INCLUSIVE BUSINESS IN ASEAN


Inclusive business in ASEAN is a major force for inclusive and sustainable development. In 2017, the ASEAN member-states endorsed the ASEAN Inclusive Business Framework to institutionalize and mainstream inclusive businesses into the association’s economic community-building efforts. The framework highlights the importance of inclusive businesses in strengthening small and medium enterprises, and achieving the SDGs. It identifies four areas of action:

i.    Establishing conducive rules, regulations and definitions; 
ii.    Enhancing access to financial resources and providing financial incentives; 
iii.    Providing information and raising awareness; 
iv.    Strengthening the capacity of the BOP and of Inclusive Businesses.

The ASEAN Coordinating Committee for Micro Small and Medium Enterprises (ACCMSME) leads the promotion of inclusive business in ASEAN, as it links to the ASEAN Strategic Action Plan for Small and Medium Enterprise Development 2016-2025. The ASEAN Business Advisory Council also actively supports inclusive businesses.

In 2018, ESCAP and iBAN partnered to support governments to enhance the policy environment for Inclusive Business in South-East Asia. The partnership includes conducting research and analysis that helps inform policy design, fostering platforms to share knowledge and lessons learnt across ASEAN, and providing forums for member States to explore Inclusive Businesses opportunities.

ASEAN Member States have already started setting up specific policies, promotion institutions and programs to develop an enabling ecosystem for inclusive business. 
The Second ASEAN Inclusive Business Summit, held on 1 November 2019, organized by ESCAP and iBAN in partnership with the ASEAN Secretariat and Thailand as chair of the ASEAN in 2019, demonstrated increased level of activity, awareness and capacity among key inclusive business stakeholders in ASEAN.

In November 2019, during the 35th ASEAN Summit, the Heads of State of the ASEAN community reiterated the importance of inclusive business.
 

 

 

 

POLICY DEVELOPMENT FOR INCLUSIVE BUSINESS


In the right ecosystem, inclusive businesses will thrive, spur inclusive growth and provide relevant solutions to low income people. Governments can encourage the emergence and expansion of inclusive business models by establishing conducive rules, providing relevant information and raising awareness, building the capacities of the BOP and businesses, and enhancing access to finance.

In South-East Asia, governments have started setting-up specific inclusive business promotion institutions, policies and programs to develop an enabling ecosystem for inclusive businesses. In the Philippines, since 2017, registered IB models in the agribusiness and tourism sector are eligible for tax incentives. Countries such as Myanmar, Cambodia, Viet Nam, and Malaysia are currently considering policies that support inclusive business, through one or several of the following action areas:

1.    Fostering information and raising awareness about inclusive business 
2.    Coordinating action through IB focal points in government agencies and private sector associations 
3.    Creating registration or accreditation systems for inclusive business 
4.    Providing Technical Assistance (e.g. business coaching services) to help mainstream businesses develop inclusive business models
5.    Exploring suitable incentives to stimulate the adoption and growth of IB models 
Developing financial products for the needs of IBs and fostering investment linkages.
6.    Exploring the potential for prioritizing accredited IB companies in public procurement.
7.    Developing monitoring and reporting systems on the contributions of IBs to the SDGs.

Link to download ASEAN report