Business Model

BUSINESS MODEL

Business Model:  the Profit-Making Model

In the BIOXPARC Marrakech project, the private company (Private equity investments) provides funding for the different stages of project development, with the participation in capital risk of investment funds, banks and leasing companies. To facilitate and guaranteed investors’ access to capital risk, is being created a real estate investment fund (OPCIOrganismes de Placement Collectif Immobilier) based on the regulations imposed by Moroccan’s law.

 

Advise government’s policies, business strategies, and civil society action.

BIOXPARC use holistic approach to advise government’s policies, business strategies, and civil society action: test projects with partners, companies, and government agencies to build a strong collaborative base.

Then, BIOXPARC work to deliver innovation on the ground of biotechnologies that improves people’s life and sustains a healthy environment.

The different Business Models for BIOXPARC implantation

 The business models for BIOXPARC Network are heavily dependent on the initial conditions in the host environment (political, economic, social and technological conditions) but also on a proper identification and management of the prerequisites at project on set.

A thorough estimate of the BIOXPARC implementation costs is imperative. This will be based on an inclusive approach targeting all stakeholders for an accurate identification of the needs in terms of infrastructure, hardware, human resources, training, communication, etc.

The aim is to have a model likely to ensure equilibrium in the funding of the three sequences of the project: implementation, operation and upgrade of the BIOXPARC project.

In BIOXPARC  Platform 5.0  have been identified 3 business models:

 

 

BUSINESS MODELS

FUNDING  OF THE

IMPLEMENTATION

FUNDING FOR THE OPERATION

FUNDING FOR UPGRADES

Non-charge model

Donors

Government

Donors/

Government

Government

Government

Government

Profit-making model

Private sector

Ad hoc entity

Ad hoc entity

PPP model

Donors/

Government

Ad hoc entity

Ad hoc entity

  

Non-charge Model

This model is applied in cases where the funding for the implementation, operation and evolution of the BIOXPARC is entirely provided by the Government or secured from donors.

What motivates a Government to provide funding for the different stages of a BIOXPARC Project is the resolve to improve the business environment through the facilitation of trade-related formalities and the proper management of the BIOXPARC.

The major risk in a strong involvement of a Government in the funding of all stages of a BIOXPARC Project lies in the possible absence of adequate resources to ensure its upgradability particularly in developing countries and Least Developed Countries.

This situation can adversely impact the performances of the BIOXPARC and hence, the option to associate the private sector and donors can be envisaged.

Very often, donors support the implementation of the BIOXPARC and, the Government takes over to provide funding for its operation. However, donors can come on board ultimately to support the BIOXPARC upgradability needs.

PPP – Public Private Partnership Model

This model concerns mainly the BIOXPARC implemented as part of a PPP that brings on board the Government and the private sector. This PPP model is limited to the management and steering of the project. The logic of stepping up the competitive foreign trade environment is at the heart of this mutually beneficial partnership.

Generally, BIOXPARC services established under PPP are payable. But the tariffs are often negotiated or approved, the objective being to ensure equilibrium in the operation.  

The PPP model presents the advantage of being complementary to the other types of funding available as it gives the latitude to call on to the Government or donors, if need be, depending on the opportunities or the context.

Profit-making Model

When the private sector provides funding for the different stages of the BIOXPARC Project, it integrates its prime motivation which is the quest for profit, hence the option to offer payable services.