INCLUSIVE BUSINESS

OPPORTUNITIES: Inclusive Business looks at a specific population which is not
usually targeted by economic activities, the so-called “Base of the (income) pyramid”,
wherein many people live and interact within informal economies. According
to Guesalaga and Marshall 2 (2008:417), the BOP sector accounts on average for
more of the 50% of the purchasing power of low-income countries. The opportunity
is that to engage such beneficiaries as business co-partners, thus co-creating
with&for them new products or services responding to local needs.
EFFORTS: Inclusive Business has nothing to do with delocalizing in low-income
countries to reduce the incidence of labour costs, nor to develop Corporate Social
Responsibility projects. Inclusive Business refers to the company’s core business,
that needs to be open to new insights coming from social and environmentally-oriented
disciplines. Overall, to do Inclusive Business is required to reshape the
mainstream business model according to: 1. new consumers, 2. new distribution
models, 3. new constraints, 4. sustainability needs, 5. new partners, 6. new cultures.
RESULTS: Inclusive Business is not the silver bullet of modern times. However, Inclusive
Business, as implemented by its early adopters, proved to be successful in:
1. providing business opportunities from untapped markets, 2. creating disruptive
innovations, 3. building brand reputation, 4. creating inclusive ecosystems and,
last but not least, 5. reacting to the challenges of an integrated global markets,
in which the need to add value to the production chain has never been stronger.
1. Hart S. and Sharma S. (2004), “Engaging fringe stakeholders for competitive imagination”, Academy of Management
Executive, 18(1), 7-18.
2. Guesalaga R. and Marshall P. (2008), “Purchasing power at the Bottom of the Pyramid: differences across geographic
regions and income tiers”, Journal of Consumer Marketing, 25(7), 413-418.