Reflecting on inclusive business - progress and what is next?

What do we mean by ‘inclusive’? An unwelcome but important question is posed by Harvey Koh, Managing Director of FSG, as he reflects on 11 years wrestling with inclusive models in Mumbai, he asks: 'What if an inclusive business model harms low-income people with unfair terms or discrimination? His answer: not blissful ignorance, but focus on building inclusive market systems, not just stand-alone inclusive enterprises.

Joost Guijt focuses on 'inclusive agribusiness' and calls for more real evidence on how models work, to ensure smallholders really gain and businesses have enough information to take risks. Looking ahead to the ongoing transformation of smallholder agriculture, he also wants to see inclusive business linked to transitions out of primary production.

Armin Bauer draws on years crafting and investing in inclusive business deals inside the Asian Development Bank. Lack of clarity on social impact is one of the two big gaps he identifies, calling for a clearer focus on the bottom 40%, alongside more sophisticated shaping of deals.

The policy context and role of government is highlighted by Ndidi Nwuneli, a social entrepreneur and investor in Nigeria. AACE Foods is an example of a business that is achieving signficant scale, sourcing from over 10,000 smallholders, while tackling malnutrition. But Ndidi highlights 2 key policy actions needed to unleash local sourcing at scale: incentives and infrastructure.

Dr Iffat Zafar Aga, founder of Sehat Kahani, gives an upbeat assessment of how technology has unleashed a raft of inclusive businesses in Pakistan, but a candid view from personal experience of the collision between requirement of entrepreneurs and norms for women in Pakistan. More digital, fewer barriers are the way forward.

KC Mishra is founder of eKutir, which provides 'soil to sale' services to farmers, to create a connected non-exploitative agricultural market. In our exclusive interview, KC argues that such social enterprises can provide a key piece of the jigsaw going forward; partnering with farmers, designing around their needs, and partnering with corporates who lack such ability to differentiate and accomodate.

Progress so far in Nigeria

So far in Nigeria, the term “inclusive business” is not well known since most have come into it quite by accident.

Zahid Torres-Rahman, Founder and Director of Business Fights Poverty, argues that delivering the promise of inclusive business means taking it deeper into corporate, into commercial and operational teams. And where necessary, jettisoning the language of inclusive business. Alongside this deepening, wider and more agile partnerships are needed for scale.

It is not the global but the national companies that are flagged by Markus Dietrich, senior advisor within the Inclusive Business Action Network. His priorities for the future include more support to national medium/large companies, clearer linkages with SDGs and alignment with the fast-emerging impact investment market. He also gives a great update on the growing policy support for inclusive business, seen for example in Filipino Government legislation and adoption of principles and commitments by ASEAN, APEC and G20.

Finally, our Editor's Choice flag up the top blogs of the year, with the Hub team explaining why they are our favourites.