Inclusive Business: A Market-driven Approach to Alleviating Poverty

LightCastle Analytics Wing
December 25, 2016
Inclusive Business: A Market-driven Approach to Alleviating Poverty

In 2008, the term was first officially introduced in an UNDP-commissioned report titled “Creating value for all: strategies for doing business with the poor”. The report emphasized on business which are both commercially sustainable and engaged the poor in it’s core operations. Through inclusive business, an entrepreneur can either serve the poor as customers or can include the poor as producers, employees and business owners.

Therefore, they have two distinct characteristics-

  • they are commercial viable (generating profit as well as being sustainable)
  • they incorporate the BOP market somewhere in the company’s value chain. In the 2008 report, the target segment was described as having less than USD 8 of income per day PPP (equavalent of USD 2.67 in Bangladesh). This constitues about 4 billion people around the world living in more than 80 countries.

Types of inclusive business?

Inclusive business can range from agriculture to housing to utility service.

Types of inclusive businesses

International Case Studies

Inclusive business integrates the BOP population as part of the value chain of companies´ core business as suppliers, distributors, retailers, or customers. Some successful inclusive businesses around the world include-

Examples of inclusive businesses globally

Inclusive Business Cases in Bangladesh

In Bangladesh, Jita and Pabna Meat are two key examples of Inclusive businesses.

Examples of inclusive businesses in Bangladesh

Impact Measurement Tools:

Impact measurement tools

Some of the common frameworks for assessing impacts of Inclusive businesses include:

Benefits of Inclusive Businesses:

Inclusive business should promote sustainable development in all its dimensions – economic, social and environmental.

Benefits of inclusive businesses

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WRITTEN BY: LightCastle Analytics Wing

At LightCastle, we take a systemic and data-driven approach to create opportunities for growth and impact. We are an international management consulting firm which creates systemic and data-driven opportunities for growth and impact in emerging markets. By collaborating with development partners and leveraging the power of the private sector, we strive to boost economies, inspire businesses, and change lives at scale.

For further clarifications, contact here: [email protected]

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