Policy Note on the Business Environment for Inclusive Business Models

Policy Note on the Business Environment for Inclusive Business

Until recently the literature on inclusive business has focused on social entrepreneurs, which tend to run smaller companies and are often startups. The focus is shifting to more established companies with inclusive business because they provide innovative solutions that sustainably reach many people at the base of the pyramid. Showcasing these homegrown businesses—generally in medium-size and large domestic companies—was the goal of the G20 Challenge.

 

This note analyzes survey answers from the G20 Challenge applicants on the regulatory obstacles they face in their businesses. It summarizes how public policy can support business models that include people at the base of the pyramid as producers or suppliers (focusing on agriculture) and as customers (focusing on affordable housing, health, education and basic financial services). These sectors were chosen because most applicants from the G20 Challenge operate in one of them. Finally, the note offers recommendations on how governments, development finance institutions and donors can support companies with inclusive business models.