Inclusiveness and small businesses in emerging markets

The paper focuses on the key question to what extent inclusive business (IB) models can be promoted amongst MSMEs in emerging markets, who constitute between 95-99% of all businesses in emerging markets. The paper first looks at the definition and concept of IB and highlights differences in interpretations and substance, where two, basic approaches can be discerned; (1) the strict interpretation that may ultimately lead to the idea that IB is the same as social enterprises; and (2) the more flexible and pragmatic approach that considers every business as inclusive that targets and involves the poor. The paper then looks at other aspects that are relevant in assessing to what extent IB may be more widely adopted in emerging markets. It highlights a number of internal, market and socio-cultural constraints that may constitute limiting factors. Finally, the paper suggests that, in order to promote the concept of IB, it is necessary to limit the 'accountability ceiling' to the spheres of control and influence and focus on concrete, short term, social and environmental improvements.