Policy Note on the Business Environment for Inclusive Business Models

International Finance Corporation

Washington, DC

关键词: ACCESS TO FINANCE;    ACCESS TO FINANCING;    ADVERSE SELECTION;    AFFILIATES;    AFFORDABLE HOUSING;   

RP-ID  :  74496

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This policy note has two goals. First,to assess whether inclusive business models face specificregulatory hurdles. Second, to recommend policies thatcreates a business environment conducive to inclusivebusiness. Little research has been conducted on the firstgoal. This note analyzes survey answers from companies thatapplied to the G20 Challenge. These companies were asked torank regulatory obstacles and explain whether theseobstacles created significant hurdles to their ability toserve the base of the pyramid. On the second goal, this notehighlights policy recommendations for governments,development finance institutions and donors. It alsoincludes policy measures specific to countries and contexts.Some policy measures address regulatory hurdles forinclusive business models. Others support inclusive businessmodels by providing incentives when needed. The firstsection analyzes survey answers from the 167 applicants forthe G20 Challenge. The starting point was to listen tobusinesses a logical place to begin when seeking to improvethe business environment. The second section describespolicy measures for business models that include the base ofthe pyramid as producers or suppliers, focusing onagriculture. Businesses that source from small farmers haveinclusive business models because they integrate farmers intheir value chains. Small farmers are often considered baseof the pyramid if their income is low or they lack basicgoods or services. The third section describes policymeasures for business models that include the base of thepyramid as customers particularly models that provideaffordable housing, health, education and basic financialservices. In many countries basic services are still mainlyprovided by the public sector or recently privatizedcompanies and more stringent regulations often apply. Thissection describes regulations and policies that affectinclusive business models in these sectors. The fourthsection describes roles for governments, development financeinstitutions and donors in supporting inclusive businessmodels. The business environment is important becausecompanies that do business with the base of the pyramid needto understand new markets, understand the market behavior ofbase of the pyramid customers, appraise new risks anddevelop new systems, business processes and training.Companies with inclusive business models also faceperceptions from investors and lending institutions that thebase of the pyramid is riskier than other markets.