© Picture: SNV

What is inclusive business?

An Inclusive Business is a business initiative that incorporates members from the low-income population (Base of the Pyramid) into the company’s core processes, generating a win-win relationship.

Members from the low-income population typically fill one or more of four important roles:

 

 Producers: new sources of supply                     

 Employees: new qualified and competitive labor force

 Entrepreneurs: new distribution networks                      

   Consumers: new markets for affordable goods and services

 

Benefit for low-income population include:

  • Increase of income
  • Access to basic goods and services

Benefits for businesses include:

  • Increase in profits
  • Better competitiveness
  • Source of innovation

 

What do we mean by the ‘Base of the Pyramid’?

 

The base of the pyramid (BoP) refers to the 4.5 billion people with a PPP of less than 8 USD a day or less and live primarily in Asia, Africa and South America. They are value demanding consumers, resilient and creative entrepreneurs, producers, business partners and innovators. Because they are largely excluded from formal markets, there is a strong demand for innovative products, services and technologies that provide access to basic needs.