IDEAS home Printed from https://ideas.repec.org/a/spr/snbeco/v5y2025i3d10.1007_s43546-024-00783-7.html
   My bibliography  Save this article

Impact of inclusive business models on household welfare in Burkina Faso

Author

Listed:
  • Judith Oubda

    (Thomas Sankara University)

  • Alban A. E. Ahouré

    (Félix Houphouët Boigny University)

  • Pam Zahonogo

    (Thomas Sankara University)

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.

Suggested Citation

  • Judith Oubda & Alban A. E. Ahouré & Pam Zahonogo, 2025. "Impact of inclusive business models on household welfare in Burkina Faso," SN Business & Economics, Springer, vol. 5(3), pages 1-27, March.
  • Handle: RePEc:spr:snbeco:v:5:y:2025:i:3:d:10.1007_s43546-024-00783-7
    DOI: 10.1007/s43546-024-00783-7
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s43546-024-00783-7
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s43546-024-00783-7?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. James Heckman & Justin L. Tobias & Edward Vytlacil, 2001. "Four Parameters of Interest in the Evaluation of Social Programs," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 210-223, October.
    2. Ravallion, Martin & Datt, Gaurav, 1996. "How Important to India's Poor Is the Sectoral Composition of Economic Growth?," The World Bank Economic Review, World Bank, vol. 10(1), pages 1-25, January.
    3. Salvatore Di Falco & Marcella Veronesi & Mahmud Yesuf, 2011. "Does Adaptation to Climate Change Provide Food Security? A Micro-Perspective from Ethiopia," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 93(3), pages 825-842.
    4. James Heckman & Justin L. Tobias & Edward Vytlacil, 2001. "Four Parameters of Interest in the Evaluation of Social Programs," Southern Economic Journal, John Wiley & Sons, vol. 68(2), pages 210-223, October.
    5. Sedana, Gede & Astawa, Nengah Dasi, 2019. "Establishment of Inclusive Business on Coffee Production in Bali Province: Lesson from the Coffee Development Project in Nusa Tenggara Timur Province, Indonesia," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society (AESS), vol. 9(01), January.
    6. Kebede Manjur Gebru & Crelis Rammelt & Maggi Leung & Annelies Zoomers & Guus Westen, 2019. "Inclusive malt barley business and household food security in Lay Gayint district of northern Ethiopia," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 11(4), pages 953-966, August.
    7. G.S. Maddala & Forrest D. Nelson, 1975. "Specification Errors in Limited Dependent Variable Models," NBER Working Papers 0096, National Bureau of Economic Research, Inc.
    8. Kiiza, Barnabas & Pederson, Glenn, 2012. "ICT-based market information and adoption of agricultural seed technologies: Insights from Uganda," Telecommunications Policy, Elsevier, vol. 36(4), pages 253-259.
    9. Gede Sedana & Nengah Dasi Astawa, 2019. "Establishment of Inclusive Business on Coffee Production in Bali Province: Lesson from the Coffee Development Project in Nusa Tenggara Timur Province, Indonesia," Asian Journal of Agriculture and Rural Development, Asian Economic and Social Society, vol. 9(1), pages 111-122.
    10. Michael Lokshin & Zurab Sajaia, 2004. "Maximum likelihood estimation of endogenous switching regression models," Stata Journal, StataCorp LLC, vol. 4(3), pages 282-289, September.
    11. Asfaw, Solomon & Shiferaw, Bekele & Simtowe, Franklin & Lipper, Leslie, 2012. "Impact of modern agricultural technologies on smallholder welfare: Evidence from Tanzania and Ethiopia," Food Policy, Elsevier, vol. 37(3), pages 283-295.
    12. Gede Sedana & Nengah Dasi Astawa, 2019. "Establishment of inclusive business on coffee production in Bali province: lesson from the coffee development project in Nusa Tenggara Timur province, Indonesia," Asian Journal of Agriculture and rural Development, Asian Economic and Social Society, vol. 9(1), pages 111-122, June.
    13. Salazar, Lina & Aramburu, Julián & González-Flores, Mario & Winters, Paul, 2016. "Sowing for food security: A case study of smallholder farmers in Bolivia," Food Policy, Elsevier, vol. 65(C), pages 32-52.
    14. Tea Golja & Samanta Pozega, 2012. "Inclusive Business – What It Is All About? Managing Inclusive Companies," International Review of Management and Marketing, Econjournals, vol. 2(1), pages 22-42.
    15. James Heckman & Justin L. Tobias & Edward Vytlacil, 2001. "Four Parameters of Interest in the Evaluation of Social Programs," Southern Economic Journal, Southern Economic Association, vol. 68(2), pages 210-223, October.
    16. Michael Lokshin & Zurab Sajaia, 2011. "Impact of interventions on discrete outcomes: Maximum likelihood estimation of the binary choice models with binary endogenous regressors," Stata Journal, StataCorp LLC, vol. 11(3), pages 368-385, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gbêtondji Melaine Armel Nonvide, 2024. "Impact of Irrigation on Food and Nutrition Security Among Rice Farmers in Benin," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 36(6), pages 1343-1371, December.
    2. Tesfaye, Wondimagegn & Tirivayi, Nyasha, 2018. "The impacts of postharvest storage innovations on food security and welfare in Ethiopia," Food Policy, Elsevier, vol. 75(C), pages 52-67.
