Giving Compass' Take:

• Here are six markets in Asia that are pioneering social impact and paving the way for inclusive business to enable sustainable livelihoods. 

• How can donors in the U.S. partner or help expand social impact in Asia? 

• Read more about the social investment landscape in Asia. 

Inclusive Business (IB) is a novel concept in Asia, but highly relevant. Aiming to catalyse social impact in a financially viable way, it provides opportunities for private and public sector players to work alongside communities at the bottom of the pyramid (BoP) to enable sustainable livelihoods for all.

For the BoP, IB models offer income generation opportunities above the market rate and/or expand access to essential goods and services. Likewise, for companies, IB models not only offer higher-profit business and investment opportunities, but also greater visibility as a member of the community.

Here is our assessment of 6 markets in Asia that are paving the way for inclusive business.

Cambodia: As the poorest country in Southeast Asia, Cambodia presents a great opportunity for impact investors and corporates looking to explore IB models. Despite great strides in poverty reduction in recent years, the Asian Development Bank estimates that almost 70% of Cambodians still live on less than $3.20 a day.

Indonesia: Indonesia has the biggest BoP market in Asia, second only to China. This presents a market opportunity of over USD 120 million or 49% of total national consumption.

Myanmar: With one third of the population living below the national poverty line, Myanmar is the second poorest country in Southeast Asia, after Cambodia.

The Philippines: Amongst Southeast Asian markets, conversations around inclusive business are most mature in the Philippines. The Philippine government has identified IBs as a strategic imperative for industry support programmes.

Thailand: Poverty in Thailand is primarily a rural phenomenon, with over 50% of the country’s 7.3 million poor living in rural areas. An additional 6.7 million live within 20% above the national poverty line, remaining vulnerable to falling back into poverty.

Vietnam 12% of the population in Vietnam live on less than USD 3 a day; around 67% lives on less than USD 5 a day. IBs, particularly in agribusiness and the seafood industry, hold great potential to support these communities.

Read the full article about hotspots for social impact by Sangeetha Watson at avpn.