Towards an inclusive business model
UNDP’s new report Creating Value for All: Strategies for Doing Business with the Poor demonstrates the effectiveness of more inclusive business models, both for human progress and wealth creation. The report offers strategies and tools for companies to bring in the world’s poor as partners in growth.
Creating Value for All: Strategies for Doing Business with the Poor
Publisher: UNDP, 2008
More inclusive business models recognise the poor not only as consumers, but also as drivers of growth. And when markets include more poor people, we all win.
- Cover page of the report / Photo credit: UNDP
The report is the first report of UNDP’s Growing Inclusive Markets Initiative and draws on extensive case studies by researchers predominantly from developing countries.
These case studies demonstrate the successful pursuit of both revenues and social impact by local and international small and medium-sized companies, as well as multinational corporations.
The report highlights five strategies used successfully to overcome the most common obstacles to doing business with the poor adapt products and services:
• invest in infrastructure or training to remove constraints;
• leverage the strengths of the poor to increase labour and management pool and expand local knowledge;
• work with similarly-minded businesses, non-profit organisations or public service providers;
• engage in policy dialogue with governments.
As the authors note, “There is room for many more inclusive business models. There is room for more inclusive markets. And there is room for much greater value creation.”
The study uses two new tools: a strategy matrix to help find potential solutions to common constraints and heat maps that identify opportunities by depicting access to water, credit, electricity or telephone service in a specific geographical area using colour codes.
The study uses two new tools: a strategy matrix to help find potential solutions to common constraints and heat maps that identify opportunities by depicting access to water, credit, electricity or telephone service in a specific geographical area using colour codes.
The report outlines what businesses, governments, communities, NGOs, donors and international organisations can do to ensure the greatest good. It demonstrates concrete ways the private sector can join in this vital effort.
