Business innovations

Inclusive business is highly profitable. Inclusive businesses do not compromise on profits and innovation to reduce costs and enlarge reach to markets. Studies from the Inter-American Development Bank and International Finance Corporation found that their inclusive business investments yield higher returns than their traditional investments because inclusive business investments often use innovative financing structures that reduce risks and increase profitability without worsening exploitation of workers.

Innovation is the key for the success of inclusive business companies, because the margin per unit is typically low given customers are the poor. For example: A coffee company in the northern Philippines uses drip irrigation to save water, bar codes to monitor tree quality, reforestation to reduce land costs, and outsources industrial capacities to farmers rather than pure contract farming... —blogs.adb.org/blog