G20 Inclusive Business Report for the 2016 Summit
Tuesday, 6 September, 2016
G20 Inclusive Business Report for the 2016 Summit
Executive Summary
- Inclusive business is at the core of the G20 agenda. These businesses harness market forces to integrate the base of the pyramid (BOP) into global value chains, thereby improving access to affordable quality products and services, enhancing productivity, and generating new income through decent work and livelihood opportunities. Inclusive businesses promote sustainable development in all its dimensions - economic, social, and environmental.
- Inclusive businesses can make an important contribution to the 2030 Agenda by reducing poverty, shrinking inequality, and contributing to sustainable economic growth. Depending on the business’ specific engagement, inclusive businesses may additionally contribute to further Sustainable Development Goals.
- Inclusive businesses highlighted a lack of financing and capacity among the BOP as primary obstacles to their business. Many businesses address these issues through their own programs. A shortage of market information and sector-specific frameworks were also cited as challenges.
- Governments support inclusive businesses by enabling them to enter and operate in the market, helping them to integrate the BOP into value chains, and empowering the BOP themselves to participate in value chains. Lessons for policy makers include applying the inclusive business typology, targeting the relevant inclusive business approach, empowering a government champion, developing an integrated policy approach, avoiding preferential treatment of individual companies, and engaging all relevant stakeholders.
- The G20’s convening power can bring stakeholders together to promote inclusive business. The G20 can add value on the topic by building awareness through clear and consistent messaging, encouraging action among members, driving comprehensive analysis of the inclusive business ecosystem, and sharing knowledge and developing partnerships.
- While financing is a common challenge for inclusive businesses, different types of inclusive businesses require different support. Coordination between governments and development finance institutions could help to bridge the financing gap.
- Future action by the G20 should continue the dialogue and learning through the G20 Global Platform on Inclusive Business. Specific actions may include harnessing quick wins in financing, driving an inclusive business ecosystem approach, measuring contributions to the 2030 Agenda, and championing peer learning and action.