Developing Inclusive Business Models

Expanding economic opportunity, raising productivity and increasing growth are crucial for alleviating poverty. In the face of the global economic crisis they are more important and more challenging than ever. Their achievement will require concerted leadership on the part of both the public and private sectors. As the OECD’s Development Assistance Committee has commented, “Increasing economic growth rates is essential – but it is not enough. The quality of growth – its sustainability, composition and equity – is equally important.” A key element of this is creating jobs and livelihood opportunities for low-income people and households. Research by the World Bank and United Nations has shown that the expansion of employment and entrepreneurial opportunities is the single most important pathway out of poverty. To achieve this there is a need to improve the access of small and micro-enterprises to fi nance, information, skills, technology, sound business practices and markets. Some of these enterprises can further raise their productivity and employment levels by upgrading and integrating into broader production networks and value chains.