How inclusive businesses can contribute to local food security

Abstract

The concept of inclusive business has gained a central place in development policy and practice. that the underlying premise is that by making small scale farmers part of their business model, companies can increase their profitability and at the same time contribute to farmers’ livelihoods. Despite a wealth of positive anecdotal evidence, it remains unclear whether and how a company can do this. This paper examines how agri-business should become (more) inclusive in contributing to food security. Based on literature on pro-poor market linkages, I draw a list of lessons for companies to consider when investing. I plea for approaches that take into account the diverse livelihood strategies of farm households, the diversity in farm types at community level and the longer term effects of a companies’ activities.