What if our Private Sector Development (PSD) interventions targeted social impact more directly? It matters what kind of businesses our interventions nurture, beyond the general positive outcomes of employment and business creation. Supporting businesses with social impact can magnify the value of PSD programmes for the local population. Inclusive businesses, including social enterprises, can be found in all impact areas: they provide education, energy, water and sanitation or health care; they integrate small farmers, traditional crafts people, or informal businesses; they upcycle waste or use tourism activities to protect the environment. Engaging with inclusive businesses can make a PSD Program- me more effective and impactful by ensuring the Programme’s support reaches those who need it most.
This guide explains why and shows you how to identify inclusive business opportunities for a development Programme. The guide addresses Programme managers and Programme developers in bilateral and multilateral development agencies. Part 2 of this guide explores in more detail how to integrate an inclusive business approach at policy level.