Held in Madrid this June, the International Summit on Alleviating Global Poverty brought together heads of state, business leaders, economists, development experts, and civil society advocates from over 70 countries. While past summits have often focused heavily on governmental and nonprofit solutions, this year’s event took a bold turn by emphasizing the transformative potential of business in tackling poverty. The central question posed: how can inclusive and equitable business models become engines of poverty alleviation?
Speakers across several panels asserted that businesses, far from being part of the problem, can be part of the solution—if they operate with inclusive ownership structures, fair labor practices, and sustainable development goals at the core of their mission. From global supply chains to local start-ups, the summit emphasized the power of private sector innovation and investment to generate not just profits but also social mobility and shared prosperity.
One of the most discussed themes was the role of employee ownership models, including ESOPs (Employee Stock Ownership Plans), worker cooperatives, and hybrid models of shared equity. A well-attended session titled “Power and Prosperity: Rethinking Ownership to Combat Inequality” featured case studies from Spain, Kenya, the United States, and Brazil, showcasing how shared ownership can reduce income disparities, build community resilience, and keep wealth rooted locally. Representatives from Mondragon Corporation, the world’s largest worker cooperative based in the Basque region of Spain, were among the summit’s most lauded speakers.
Mondragon’s model was presented as a powerful example of how cooperative businesses can scale while prioritizing dignity, equity, and democratic governance. Delegates from Latin America and Southeast Asia expressed growing interest in adapting similar structures within their own economic development strategies. Speakers noted that employee-owned firms not only tend to have lower turnover and higher productivity but also weather economic downturns more effectively, which is especially critical in low-income regions prone to volatility.
The summit also included private sector players—from multinational corporations to mission-driven startups—sharing insights into inclusive business practices that directly benefit impoverished communities. A panel of African entrepreneurs highlighted how offering equity stakes to workers and investing in local value chains has reduced poverty and strengthened long-term business sustainability. The emphasis was clear: when employees have a stake in the success of their companies, they are more likely to see economic and social gains.
Despite the optimistic tone, participants acknowledged the structural barriers to widespread adoption of these models. Regulatory hurdles, lack of financing for cooperative start-ups, and limited awareness of alternative business models were cited as major challenges. Several international development agencies pledged to launch initiatives aimed at financing and supporting employee-owned ventures, particularly in post-conflict and economically distressed regions. Notably, the World Bank and ILO announced a joint task force to study the impact of employee ownership on poverty reduction across five pilot countries.
As the summit concluded, there was a clear consensus that the business world must evolve to meet the demands of a more equitable and inclusive global economy. While policy reforms and social programs remain vital, sustainable poverty alleviation will also depend on reimagining how wealth is created—and more importantly, how it is shared. The message from Madrid was unmistakable: business can be a driver of human dignity and opportunity, but only if it puts people at the center of the enterprise.
