“Co-creation” Business Models Between the Private, Social and Public Sectors Could Reduce Poverty in Belgium, According to Ashoka and Accenture Study
New business models leveraging “co-creation” between the private, social and public sectors could help fight poverty in Belgium, according to a new study by Ashoka, the leading global network of social entrepreneurs, developed in collaboration with global technology and consulting company Accenture.
Citing alarming statistics on poverty in Belgium — such as the fact that the 15 percent of citizens who live below the poverty threshold spend 75 percent of their income on primary needs such as housing, utilities and food, and that 7.4 percent of the population postpones medical treatment for financial reasons — the study concludes that the best way to fight poverty is through collaboration between the private sector, social entrepreneurs and public services. By sharing assets and capabilities to develop market innovations, “co-creation” would enable companies to develop new offers that respond to the specific needs of low-income citizens.
Ashoka believes that the “co-creative” approach has the potential to respond to current societal challenges by capitalizing on the assets of different sectors and by having organizations transcend their intersectoral compartmentalization to turn existing problems into opportunities. The co-creative approach would make it possible, for example, to refurbish houses that would otherwise not be taken care of or to share cars that would otherwise not be used.
“If every company participates or co-creates projects with social entrepreneurs and the public service, it would benefit everyone in both the short and long term,” said Virginie Samyn, representative for Ashoka in Belgium. “The social entrepreneurial approach transforms problems into opportunities and could be an extremely effective way to tackle current societal challenges.”
Examples of co-creation include:
- The non-profit organization Gymsana helps decrease the negative effects of a sedentary lifestyle and ageing for the elderly and disabled people through an adapted physical activity program. The positive impact on reduced public health spending has been proven. Furthermore, Gymsana partnered with insurance and food companies to reach as many people as possible.
- SIIN, the Scientific Institute for Intelligent Nutrition, founded by Ashoka social entrepreneur Geneviève Moreau, introduced the “intelligent nutrition” label and wants to reach out to all the players in the food business to make nutritious and healthy food accessible to all. She helps catering and agro-food companies develop a competitive advantage by bringing new resources to the food sector.
- Ignace Schops, general manager of RLKM and a social entrepreneur at Ashoka, brings environmental associations, habitants, companies and the public authorities together to develop a form of ecotourism that is beneficial for both the environment and the inhabitants of the regions.
“Just like Ashoka, Accenture believes in the power of partnerships between private and public sectors,” said Olivier Gillerot, country managing director of Accenture Belgium. “A tailor-made collaboration for helping solve societal issues, co-creation is also a key element of our Skills to Succeed initiative, which is equipping 3 million people with the skills to get a job or build a business.”
Ashoka invites all companies to seize this opportunity and to creatively analyze the market possibilities that can be developed for the specific needs of “low-income earners.”
A view on poverty in Belgium:
- 15% of Belgians live below the poverty line
- The “low-income earners” spend on average 75% of their income on primary needs (e.g. housing, energy, food, insurance)
- The “low income” population (1.7 million Belgians) spends €11 billion on an annual basis
- A household with a low income spends on average €20 per day per head to live with the following main expenses: housing – €6 – €3, transportation – €2, healthcare – €2, heating
- 184.000 Belgians are still waiting for social housing
- 17% of the Belgian population do not have means to buy healthy food. As a consequence, 500.000 people suffer from malnutrition
- 7,4% postpone medical treatment for financial reasons, and the “vulnerable” population has a life expectancy 5,5 years lower than the average
- 80.000 families in Belgium have outstanding energy bills
