ABOUT INCLUSIVE BUSINESSES
Inclusive businesses provide goods, services, and livelihoods on a commercially viable basis, either at scale or scalable, to people living at the base of the economic pyramid (BOP) making them part of the value chain of companies´ core business as suppliers, distributors, retailers, or customers.
To serve the low-income market and make profit at the same time, inclusive companies must innovate.
While many firms work with or sell to the base of the economic pyramid, only few provide them with relevant solutions to address poverty.
TARGETING THE BOP
Inclusive business models are consciously designed to provide solutions to the income and access problems of poor and low-income people at the BOP.
In South-East Asia, the BOP market is estimated to be around 349 million people, or 56 per cent of the population. Together, they have a purchase power of USD 220-320 billion. This represents a sizeable market opportunity.
Inclusive business models may not exclusively focus on the BOP but they always have specific features designed to target the BOP.
TRIPLE WINS OF INCLUSIVE BUSINESS
Inclusive businesses models create multi-faceted wins for society:
- For the poor, low-income and vulnerable populations: as they create additional income generation opportunities and/or expand access to essential goods and services.
- For companies: as they offer business and investment opportunities.
- For governments: as they help create jobs and address essential needs of low-income and vulnerable people.