    3. Benali, Marwan & Brümmer, Bernhard & Afari-Sefa, Victor, 2017. "Small producer participation in export vegetable supply chains and poverty: evidence from different export schemes in Tanzania," GlobalFood Discussion Papers 262583, Georg-August-Universitaet Goettingen, GlobalFood, Department of Agricultural Economics and Rural Development.
    4. Armel Nonvide, Gbêtondji Melaine, 2023. "Impact of information and communication technologies on agricultural households’ welfare in Benin," Telecommunications Policy, Elsevier, vol. 47(6).
    5. Bairagi, Subir & Bhandari, Humnath & Kumar Das, Subrata & Mohanty, Samarendu, 2021. "Flood-tolerant rice improves climate resilience, profitability, and household consumption in Bangladesh," Food Policy, Elsevier, vol. 105(C).
    6. Bairagi, Subir & Mishra, Ashok K. & Durand-Morat, Alvaro, 2020. "Climate risk management strategies and food security: Evidence from Cambodian rice farmers," Food Policy, Elsevier, vol. 95(C).
    7. Emiliano Magrini & Mauro Vigani, 2016. "Technology adoption and the multiple dimensions of food security: the case of maize in Tanzania," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(4), pages 707-726, August.
    8. Seng, Kimty, 2021. "The mobile money’s poverty-reducing promise: Evidence from Cambodia," World Development Perspectives, Elsevier, vol. 22(C).
    9. Hambulo Ngoma, 2018. "Does minimum tillage improve the livelihood outcomes of smallholder farmers in Zambia?," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 10(2), pages 381-396, April.
    10. Federico Antonioli & Simone Severini & Mauro Vigani, 2023. "Visa for competitiveness: foreign workforce and Italian dairy farms’ performance," European Review of Agricultural Economics, Oxford University Press and the European Agricultural and Applied Economics Publications Foundation, vol. 50(1), pages 115-150.
    11. Doris Läpple & Thia Hennessy & Carol Newman, 2013. "Quantifying the Economic Return to Participatory Extension Programmes in Ireland: an Endogenous Switching Regression Analysis," Journal of Agricultural Economics, Wiley Blackwell, vol. 64(2), pages 467-482, June.
    12. André Dumas Tsambou & Lionie Mafang & Thierno Malick Diallo & Benjamin Fomba Kamga, 2024. "Impact of job training program on employment outcomes in Senegal," SN Business & Economics, Springer, vol. 4(8), pages 1-33, August.
    13. Song, Chunxiao & Liu, Ruifeng & Oxley, Oxley & Ma, Hengyun, 2018. "The adoption and impact of engineering-type measures to address climate change: evidence from the major grain-producing areas in China," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 62(4), October.
    14. Akpalu, Wisdom & Zhang, Xu, 2014. "Fast-food consumption and child body mass index in China: Application of an endogenous switching regression model," WIDER Working Paper Series 139, World Institute for Development Economic Research (UNU-WIDER).
    15. Julius Manda & Cornelis Gardebroek & Makaiko Khonje & Arega Alene & Munyaradzi Mutenje & Menale Kassie, 2016. "Determinants of child nutritional status in the eastern province of Zambia: the role of improved maize varieties," Food Security: The Science, Sociology and Economics of Food Production and Access to Food, Springer;The International Society for Plant Pathology, vol. 8(1), pages 239-253, February.
    16. Tezera W. Meskel & Mengistu Ketema & Jema Haji & Lemma Zemedu, 2021. "Welfare Impact of Moringa Market Participation in Southern Ethiopia," Sustainable Agriculture Research, Canadian Center of Science and Education, vol. 9(3), pages 1-98, December.
    17. Yonas Alem & Håkan Eggert & Remidius Ruhinduka, 2015. "Improving Welfare Through Climate-Friendly Agriculture: The Case of the System of Rice Intensification," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 62(2), pages 243-263, October.
    18. Salvatore Falco & Marcella Veronesi, 2018. "Managing Environmental Risk in Presence of Climate Change: The Role of Adaptation in the Nile Basin of Ethiopia," Natural Resource Management and Policy, in: Leslie Lipper & Nancy McCarthy & David Zilberman & Solomon Asfaw & Giacomo Branca (ed.), Climate Smart Agriculture, pages 497-526, Springer.
    19. Lassalas, Marie & Duvaleix, Sabine & Latruffe, Laure, 2021. "Stringency of environmental standards, yield, product quality and revenue: Evidence from French wheat production," 2021 Conference, August 17-31, 2021, Virtual 315184, International Association of Agricultural Economists.
    20. Cao, Yangzhe & Swallow, Brent & Qiu, Feng, 2021. "Identifying the effects of a land-use policy on willingness to pay for open space using an endogenous switching regression model," Land Use Policy, Elsevier, vol. 102(C).

    More about this item

    Keywords

    Inclusive business; Welfare; Endogenous switching regression; Burkina Faso;
    All these keywords.

    JEL classification:

    • M21 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics - - - Business Economics
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:snbeco:v:5:y:2025:i:3:d:10.1007_s43546-024-00783-7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.