Inclusive business for rural development: New typology and differentiated value creation in the agri-food sector

Research output: Contribution to journalJournal articleResearchpeer-review

Documents

  • Xiaoxue Weng
  • George C. Schoneveld
  • Benno Pokorny
  • Geofrey Mutayoba
  • Fold, Niels
  • Emily J. Gallagher
  • Edward Ezekiel
  • Selma van der Haar

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.

Original languageEnglish
Article numbere314
JournalBusiness Strategy and Development
Volume7
Issue number1
Number of pages17
ISSN2572-3170
DOIs
Publication statusPublished - 2024

Bibliographical note

Publisher Copyright:
© 2023 The Authors. Business Strategy and Development published by ERP Environment and John Wiley & Sons Ltd.

    Research areas

  • agribusiness, agricultural development, base-of-the-pyramid (BOP), inclusive business, rural development, social value, typology

ID: 380697278