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Session Overview
4-HP097: Can Inclusive Business Deliver for the Poor?
Tuesday, 06/July/2021:
3:30pm - 4:45pm

Session Chair: Dr. Nicky Pouw, University of Amsterdam, Netherlands, The

Session Abstract

The purpose of this session is to further the critical debate on the role of inclusive business; can it deliver for the poor? In theory, inclusive business fosters solidarity in production and consumption value chains, and enables the BoP to overcome structural exclusion from resources, markets and institutions. Critics note there is a tension between promise and reality: there are risks that inclusive business models exclude BoP perspectives and lived experiences, overlook structural constraints and exclusionary mechanisms faced by the BoP , and fail to translate into responsive policy and action. Based on grounded research, we shall pull together new insights on inclusive business, to determine how it can deliver social and economic justice by and for the poor.

EADI Working Group: Inclusive Development

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Remaking Citizenship Or Fostering Profit? The German Business Sector And Refugees

Tanja R. Müller

University of Manchester, United Kingdom

The business sector has become a key actor of engagement with refugee populations. A pertinent example is the case of Germany where business leaders were from the start key actors in the development of post 2015 refugees integration policies. This paper discusses if German business sector engagement with refugee integration altered citizenship practices and thus goes beyond a classical humanitarian response. Germany is a pertinent case study for wider dynamics, where the state intersects with corporate business interests, often overriding the engagement of conventional humanitarian actors.

Performance and Organisational Setup of Collective Trading in Influencing the Terms of Inclusion in Javanese Chili Markets

Dyah Woro Untari1,2, Sietze Vellema1

1Wageningen University, Netherlands, The; 2Universitas Gadjah Mada, Indonesia

Many works of literature are biased towards the emphasize of group formation. Meanwhile, not all group formations operational with trading. This study examines the different organisational architectures of smallholder-farmers arranging market access. The study develops a contextual understanding of auction as a mediator of the farmers and the traders in chili buying in a rural coastal area in Yogyakarta. This paper addresses the question of how the different auction organisations with their collective agencies shape the terms of inclusion for smallholder-farmers. The framework of this study is the four dimensions to assess the business model’s inclusion that are ownership, voice, risk and reward. Two case studies were selected, with the theoretical reason for selecting them was the age of the groups in their activity of selling chili. The groups have the different organisational setup, the family-run auction and the group-run auction. Data were collected by observation of the everyday practices of auction, group interviews with the board members, interviews with key informants, participatory traders’ network mappings with selected farmers’ group leaders and documentation of sales record from auction book records. The framework that we use is designed to understand the terms of inclusion in market access. It suggests that all four elements are important. However, our observation showed that both groups managed to provide access to market and involve the smallholder-farmers in certain dimensions of value sharing criteria. There was an auction with different organisational structures which seemed to be more effective in altering the terms of inclusion of farmers in the fresh produce market. The mechanism of everyday practices showed that organisational structure defined the decisions of the auctions. The auction which was not a group base, nevertheless, it organised risk and reward in a way that could be more beneficial for smallholder-farmers compared to the group. Therefore, the terms of inclusion in fresh produce market access are not derived merely from a collective form of organisation structure.

Measuring the Impact of Inclusive Business: the Challenge of Female Social Entrepreneurship

Anastasia Seferiadis1, Sarah Cummings2, Bénédicte Gastineau1

1LPED (IRD/ Aix-Marseille Univ.); 2Wageningen University & Research, Netherlands, The

Social entrepreneurs, acting as agents of change in territories with limited resources, represent one solution at the micro level to overcome poverty. In all forms of social enterprises, women are over-represented, questioning whether social entrepreneurship represents an empowerment mechanism or another form of social reproduction furthering gender discrimination. In the literature, indicators have been developed to assess the performance of social entrepreneurship but it is not known how adequate these are to measure women’s social enterprises at the grassroots. This article examines the social benefits that women are receiving from social entrepreneurship and to what extent current approaches to measuring social entrepreneurship are able to take these benefits into account. Taking the case of female driven social entrepreneurship at the micro-level in resource-constrained settings in South-Asia, this study considers how social entrepreneurship can be measured. This work is based on the analysis of theoretical and empirical research on social entrepreneurship, and on three case studies derived from fieldwork carried out in Bangladesh and in India during 2008-2018. This analysis shows that the studies, employing 38 indicators, escape the narrow scope of assessing social entrepreneurship through productivist frameworks, and do attempt to capture long term pattern-breaking social change. However, the data shows that two aspects put forward by the women interviewed during the field research lack from indicators; namely (1) the importance of mechanisms of reciprocity and (2) the empowerment component of such trajectories. This study contributes to the development of pluralistic economy. Moreover, as metrics influence behaviors, it appears necessary for development practice to develop rigorous tools to measure social entrepreneurship. This study contributes to the development of sustainable development goal indicators by questioning whether a performance indicator of female social entrepreneurship can be built.

Finance Schemes in Rural Nigeria and Small Business Development

Oluwabunmi Opeyemi Adejumo1, Uchenna Rapuluchukwu Efobi2

1Institute for Entrepreneurship and Development Studies, Obafemi Awolowo University, Nigeria; 2Covenant University, Ota, Nigeria; Merian Institute for Advanced Study in Africa, University of Ghana.

In comparison to urban or semi-urban labour systems, rural farmers have been identified as a vulnerable sect of the population. This is due to their lopsided or non-inclusion in local and global value chains, poor credit access, non-access to viable markets as well as their susceptibility to price shocks of farm products which inevitably result in underpriced products or outright losses. Owing to these phenomena, this study spots non-farm businesses as important alternatives for improving the income and wellbeing of rural individuals in developing countries. Meanwhile, to grow and sustain these non-farm businesses require a liberal financial scheme that is pro-poor. By now, the formal finance system appears stringent and less of an option for this sect of persons; however, there is the cooperative informal finance scheme practiced among the rural business people which could be included, registered and recognized in the formal finance systems by the government to boost the economic activities going on in these neglected areas. This alternative income source helps households overcome vulnerability that can arise from exogenous events like weather variability, input price shocks, poor market access, and other shocks from rural economic activities. But, financing the development of these ventures will require capital accessibility to individuals in this region. Using the first and second wave of the World Bank LSMS-ISA data for Nigeria we investigate how access to formal, informal, and social network finance help (or hurt) household’s small business development. We measure small business development as months of operation of the business since the last survey, capital assets acquisition by the business, and the performance of the business. We find that while formal finance means negatively affect small business existence, informal finance and social network finance exhibit a contrary behavior; which buttresses the notion that recognition and inclusion of local informal financial schemes within the formal systems will boost the performance of grassroot businesses as well as sustain their long-run the capital investment. In addition, due to the homogeneous features of rural informal systems, the peculiarity of their financing option work for them better that formal systems, since we found also that informal finance scheme is more impactful than the other means of finance. Lastly, while informal financing schemes improve the rural poor in business, business performance decreased when small businesses access loans from social networks. From the findings of this study, overall, it can be deduced that a viable option for improving the income of the vulnerable rural sect and their subsisting businesses is to harness or fuse the informal financial systems to a liberal and accessible formal system. This will not only boost business development but foster long term sustainable economic outcomes. The findings in the article still have further contextual explanations, which are included in the paper

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