Type of business model
An inclusive business model is a type of business model that seeks to create value for low-income communities by integrating them into a company's value chain on the demand side as clients and consumers, and/or on the supply side as producers, entrepreneurs or employees in a sustainable way. 
The businesses that design and use these business models can range from multinational corporations to large domestic companies, co-operatives, small and medium-sized enterprises, or even not-for-profit organizations that use business principles—or social business approaches—to achieve their mission.
Since social value creation is integral to how inclusive business models intend to capture value, they differ from corporate philanthropy or corporate social responsibility. Businesses adopting inclusive business models can become inclusive businesses when they succeed in creating intended value and avoiding value destruction.
Criteria.
Inclusive business models can be developed and implemented by a wide range of entities, from private corporations (large and small), to state-owned companies, co-operatives, or even not-for-profit organizations, as long as the following criteria are met:
Benefits for the poor.
Businesses can improve the lives of poor people, contributing broadly to what the United Nations terms ‘human development’—expanding people's opportunities to lead lives they value.
As such, inclusive business models can make a significant contribution towards meeting the Sustainable Development Goals (SDGs).
Constraints.
Despite opportunities, many businesses are not taking advantage of them because market conditions surrounding the poor can make doing business difficult, risky and expensive. Where poverty prevails, the foundations for functional markets are often lacking, excluding the poor from meaningful participation and deterring companies from doing business with them.
The United Nations Development Programme, in a report titled "Creating Value for All: Strategies for Doing Business with the Poor” (2008), identifies five major market constraints and successful strategies to overcome them:
Success factors.
Despite these challenges, a growing number of businesses are operating successfully in poor markets. To do so, they use five core strategies:
Restructuring business processes can be as important as using new technologies. For example, the global spread of telephony is driven by wireless technology. But bringing mobile telephone service to poor people has depended partly on a change in the business process—the move to selling air time on prepaid cards. With ‘smart’ payment and pricing methods, an inclusive business model can accommodate the cash flow of its customers and suppliers, who are constrained by low and unreliable incomes and a lack of access to financial services.
Businesses can also rely on demonstration effects or engage collectively to inform public policy and promote effective regulations in developing countries. Since business engagement in policymaking can be controversial, companies and policymakers need a space to engage in frank yet transparent dialogue about how to improve the business environment. Collaborative efforts can open such a space. Companies operating in the same industry or region often share policy interests. And if they are doing business in ways that contribute to economic opportunity and human development, organizations outside the private sector may have complementary policy interests. Where business models are inclusive, collective action can give businesses a strong and legitimate voice in policymaking.
References.
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