How can the newly launched Inclusive Business Features support the growth of Inclusive Business worldwide?

Building on the G20 definition, the Inclusive Business Features provide a structured set of features, defining the distinguishing characteristics of businesses that engage the base of the economic pyramid. They enable companies, investors and policymakers to recognize how inclusive businesses are a tangible answer to the opportunities presented by the Sustainable Development Goals and allow them to consider what it would take to better develop, support and enable such businesses.

The development of these features was a truly collaborative effort. They were finalized with the input of leading global organizations, which have come together to generate consensus on the high-level characteristics of inclusive businesses.

We asked key stakeholders involved in their development why launching the Inclusive Business Features is important now, and how it can support the growth of Inclusive Business in the future. Here are their insights:

Matthias Altmann, European Commission - DG International Partnerships

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Why do you think the development and launch of the Inclusive Business Features is important now?

We see demands today increase for clear criteria on what constitutes a sustainable investment, and how businesses can measure and demonstrate their contributions to the SDGs. The IB Features are a timely response to these demands by clarifying what inclusive business is and how it distinguishes from other forms of business.

In your opinion, how can the Inclusive Business Features support the growth of Inclusive Business worldwide?

The IB Features clarify for the first time what the characteristics of inclusive businesses are. They set a standard by which investors, governments, donors, and other stakeholders can identify inclusive businesses and make informed decisions about supporting and working in partnership with them. The features are therefore a useful tool to advance the recognition and growth of inclusive businesses worldwide.

"The IB Features clarify for the first time what the characteristics of inclusive businesses are."

Kathy Mignano, International Finance Corporation

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Why do we need a consensus on the features of Inclusive Business?

Companies and investors are increasingly incorporating inclusive practices to pursue growth opportunities while boosting development impact. Inclusion, however, can have different meanings for different stakeholders. That’s why a consensus about the basic features of inclusive business is key. It creates a common understanding, so all stakeholders can speak the same language.

Why are the Inclusive Business Features important now?

Covid-19 has exacerbated the global challenges of poverty and inequality, and the low-income people at the base of the economic pyramid are more vulnerable than ever before. People at the base of the pyramid are also among the most at-risk due to climate change. The features outline the distinguishing characteristics of an inclusive business model, making it easier for businesses to succeed in their efforts while encouraging more stakeholders to get involved.

 "Companies and investors are increasingly incorporating inclusive practices to pursue growth opportunities while boosting development impact."

Fernando Casado Cañeque, GLOBALCAD

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Why do you think the development and launch of the Inclusive Business Features is important now?

I think IB Features is important because it is helping align and organize a lot of the available knowledge, methodological approaches and tools in an integrated manner so practitioners from all over the world can access them and work in a more synergic way; broadening our understanding as well as our outreach and thus, the impact we generate on society. As practitioners, we have been working in silos for too long, reinventing the wheel too often and generating too many overlaps on how we use knowledge to generate constructive change. The IB Features are certainly oriented to change this.

In your opinion, how can the Inclusive Business Features support the growth of Inclusive Business worldwide?

I think the work IB Features is doing in order to support the growth of inclusive business worldwide is essential. Promoting the best available tools; the methodologies that are working; highlighting the case studies that have achieved transformational change; and giving voice to the entrepreneurs that are struggling to promote their IB product and service so it can upscale and replicate its impact is a must and its being done appropriately. One area that could be incorporated is become a catalyst of all the new IB and Climate Funds that are available now, in order to create contests, competitions and innovation hackathons to enable those funds to also reach the entrepreneurs of low-impact communities that have more struggles having access.

"As practitioners, we have been working in silos for too long, reinventing the wheel too often and generating too many overlaps on how we use knowledge to generate constructive change. The IB Features are certainly oriented to change this."