At the same time, these companies benefit more from the development co-operation activities, for example if these activities involve training and organising the smallholders. Companies with products to sell, on the other hand, find that in the partner countries they encounter stiff competition from providers from other countries who are often able to offer their products at lower prices; in addition, the groups targeted by development co-operation are often not the typical clientele of the private-sector companies.

Private-sector involvement must never be at the expense of the target groups of development co-operation

 

The ultimate aim is to develop inclusive business models that benefit, inter alia, the poorer smallholders who are the target group of development co-operation, since this does more to reduce poverty. However, a frequent obstacle here is the fact that smallholders lack the financial resources needed in order to make use of the innovations on offer.