Sustainable Business Models for Informal Charcoal Producers in Kenya

Doris Mutta, Larwanou Mahamane, Chemuku Wekesa, Godwin Kowero and Anders Roos
Additional contact information
Doris Mutta: African Forest Forum, 00100 Nairobi, Kenya
Larwanou Mahamane: International Crops Research Institute for the Semi-Arid Tropics, 8001 Niamey, Niger
Chemuku Wekesa: Taita Taveta Sub-Regional Research Centre, Kenya Forestry Research Institute, 80304 Wundanyi, Kenya
Godwin Kowero: African Forest Forum, 00100 Nairobi, Kenya
Anders Roos: Department of Forest Economics, Swedish University of Agricultural Sciences, SE-750 07 Uppsala, Sweden

Sustainability, 2021, vol. 13, issue 6, 1-17

Abstract: The sustainable business model (SBM) concept requires enterprises to integrate sustainability aspects in their planning and operations. Although 60% of the global working population make their living in the informal sector mostly in low-and middle income countries, the potential for SBMs has rarely been analyzed for this category. This study explores the SBMs of informal charcoal-producing enterprises in coastal Kenya. It describes key business-model components: value proposition, value creation and delivery, and economic value capture. Impact and dependency on sustainability-related indicators were also studied. Data were obtained through individual interviews, focus-group discussions, and workshops for charcoal producers and other relevant stakeholders. Findings demonstrated that charcoal enterprises, despite their informal status, adopt elaborate business models. The incomes positively affect several Sustainable Development Goals (SDGs) by reducing, if not eradicating, poverty and supporting basic livelihood needs. Examples of negative impacts on some SDG include the activity’s contribution to forest degradation. Feedback impacts, where SDG status influence the informal enterprises’ opportunities were also identified. The SBM model contributes to the development of a balanced sustainability transition of the charcoal sector. We suggest further analyses of the role of informal enterprises in the bioenergy sector for sustainable development and how their SBMs could be improved.

Keywords: bioenergy; business strategy; green business; livelihoods; value chain (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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