The Asian Development Bank is looking to prepare and release a plan to further boost its engagement with inclusive businesses — private investments that aim to reach the bottom of the pyramid by providing them with much-needed social services, jobs or economic opportunities.
Unlike social enterprises, inclusive businesses are greater in scale and realize higher revenues. But unlike CSR activities, they have a broader social impact. As such, inclusive businesses are often regarded as a viable approach toward inclusive growth and sustainable development.
ADB, however, has yet to fully leverage inclusive business’ potential. In 2013, just five of 16 private sector projects the bank approved qualified as inclusive business. There are several reasons for this, including the fact that very few of the business plans submitted to the bank for review are financially viable.