Impact of inclusive business models on household welfare in Burkina Faso

Judith Oubda (), Alban A. E. Ahouré and Pam Zahonogo
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Judith Oubda: Thomas Sankara University
Alban A. E. Ahouré: Félix Houphouët Boigny University
Pam Zahonogo: Thomas Sankara University

SN Business & Economics, 2025, vol. 5, issue 3, 1-27

Abstract: Abstract Entrepreneurial initiatives targeting disadvantaged populations can be a tool for improving household welfare. This research analyses the contribution of inclusive business models to household welfare (income and satisfaction with working conditions) in Burkina Faso. Data were collected in May 2019 from beneficiaries and non-beneficiaries of inclusive businesses in the main economic cities of Burkina Faso. The analysis was conducted using the endogenous switching regression model, which controls for selection bias and unobserved heterogeneity, a commonly used method in impact analysis. The results indicate that the probability of an individual participating in Inclusive Business Models (IBM) is influenced by a range of factors, including membership of a professional association, marital status, social protection, the agri-food sector and the informal sector. Participation in inclusive business models allows participating individuals to increase their income and the probability of being satisfied with working conditions by about 19.32% and 68% respectively. The results show that inclusive business models have a positive and significant impact on both the income and the probability of satisfaction with working conditions of households benefiting from inclusive business initiatives. The paper also used the instrumental variables method to check robustness. Our results showed that business owners take advantage of income opportunities but tend to be dissatisfied with working conditions, i.e. the economic environment. The promotion of these inclusive business models by policy-makers is a potential tool for ensuring the well-being of the populations.

Keywords: Inclusive business; Welfare; Endogenous switching regression; Burkina Faso (search for similar items in EconPapers)
JEL-codes: I31 M21 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s43546-024-00783-7

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