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What is inclusive business?

What-is-inclusive-business

We think of inclusive business know-how as the practical knowledge you need to get things done, as opposed to know-what, which is about facts. Click on our know-how topics below to take a closer look at what models, strategies and solutions are emerging in inclusive business.

BUSINESS - WITH A DIFFERENCE

BUSINESS-WITH-A-DIFFERENCE
Inclusive business is commercial business. It is not an afterthought or a remedy like philanthropic activity or corporate social responsbility (CSR) programmes.

Inclusive business is a way of achieving typical business objectives such as growth, supply security and market expansion.

But at the same time inclusive business models are often highly innovative solutions that reach out to people at the base of the global economic pyramid and enable them to increase their incomes and improve their livelihoods.

WHY ARE BUSINESSES INTERESTED?

Inclusive business can spur innovation,
develop more effective operations in emerging
markets, and ultimately open up new sources of profitability.

Low income markets are large and still relatively untapped. Penetrating these markets is a challenging endeavour.

But with 2.5 billion potential consumers, agricultural suppliers and distributors, companies that engage with this massive market stand to make significant commercial gains and become market leaders.

WHY ARE DONOR AGENCIES INVOLVED?

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Inclusive business can deliver sustainable solutions that alleviate poverty at scale.

When a pro-poor intervention depends on grants, its scale is limited by funds and donor decisions.

When a pro-poor opportunity generates profit for a business, it can grow, evolve, and adapt in new markets.

With the right entrepreneur, commercial impetus can reach thousands, if not millions of disadvantaged people in the developing world.

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