of suppliers Job postings and quotes by sector, location, price range Shortlisting of potential suppliers to request more information Feedback rating system: feedback on performance Recommendation system: buyers recommend suppliers Mapping of business relationships

Examples of Features Directories

Job Postings and Request for Quotes :

2195

Feedback and Rating System :

Recommendation System

Mobile Access: Quotes Quote requested (#Q6502): 60-seater bus hire on 8 June. Copacabana to Rio Scenarium return trip. Company: World Bank Contact: Sylvia Reply Quote #Q6502 Cost: R$ 350 Comments: Only 50-seater bus available Contact: Natasha

Mobile Access: Feedback Order #O3201 Feedback: Comfortable, on time and flexible. Thanks! Punctuality: 5/10 Price: 7/10 Communication: 6/10

Networking Marketplace IT firm World Bank Local Bank Local Chamber Advisory role in marketplace Development Impact Evaluation Recommendatio ns for upgrade and nationwide scale-up Advisory role in marketplace Development Impact Evaluation Recommendatio ns for upgrade and nationwide scale-up Marketing of the marketplace Hosting the marketplace Showcase for potential scale- up Marketing of the marketplace Hosting the marketplace Showcase for potential scale- up Develop Marketplace Marketplace Maintenance Develop Marketplace Marketplace Maintenance Sponsor the Marketplace Development Provide supporting role in marketing Access to business lists Sponsor the Marketplace Development Provide supporting role in marketing Access to business lists Pilot Plan (in KwaZulu Natal Province)

Marketing and selection Pool of suppliers (10,000) Pool of buyers General marketing awareness campaign Targeted marketing: demos, brochures, firm visits, workshops, survey Personal support: Visits / Demos Identification of needs Updates to the marketplace Presentation of features Buyers registration (250 with gender information, 250 without) Marketing and selection Baseline survey Upload participants into system Randomly phase in new features Follow-up survey List of participant suppliers (1,500) Initial screening and random selection of pilot participants Similar group of not participants (1,500) Baseline survey Follow-up survey

Overcoming Information Asymmetries 125 NO OWNER GENDER INFOCOMPLETE INFO FEEDBACK AND RATING SYSTEM NO FEEDBACK/RATING BUYERS

Questions Can an intervention like this improve market access and support the development of traditionally marginalised SMEs? Is market access a more binding constraint for female firms? What information (including gender and race) influences buyers transaction decisions and do these depend on knowledge regarding the quality of the suppliers?

The Results Watch this space...