Sustaining inclusive businesses in the horticulture sector: the experience of companies in West Java

Abstract

An inclusive business is one conducted with the economically disadvantaged as the target clientele. Several findings of previous research posit that inclusive businesses involving the participation of small farmers in their value chains encounter limited success. Nevertheless, the horticulture sector in West Java contains inclusive agribusinesses successful in the free market era by promoting their social mission of improving small-scale farmer welfare, while simultaneously turning a profit. This paper aims to evaluate the extent to which inclusive businesses can act as drivers of various innovations essential to agricultural development while simultaneously increasing the economic security of impoverished farmers in the province. An assessment is conducted of the capabilities and competencies of two West Java-based inclusive businesses initially intended by their founders to solve the problems faced by small-scale farmers. In order to achieve greater financial success, scale and impact, the ecosystem underpinning inclusive businesses and small-scale farmers should address their weaknesses, thereby enabling them to surmount obstacles.