This document discusses how inclusive business ventures that integrate low-income communities into companies' value chains as customers, suppliers, retailers, and distributors can help deliver on the UN's Sustainable Development Goals. It notes that 4.5 billion people at the "Base of the Pyramid" spend $5 trillion and represent untapped market opportunities for businesses. Inclusive businesses gain a competitive advantage by innovating to serve new markets, strengthening supply chains by sourcing locally, and expanding their labor pool. However, inclusive business also faces barriers like a lack of market information, skills mismatches, and insufficient financial access for investors and consumers.

1. Delivering on the
Sustainable Development
Goals: The inclusive
business approach
WBCSD issue brief – March 2016

2. The Sustainable Development Goals (SDGs)
Opportunity for businesses to
engage more deeply as a strong
and positive influence on society
As an engine of economic growth and employment and
a source of technology and innovation, business has a
critical role to play and a self-interest in contributing to
delivering the SDGs
2

3. WBCSD and the SDGs agenda
WBCSD: strongly engaged in
translating the SDGs’
ambitions and words into
business action underpinned
by business solutions
Tangible example: inclusive business – ventures that go
beyond philanthropy by integrating low-income
communities into companies’ value chains as customers,
suppliers, retailers, and distributors
3

4. 4
4.5 billion people at the BOP
spend US$5 trillion in aggregate
BoP accounts for more than 50% of all
consumer spending in emerging
markets and developing economies
Base of the
economic pyramid (BoP)
3 billion people living on
<US$3/day and 1.5 billion
people on up to US$ 9/day
Business case – 1
US$2.3 trillion spent on
food and beverages alone
1.7 billion people live in congested
urban environments
2.8 billion people live in vast rural areas
44% are under age 20
61% are under age 30

5. 5
It encourages innovation
From marketing to transportation to
product design, inclusive businesses find
innovative approaches to serve BoP customers. It’s a
competitive
advantage
Inclusive
businesses are early-
movers into untapped
BoP markets. They
enhance their brand
value and license to
operate by building
their reputation as a
business partner of
choice.
It’s a supply chain strategy
Sourcing materials locally from small-scale
producers, inclusive businesses build stronger
and more productive suppliers and secure
access to local resources.
It expands the
labor pool
Inclusive businesses
have higher access to
appropriately skilled
and more cost-effective
employees. Better
wages and more secure
livelihoods contribute
to local economies.
Business case – 2

6. 6
Inclusive business linkages to SDGs – 1

7. 7
Inclusive business linkages to SDGs – 2

8. 8
Inclusive business linkages to SDGs – 3

9. 9
Internal
• Opportunity costs of investment for
venturing into new market segments
• Strategic and operational
misalignment, risk-aversion and lack of
leadership support
• Capabilities or implementation
capacities
External
• Inappropriate policy and regulatory
frameworks
• Scarce availability of BoP market information
• Lack of knowledge and information of BoP
consumers
• Mismatch in skills of BoP labor force
• Low access to financial services and
resources for investments and consumers
Solutions, but also barriers...

10. 10
WBCSD and inclusive business
Advocate
business
perspectives
Illustrate best
practices &
lessons learned
Develop
toolkits &
training
programs
Identify &
broker
opportunities

11. 11
WBCSD also seeks to leverage partnerships
and policies for action at scale

12. Download the issue brief at:
www.wbcsd.org/social-impact.aspx
www.inclusive-business.org