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:
Benefits for businesses include:
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.