Business Ecosystem
The forest economy is characterised by what economists identify as a low-level equilibrium trap, where path dependence in market structures and severe diseconomies of scale at the primary level constrain productivity and value capture. IoFE’s business ecosystem intervention addresses these fundamental market failures through the systematic creation of aggregation economies that enable communities to capture value locally while establishing formal market linkages with industrial value chains.
Furthermore, sustainable supply chain development makes forest-based raw materials visible and traceable from source to market, addressing the first-mile invisibility that hinders fair value distribution and responsible sourcing verification. Innovative financing models recognise that forest-based enterprises require tailored financial instruments, considering the capital constraints faced by collectors of SFPs and the long-term investment cycles necessary for sustainable forest management. Management units provide the organisational infrastructure required to achieve economies of scale, moving beyond individual collection to legally incorporated community enterprises capable of engaging in formal markets and investing in appropriate technology.
Processing interventions introduce mechanical and digital technologies that enable value addition at the local level. Even simple, decades old technology can significantly increase returns to labour when applied at an appropriate scale. Strategic operational planning ensures enterprise viability through robust business model development while market linkage programmes establish direct partnerships with industry buyers—reducing market uncertainty and enabling long-term investment planning.
We’re always open to partnerships, ideas, and conversations. Reach out to explore collaboration or to learn more about our work.
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