The Role of Inclusive Business in Reducing Poverty and Fostering Sustainability in Asia

The Asian Development Bank’s publication highlights how inclusive business initiatives integrate low-income groups into markets, fostering economic growth and social progress. Through case studies in finance, housing, healthcare, and sustainable production, it showcases the transformative potential of aligning profitability with societal impact.

The Asian Development Bank (ADB), through its publication "The Transformative Power of Inclusive Business," examines how commercially viable initiatives can integrate low-income groups into markets while addressing economic and social challenges. Developed by researchers Manfred Kiefer, Arvin Yana, and Christian Abeleda, the study highlights impactful projects in the Philippines, Indonesia, India, and Mongolia, demonstrating that profit-driven ventures can also create meaningful societal benefits. With ADB’s strategic investments and partnerships, these initiatives empower underserved communities, fostering innovation, resilience, and equity across diverse sectors.

Empowering Women Through Financial Inclusion

In the Philippines, the Center for Agriculture and Rural Development, Inc. (CARD, Inc.) exemplifies inclusive business with its microfinance program targeting low-income women. Supported by a $10 million ADB loan, CARD, Inc. provides accessible microloans that enable women to build sustainable businesses and achieve financial independence. Entrepreneurs like Josefina Maranan and Rowena Sedeño have used these loans to expand their ventures, doubling incomes and enhancing their families’ quality of life. Beyond financial support, CARD, Inc. fosters a culture of savings and discipline, helping borrowers stabilize their economic conditions. This initiative has transformed lives in underserved communities, highlighting the potential of inclusive finance as a tool for empowerment.

Expanding Market Opportunities for Rural Women

In Indonesia, PT Cisarua Mountain Dairy Tbk (Cimory) tackles rural economic challenges with the Miss Cimory program, which employs women as door-to-door dairy sales agents. ADB’s $4.2 million investment enabled Cimory to expand this initiative, increasing its network to 7,000 agents by 2024. Women like Elmita Sari Dewi have transitioned from informal vending to structured entrepreneurship, earning substantial incomes that support their families and communities. By training participants in sales and customer engagement, the program empowers women with financial independence and builds trust within rural markets. Miss Cimory serves as a model for leveraging inclusive business to create economic opportunities while addressing gender disparities.

Housing for All: Addressing Urban Challenges

India’s housing sector faces critical shortages, particularly for low-income groups. IIFL Home Finance Limited (IIFL HFL), supported by a $68 million loan package from ADB, provides affordable housing loans to economically weaker sections, with a special focus on women borrowers. By streamlining processes with technology, IIFL HFL has made homeownership more accessible, transforming lives like that of Muskala Pushpa, who overcame financial barriers to own a sustainable, green-certified home. The initiative aligns with India’s Pradhan Mantri Awas Yojana, combining affordability with environmental responsibility. Through tailored products and gender-inclusive strategies, IIFL HFL addresses housing inequities while promoting eco-friendly urban development.

Sustaining Mongolia’s Cashmere Economy

Mongolia’s cashmere industry, a vital economic pillar, is threatened by climate change and unsustainable practices. Gobi Joint Stock Company, with a $30 million ADB loan, integrates herders into a sustainable value chain that emphasizes quality, fair pricing, and climate resilience. Herders like Birvaa Dashjamts and Erdmaa Nyamdorj have benefited from improved incomes and training in sustainable herding practices, enabling them to weather environmental and market challenges. By supporting herders directly and reducing intermediaries, Gobi ensures stability and promotes environmentally friendly production methods. This initiative preserves Mongolia’s cultural heritage while securing the long-term viability of its cashmere industry.

Bridging Healthcare Gaps in Underserved Communities

Healthcare disparities in India’s rural and semi-urban areas are being addressed by Cygnus Medicare Private Limited, supported by $18.4 million in ADB financing. Operating hospitals in tier-2 and tier-3 cities, Cygnus focuses on affordable and accessible care for low-income patients. The organization adopts an asset-light model, leasing underperforming hospitals and upgrading them to provide high-quality services. Patients like Devi, who received life-saving maternal care at Ujala Cygnus Hospital, benefit from reduced costs and improved accessibility through partnerships with national health insurance programs. ADB’s funding enables Cygnus to expand bed capacity, add specialized services, and bridge critical gaps in healthcare infrastructure.

Unlocking the Power of Inclusive Business

Across these case studies, ADB demonstrates how inclusive business practices can drive sustainable development and reduce inequality. By integrating low-income groups as consumers, producers, and employees, these initiatives create economic opportunities and foster societal progress. The transformative impact lies in their ability to address complex challenges, from financial exclusion and gender inequality to climate change and healthcare disparities. ADB’s approach offers a replicable blueprint for leveraging private-sector innovation to achieve equitable growth, paving the way for a more sustainable and inclusive future across Asia. These projects not only showcase the potential of inclusive business but also underscore the importance of collaboration between businesses, policymakers, and development organizations in creating meaningful change.