Powering ASEAN's economy through inclusive business

Southeast Asia is experiencing rapid economic growth and rising entrepreneurship, with real GDP expected to grow by 4.6% in 2026. Nevertheless, challenges such as high levels of informal employment, limited social protection, poverty and ageing populations are a strain on the region’s economies. Inclusive businesses (IBs), which integrate low-income populations into their value chains, can create jobs, expand access to essential goods and services, and address development challenges in the region. IBs are being increasingly recognised within ASEAN policy frameworks, such as the ASEAN IB Framework and the Plan of Action for the Promotion of Inclusive Business in ASEAN (2023-2027). Business models such as social enterprises also play a major economic role in the region, with nearly one million social enterprises operating across diverse sectors. These market economy approaches expand access to market participation, strengthen local value chains and improve access to essential goods and services. This paper maps IBs and social enterprises in the region, analysing legal, accreditation, and business support mechanisms, while highlighting best practices and systemic barriers. It provides actionable recommendations to strengthen enabling policy environments for these businesses in ASEAN Member States.