Inclusive Business Market Scoping Study in the People's Republic of China by Asian Development Bank;

Author:Asian Development Bank;
Language: eng
Format: epub
Publisher: Asian Development Bank Institute
Published: 2018-08-15T00:00:00+00:00

III

The Inclusive Business Market in the People’s Republic of China

A. Characteristics of the Sample Companies

Based on the 193 companies listed for the study, IB activity in the PRC is spread across the country, with most initiatives concentrated in the northern, southern, and eastern regions. The greatest number of IB approaches identified are occurring in Beijing, Gansu, the Inner Mongolia Autonomous Region, Ningxia, Shanghai, and Shanxi, with the overall trend of initiatives focused on rural regions.

The majority of IB initiatives utilize IB models in line with the G20 IB framework. As noted earlier, the longlist review process categorized companies as IB models, strategic CSR, for-profit social enterprises, and not-for-profit social enterprises.

Key to the success of any IB approach is that the company is commercially viable and ideally bankable. Of the 193 companies identified and where data were available, only 13 companies were assessed to have a high level of profitability in terms of profit margin generated.57 In comparison, 135 companies were identified to have low to medium profitability, and 144 companies were rated as having a low to medium level of bankability in terms of their perceived debt repayment ability. However, it is worth noting that the IB approaches involve different sectors, and profitability levels across sectors are inherently different.

Figure 7: Types of Inclusive Business in the People’s Republic of China

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