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UNDP's Inclusive Markets Model

Inclusive business models include the poor on the demand side as clients and customers, and on the supply side as employees, producers and business owners at various points in the value chain. They build bridges between business and the poor for mutual benefit. The benefits from inclusive business models go beyond immediate profits and higher incomes. For business they include driving innovations, building markets and strengthening supply chains. And for the poor they include higher productivity, sustainable earnings and greater empowerment.

The BoP marketplace – nearly 4 Billion people in 151 developing countries

The marketplace is organized, in this model, as a set of concentric spheres, growing outward from, and enveloping, the BoP workplace. Three activity areas correspond to three macro-levels in this concentric model.

» Core business activities involve the workplace, marketplace and supply chain
» Social investment activities involve, engage and impact the community
» public advocacy activities impact the enabling infrastructure

Click any of the three inclusive market activities to see what investment in that sphere yields.

Core Business Operations and Value Chains

Core Ops Detail

Investment In...

» Producing safe and affordable products and services.

» Generating income and investment.

» Creating jobs.

» Developing human resources.

» Fostering entrepreneurship and building local businesses and business linkages.

» Spreading responsible business standards and practices.

» Supporting technology development and transfer.

» Establishing physical and institutional infrastructure.

» Participating in collective platforms.

Yields...

» Rapid market penetration

» Strong Brand and Product positioning

» Improved consumerism and stimulated local economies

» Community and customer loyalty to the Brand and Products.

» Improved productivity.

» Improved supply chains.

» Government and development agency subsidies, funding and other incentives

Public Advocacy, Policy Dialogue and Institutional Frameworks

Public Advocacy Detail
Collaborations with governments, the development community, trade organizations and industry peers...

» promotion of human rights, fair practices & gender equality.

» Supporting healthcare and education reform and sound environmental policies.

» Engaging in joint market research.

» Lobbying for legislative change.

» Improving BoP access to global trade, technology, training and finance resources.

» Collective corporate bargaining and dialogue with government.

» Collective physical infrastructure and technology investment.

Yields...

» Reduced market constraints

» Strengthened & stabilized local environments.

» Greater access to new markets.

» Empowered trading networks.

» Reduced market entry and business costs.

» access to new markets, market insights and inclusive business partners.

Social Investment and Philanthropic Contributions

Public Social Detail
Local community stimulation, education, and empowerment program investment...

» Making affordable financial services available to the BoP

» Investing in physical community infrastructure

» Investing in rural community empowerment

» Investing in community health, education, environment and technology programs

» Empowering women

» Philanthropy and corporate community sponsorships

Yields...

» Increased consumerism and easier access to products and servcies.

» Easier distribution, reduced costs and grateful communities.

» Empowered community advocates, actively angaged with the Brand.

» Impoved productivity and more capable workforce

» Unique and innovative supply chain networks

» Viral proliferation via community advocacy

» Media, shareholder and development community approval

» Empowered innovation environment