This book is about organizations that positively impact the lives of the poor through their businesses. Therefore, I call their business models inclusive. Normally, businesses are not supposed to worry about poverty. The raison d’être of businesses, by which I imply for-profit commercial enterprises, is to maximize shareholders’ wealth. We assume that it is the responsibility of the government and some not-for-profit organizations to address the needs of the poor. Therefore, the organizations that are the subject matter of the book are a relatively new breed and somewhat paradoxical – they want to solve one of mankind's toughest problems, poverty, by deploying business principles. They want to create a positive social impact without depending on grants or charities; they want to maintain financial sustainability without maximizing profitability. What is the need for such organizations, how they can achieve, if at all, this dual objective and what have been the challenges in their journeys so far are worth knowing, debating and disseminating because this innovative organization form might just be an answer to many of the open questions that the world faces today in its battle with growing economic inequality despite rising global prosperity.

This book is mostly written in the context of India with one case study from Nepal and a few references to Bangladesh. However, I have discussed the subject matter of this book with several international audiences and most of them could derive insights from these that could be translated to their own contexts, such as Connecticut, Johannesburg, Sao Paolo or Seville. Therefore, I am hopeful that the inclusive business models that I describe and analyse in this book will have important lessons for anyone who wants to engage with the problem of poverty, irrespective of their geographic location.

INDIA TODAY: POISED FOR A DEMOGRAPHIC DIVIDEND OR A DEMOGRAPHIC DISASTER?

India has made rapid economic progress during the last 25 years, post the liberalization of its economy. However, one problem that remains intractable is that of poverty. While estimates vary, there are still a significant number of people in India who are below or live perilously close to the poverty line. It was assumed that with the economic progress of the country, levels of poverty would reduce through the trickle-down effect.