Inclusive business for rural development: New typology and differentiated value creation in the agri-food sector
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- Inclusive business for rural development
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Inclusive businesses (IBs) resonate with policymakers seeking to leverage private capital in support of poverty alleviation and sustainable development. In the agri-food sector, which represents the largest segment of the base-of-the-pyramid (BOP) market and a key source of livelihood for the rural poor, there is limited evidence on their diversity and social value creation mechanisms. This prevents practitioners from identifying impactful IB types and design features. A statistical analysis of 46 cases in Tanzania and Ghana identified four IB types: (1) self-reliant agribusinesses, (2) domestic plantation companies, (3) social enterprises, and (4) locally-embedded Small and medium-sized enterprises (SMEs). Our findings suggest that socially-driven and localized IBs hold high impact potential but require significant external support, while more self-sufficient IBs adopt less socially innovative designs. This study demonstrates the utility of a data-driven approach to capture the complexity of real-world IBs, which yielded practical insights for more effective poverty alleviation through business means.
Originalsprog | Engelsk |
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Artikelnummer | e314 |
Tidsskrift | Business Strategy and Development |
Vol/bind | 7 |
Udgave nummer | 1 |
Antal sider | 17 |
ISSN | 2572-3170 |
DOI | |
Status | Udgivet - 2024 |
Bibliografisk note
Funding Information:
This work was funded by the European Commission (DEVCO) funded project’ Governing Multifunctional landscapes in Sub‐ Saharan Africa: Managing Trade‐Offs between Social and Ecological Impacts’ and the CGIAR Research Programme on Forest Trees and Agroforestry (FTA) led by the Center for International Forestry Research (CIFOR) in partnership with Bioversity International, CATIE, CIRAD, ICRAF, INBAR, and TBI. We thank Dietmar Stoian, Gianpiero Menza, Kwame Banson, and Jesper Jonsson for their valuable contributions to research planning and data collection activities. Open Access funding enabled and organized by Projekt DEAL.
Publisher Copyright:
© 2023 The Authors. Business Strategy and Development published by ERP Environment and John Wiley & Sons Ltd.
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