Theoretical and Applied Economics
No. 2 / 2026 (647), Summer
Effect of inclusive business models on multidimensional poverty in Burkina Faso
Thomas Sankara University, Burkina Faso
Eugène Dimaviya COMPAORÉ
Thomas Sankara University, Burkina Faso
Boukaré MAÏGA
Thomas Sankara University, Burkina Faso
Abstract. This paper analyzes the contribution of inclusive business models to multidimensional poverty. The survey data were collected in Burkina Faso in 2019 from households that were beneficiaries and nonbeneficiaries of these inclusive initiatives. The methodology is based on the approach developed by Alkire and Foster (2011) for calculating the multidimensional poverty index. Next, a semi-ordered recursive bivariate probit model was adopted to correct for endogeneity bias between participation in inclusive business models and multidimensional poverty. The results identify participation in IBMs, income, associative membership, age, and bank card ownership as the key determinants of multidimensional poverty. Specifically, participation in IBMs reduces the likelihood that a household will fall into multidimensional poverty by 31.25%, confirming their role in improving well-being. Therefore, the promotion of these models by policymakers is a strategic lever for social development.
Contents
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Effect of inclusive business models on multidimensional poverty in Burkina Faso
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