Glosary


Hover the letters to find the term you're looking for:

A

Alternance training:
Pedagogical system with a permanent interaction between community and school where the different social and economic agents involved in the learning process and the development of the community participate in an active and responsible way.

B

Base of pyramid:
The theory of the Base of Pyramid (BoP), formulated by Prahalad and Stuart, proposes breaking away from the traditional image of poverty. It sets out the hypothesis that the population formed by the 4,000 million people who survive with less than four dollars a day, can improve their quality of life and form a potential consumer market when companies reconsider their business models. To capture this market niche the authors invite companies and entrepreneurs to reconsider their way of seeing people with fewer resources, seeking new business models that bear in mind the characteristics of this market. It is vital to understand features such as the fact that the majority of this enormous group lives in the informal economy in rural areas, they lack basic services and do not usually have access to cash immediately; and adapt their offers to it.
Base organisations:
Most basic form of organisation in a community. They are organisations with social or political character close to the community they serve. The base organisations are, in turn, assisted by other larger organisations, such as regional or national NGOs.

C

CIVIL SOCIETY ORGANISATION:
It is used to refer to any of the wide range of on-profit, non-governmental and formally registered organisations, as well as community-based associations outside the sphere of the public and private sector. In Ecuador, this definition will include the legal figures of corporation and foundation. They are key players in democratic governability, fair development and inclusive growth.
Codevelopment:
"It is based on the central idea that people emigrating from developing countries to more prosperous ones can actively contribute to the development of both their communities of origin and host societies, in economic, social and cultural areas"
Community loan company:
Unregulated organisation specialised in financial services. It is peculiar in that it is composed of the members of the community who organise themselves to offer loan services to their partners.
Community tourism:
Tourism management model based on the ownership and self-management of natural and cultural resources of the native indigenous populations, under an approach of social commitment, respect for the environment and equal distribution of profits.
Company incubator:
A project or company aimed at the creation or development of small enterprises or micro-enterprises and giving them support in their early stages. Usually the support provided to new entrepreneurs is related to business management and access to facilities and resources at a low cost or even free.
Corporate Social Responsibility (CSR/BSR):
Also called business social responsibility (BSR). An active and voluntary contribution from companies to social, economic and environmental improvement, usually aimed at improving their competitive situation and the added value they provide to the group of agents with whom the company operates.
Corporate Social Responsibility for Development (CSR + D):
Initiatives within the companies CSR strategy aimed at actively contributing to the fight against global poverty and improving the quality of life in underprivileged communities in developing countries.
Corporate volunteering (CV):
Volunteering performed by the company employees and which, in one way or another, is backed by the company. CV is a direct active action and requires interacting with both NGO and society.

F

Food security:
A situation where "all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life".

G

Gender:
It relates to the different roles, rights and responsibilities of men and women, and to the relation between them. It makes reference to the way in which the qualities, conducts and identities of both sexes are determined by the socialisation process. It generally associates inequality, discrimination and violation of human rights of women.
Global Corporate Volunteering (GCV):
Is promoted by companies and their employees and implemented in developing countries, in order to improve the living conditions of groups with limited resources. These initiatives are one of the best tools for transfer of know-how of companies and their professionals to these areas.

I

Inclusive businesses:
Business initiatives which, without losing sight of the final aim of generating profit, contribute to eradicating poverty by incorporating people with limited resources as consumers or workforce (employees, suppliers, distributors, etc.).

M

Micro-enterprise:
Informal company largely established in most cases as a way of creating income for a family group with limited resources. It is characteristic of developing countries since it is the way of life of most of the population that lives in the informal sector of the economy. It can be rural or urban.
Microcredit:
Small loan granted to people with low incomes and no access to the traditional banking system. They are usually small quantities with frequent repayments to be returned in short periods. The previous guarantees are replaced by others adapted to the possibilities of each person (solidarity, pledge on certain goods, guarantee, etc.).
Microfinance:
According to the CGAP, microfinance is defined as an initiative which "offers poor people access to basic financial services such as loans, savings, money transfer services and microinsurance. People living in poverty, like everyone else, need a diverse range of financial services to run their businesses, build assets, smooth consumption, and manage risks".
Microfinancial institutions(MF):
According to the CGAP, MFI are defined as "Different types of financial services providers for poor people have emerged - non-government organisations (NGOs), cooperatives; community-based development institutions like self-help groups and credit unions; commercial and state banks; insurance and credit companies; telecommunications and wire services; post offices; and other points of sale."
Microinsurance:
Insurance designed to protect from the different risks groups with limited resources are exposed to in their daily activity and in their different sources of income.

P

Popular credit funds:
Funds created with members' contributions and managed autonomously. The funds are used for granting loans to the members of the fund on rotation basis and without any guarantee.
Production chains:
Traditional and spontaneous organisation of the different agents of economic activities ranging from primary rural production to the end consumers of a product, whether it is a product or a service.
Public-private alliance:
Voluntary and collaborative relationship among the public and private sectors and NGOs, where all the participants or partners agree to work together to achieve a common development and share risks, responsibilities, resources, skills and benefits.

R

Resolving fund:
It is an amount of money allocated to start the productive operations of a project, which will serve to purchase consumables for the production phase of a project and then this same thing will be used for a second period. This fund, as its name indicates, shall revolve to create gains and will be invested to achieve greater use in the enterprise.

S

Savings and credit cooperatives:
Savings and credit cooperatives offer their members much more than financial services all over the world. They give them the chance to be the owners of their own financial institution and create opportunities such as that of starting a new business, building a house for their families and educating their children. In some countries their members are trying for the first time the taste of making democratic decisions in their savings and credit cooperatives. Savings and credit cooperatives are democratic financial cooperatives that belong to their partners, they exist to attend to their members and communities and are safe and practical places that allow access to accessible financial services.
Social entrepreneur or enterprise:
Enterprises with essentially social aims, whose surplus is mainly reinvested for this purpose in the community, instead of being driven by the need to maximise profits for shareholders and owners.
Social innovation:
In 1934, the Austrian economist Joseph A. Schumpeter defined innovation as "first introduction of a new product, process, method, or system." His definition highlights the dual nature of innovation: it is both the result and the methods used to achieve it, something that traditional research has forgotten by focussing on one aspect or the other.
Social performance in microfinance:
Compliance with the social mission of the Microfinancial Institutions by improving transparency and incorporating impact measurement indicators of the microfinancial programs.

V

Value chain approach:
Integral analysis model of the context, agents and roles they play, to give way to an intervention (which may vary according to the conclusions of the analysis), seeking to add sustainable economic and social value for the people forming the poorest links and who have great potential for improving the beneficial impact, since it is produced with support to the producing families with limited resources.
Value chains:
Working system that makes it possible to analyse a production chain from the standpoint of added value generated by each economic agent in the production of a product or service. They are aimed at identifying the commercial opportunities of a production chain and maximising benefit for the poorest people.