Lessons from Community-Based Companies in Colombia

Summary

Community-Based Businesses (CBB) appear to be effective entities to generate long term impact in rural areas. Unlike traditional time-bound government and aid funded development projects, these businesses can potentially provide economically sustainable, long-term solutions to some of the most intractable challenges faced by SHFs and producer organizations. In addition to supporting livelihoods, CBBs potentially have other positive impacts, such as generating employment, strengthening local grassroot organizations and spurring local economic development.

This survey of seven CBBs established in Colombia between 2013 and 2022 sheds light on some key long-term success factors, such as the importance of having the high committed community backers, ensuring well-targeted initial grants, and well-designed ownership, management and governance structures. It also points to the potentially catalytic role of actors such as government, aid organizations, foundations, lenders and impact investors in providing targetted support to CBBs.

Although these are still early days for the CBB model, this model appears to be a promising way forward for more sustainable and inclusive economic development.

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