Innovative inclusive business solutions are often limited by existing regulation, or because legal foundations are missing; this was initially the case for microfinance and mobile money. Moreover, as BOP markets are mainly informal, companies find it difficult to establish and enforce contracts. At the company level, corporate rules and structures can limit their ability to innovate in BOP markets. Corporate business development processes, for example, often do not allow for longer-term investment or high levels of uncertainty. In addition, in many countries, non-profit organisations (NPOs) can be limited in regards to their earned income strategy.
Review existing regulations that limit BOP participation in market activities
Embed pro-poor targets into government contracts
Introduce appropriate regulations for inclusive businesses