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 pyramid making them part of the value chain of companies as suppliers, distributors, retailers, or customers.
The term ‘base of the pyramid’ refers to the poor and low-income socio-economic group of society. In global terms, it currently comprises about 4 billion people living on less than US $6 to $8 per day depending on the region. People at the base of the pyramid often lack income opportunities and access to relevant and affordable goods and services, like water, food, healthcare or electricity.
Inclusive Business Features
In 2021, a set of leading global organisations came together to generate consensus on the high-level characteristics of inclusive businesses. They identified four key features of Inclusive Business:
- Engaging the base of the economic pyramid intentionally
- Pursuing financial viability
- Scaling the Business
- Measuring and Managing the Impact on the base of the pyramid