INCLUSIVE BUSINESS MODELS
An initiative to create, realise and further develop inclusive business models, stimulating bottom and top of the pyramid collaboration
Inclusive businesses aspire to engage the poor in the value chain, which comes with various challenges. Therefore, developed a 5-step-to-scale approach, where we help companies overcome these challenges.
Why scale inclusive business models collaboratively?
Inclusive businesses must scale to meet needs of the millions of people that are at the Base-of-Pyramid (BoP). At the same time, these inclusive businesses must stay financially self-sustaining. In order to do that they must adapt their business models and involve key partners in the scaling process.
Checklist
Are you an inclusive business?
Inclusive businesses must scale to meet needs of the millions of people that are at the Base-of-Pyramid (BoP). At the same time, these inclusive businesses must stay financially self-sustaining. In order to do that they must adapt their business models and involve key partners in the scaling process.
5 Steps to scale inclusive business collaboratively
We developed a 5-step approach to help companies overcome the challenges they face when aspiring to scale or become an inclusive business. With this five-step plan as a basis, several inclusive businesses have already been helped, and so we hope to guide many more.
Scientific bases
Our five step plan is based on academic research and literature.
Cases
About
Businesses’ inclusive efforts do not always turn out to be inclusive. Inclusive businesses aspire to engage the poor in the value chain for the benefit of both. They develop new business models to create opportunities for Base-of-Pyramid (BoP) communities’ social and economic wellbeing while keeping a for-profit nature. To do so, multiple stakeholders – governmental authorities, non-governmental organizations, BoP communities, financial institute, companies, etc. – must be involved. Yet it often turns out to be challenging to align stakeholders’ conflicting interests and balance their unequal relationships. This may increase the coordination costs to a point that a business no longer finds it economically viable. Also, the conflicts that arise between stakeholders may lead to further inequality rather than promote inclusion. Thus, businesses may ultimately fail to deliver opportunities for inclusion despite their aspiration.
Our objective is to make collaborative business model innovation for inclusive business more effective, while simultaneously building up a body of scientific knowledge.
First, we developed a straightforward, practical and versatile tool to support key stakeholders in collaborative business model innovation for inclusive business. Herewith, we aim to alleviate poverty in Base-of-Pyramid (BoP) communities across the globe by integrating them into the value chain as equal business partners. We also encourage inclusive business development in small, medium-sized and large companies’ in multiple industries. Further, we assist inclusive business consortia that build bridges between these companies and BoP communities as well as other stakeholders involved.
Second, we aim to contribute to the project members’ scientific domains. Therefore, we investigate when which elements of the individual stakeholders’ business models must be aligned to promote inclusion. Also, we examine which current theoretical frameworks best explain successful collaboration in an inclusive business context.
We take an action research approach which aims to provide not just solutions to the immediate challenge, but also learnings that contribute to scientific knowledge and theory. Therefore, the approach fits nicely to our objectives. The approach implies that we use scientific methods to study the challenges of inclusive business together with those who experience them directly. Thus, we work closely with inclusive businesses, Base-of-Pyramid (BoP) communities and other stakeholders in the research process.
By Dion Hulleman, The Next Organization Nowadays, the attention to diversity and inclusivity in society is increasing. Organisations aim to offer an inclusive and...
On June 24 2021, we organized an online webinar to share what we learned in our research project about scaling inclusive business models collaboratively in...
By Britt Wiefferink Inclusive businesses have to become truly embedded in the local context to reduce poverty in BoP communities. Therefore, Hart and London (2005,...
By Mathilde Miedema Recently, the Nobel Prize for Economics 2019 was awarded to three economists for their research into tackling extreme poverty in developing...
By André Nijhof LendaHand is a typical example of an inclusive business. It aims to service financial transaction between people with and without money. How? By showing...
By Pascal Benincasa Model farmers and cooperatives are key to success for agricultural extension projects in the developing world. Model farmers are farmers elected as...
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