Briefs
/ Policy brief
Inclusive Business Models for the Integration of Smallholders into Agrifood Value Chains. Agroindustry Policy Brief 3
Inclusive business models promote the integration of smallholders into markets, with the underlying principle that there are mutual benefits for poor farmers and the business community. A business model describes how any given enterprise – large or small, informal or formal – creates and markets its products or services, obtains finance, and sources inputs. Each enterprise has its own unique business model.
The range of business models that make up an agricultural value chain include farm enterprises, traders, agroprocessors, wholesalers, transporters, warehouses and retailers, among others. An inclusive business model approach reinforces the value chain by focusing exclusively on strengthening business models that link small farmers to value chains. Smallholder business models include traders, farmer organizations, agrifood processors and large buyers.
This brief provides guidance on how the public sector can contribute to the goals of inclusive business models.