An assessment of 'Inclusive' Business Models: Vehicles for Development, or Neo-Colonial Practices?

Abstract

In a period of decreasing aid budgets and increasing private sector engagement in the Global South, Inclusive Business-referring to a business model that integrates marginalized people in the company’s value chain as suppliers, distributors, retailers, or customers to the mutual benefit of both the company and the community has become a preferred development strategy. However so far the impacts of inclusive business models on the livelihoods of these ‘marginalized people’ have remained elusive. With this paper I aim to contribute to a better understanding of the impacts perceived by the communities. Starting from the idea that the rural landscape is socially differentiated, I scrutinize the impact of inclusive business models on the ground at the level of the farmer communities in two very different settings: the savannah of North-Ghana and the green valleys on the slope of Mount Kenya in East Kenya. The findings indicate that diverse groups in the communities are impacted differently by inclusive business models. Both companies catalyse trajectories that in the long term might have negative repercussions on the livelihoods of smallholders. These long-term, or unintended, impacts are obfuscated in frameworks used to assess inclusive business models. Inclusive business models can only be a partial answer in overcoming poverty and food insecurity.