Nongovernmental organizations, business, and the management of ambiguity

Partnerships between business and nongovernmental organizations (NGOs) that seek to promote fair trade between small scale producers in poor countries and Western consumers are opening up new and potentially challenging approaches to development in terms of income generation, local capacity building, and alternative sources of NGO funding. However, such ventures face a distinctive set of problems, many of which arise because these ventures are located uncomfortably on the boundary between the non-profit and the business sectors. The concept of sectoral ambiguity helps to explain observed problems with confused expectations, management tensions, and lack of sustainability. Strengthening these partnerships will require greater transparency, market diversification, long-range planning, and the building of a set of more realistic expectations.