The Rise of Inclusive Markets: How Business Can Drive Social Change in Developing Economies

Inclusive markets are transforming the way business is conducted in developing economies, emphasising the need to integrate marginalised populations into economic systems. Rather than merely focusing on profit, businesses are now recognizing the potential to create long-term social impact by addressing the needs of underserved communities. This approach goes beyond traditional corporate social responsibility (CSR) and taps into the idea of creating shared value—where business success and societal progress go hand in hand.

At the heart of inclusive markets is the idea of providing access to goods, services, and opportunities to those typically excluded by the mainstream economy. Whether through affordable products, job creation, or access to finance, inclusive businesses focus on empowering disadvantaged groups. For example, in developing countries we are increasingly seeing companies in the agriculture industry providing smallholder farmers with resources, training, and market access. This has enabled farmers to improve their productivity, earn higher incomes, and participate more fully in the economy. 

Moreover, inclusive markets are being catalysed by technology, through innovation and new applications of existing services. For example, digital platforms are making it easier for businesses to reach underserved populations, while mobile banking and fintech solutions are giving millions of people access to financial services for the first time. These innovations reduce the barriers to market participation and promote financial inclusion and represent excellent examples of “technology-for-good”. 

The most significant benefit of inclusive markets is the roles they play in promoting sustainable development. Businesses that engage with low-income communities as consumers, suppliers, and entrepreneurs, create self-sustaining ecosystems. This not only lifts individuals out of poverty but also strengthens the overall economic fabric of the region. By investing in local communities and providing them with the tools they need to succeed, businesses contribute to long-term stability and growth.

In conclusion, the rise of inclusive markets is not just a trend. It is a critical approach to fostering social change in developing economies and we welcome efforts of policymakers, companies, and individuals in growing them. 

References

Porter, M.E. and Kramer, M.R., 2011. Creating shared value: How to reinvent capitalism—and unleash a wave of innovation and growth. Harvard Business Review, 89(1/2), pp.62-77.

Simanis, E. and Hart, S., 2008. The base of the pyramid protocol: Toward next generation BoP strategy. Cornell University.

World Bank Group, 2020. Inclusive Markets: A Strategy for Ending Poverty. World Bank Publications.

United Nations Development Programme, 2010. The MDGs: Everyone’s Business—How Inclusive Business Models Contribute to Development and Who Supports Them. UNDP Publications.