Development and Business Studies: A joint agenda

Background

The connection between business and development has grown stronger in recent years. As the world faces growing challenges related to sustainable development, there is a recognition for the fields of business and development studies to collaborate more closely. This global trend seems to be reflected in academic settings, where the intersection of business and development studies has equally gained traction (Lindgreen et al 2020).

At ISS, the student population – with the majority from the Global South - is changing at least partly in their outlook on jobs, educational needs and their backgrounds. Whereas most ISS students have a background in government and local civil society organizations, the share of students with a background of business has been growing from 20% in 2022 to 25% in 2023. In the 2024 batch, the largest group of students (33%) comes from the private sector (see Figure 1).

The change is reflected in students’ interests. For instance, over 40% of Governance and Development Policy Major students in the 2025 batch indicate private sector and civil society interactions as their primary area of interest. Meanwhile, RSM-students – increasingly coming from the Global South – demonstrate a growing interest in business strategizing in the Global South. Topics such as establishing and managing social enterprises while contributing to sustainable development in a Global South context are among the main areas of interest. These trends make the need for an educational programme that bridges business management with development studies not just timely, but essential.

The trend of connecting business and development is not new. Among other things, ISS and RSM have previously collaborated within the Leiden-Delft-Erasmus International Centre for Frugal Innovation, on Civic Driven Change and joined forces on an initiative for the horticulture sector in Westland. The June 2024 SDG Conference  – held at Erasmus University Rotterdam (EUR) and well-attended by academics, businesses, NGOs and other interested parties – highlighted the urgency of addressing the gaps in sustainable development outcomes and emphasized the need for business involvement in these efforts.

This article reflects our thoughts and ideas on establishing joint education between ISS and RSM. The two institutes at Erasmus University Rotterdam - ISS, working on development studies from its key values of social justice and equity and inclusion; and RSM aiming at ‘being a force of positive change in the world’ though business and the SDGs – seem to have the profiles and capacities to complement each other.

The growing need for closer integration of Business and Development Studies

The urgency of connecting business and development studies has never been more apparent, with the recognition that business, including through its interactions with state and civil society, has a major impact on human development and the natural environment, contributing both to failures and to new market-focused solutions, initiatives and partnerships.

Let’s first have a look at business’ inevitable role in economic life, covering businesses ranging from small businesses situated in the Global South to globally operating multinational companies. Micro, small and medium-sized enterprises (MSMEs) play a significant role in societies worldwide by contributing substantially to employment, economic growth and innovation, while providing essential social and public services (Eade and Sayer 2006). These businesses are thus vital to the overall development trajectory of these regions. Development initiatives consequently often work with small enterprises and entrepreneurs to realize their development objectives (Knorringa and Helmsing 2008).

Companies are increasingly expected ... to contribute to social outcomes

At the same time, drawn by a fast-growing middle-class and relatively low entry barriers, businesses are identifying opportunities in the Global South. But the space for business to mindlessly capitalize on these opportunities is shrinking. It is crystal clear that economic systems tend to benefit more powerful actors, including multinationals, over smaller actors, including MSMES and entrepreneurs, often situated in the Global South. It is also becoming generally accepted that the never-ending quest for profits challenges the Earth’s limited capacity. The latest feat in curbing corporations’ devastating effects on society and nature is the European Union’s Corporate Sustainability Due Diligence Directive (CSDDD), expecting companies to monitor and mitigate their negative impacts on society and environment.

Yet business is not only expected to do no harm; it is also viewed as part of the solution. The UN's Sustainable Development Goals provide a global framework in which business plays a key role. In fact, companies are increasingly expected by government, donor agencies, communities and citizens to contribute to societal outcomes, from reducing inequality to combating climate change. A better understanding of private sector involvement is needed to critically evaluate their enthusiastic and confident involvement in development. Education programmes need to inform a critical societal attitude to hold development policy and practice from business – as well as other development actors – accountable.

The future of education: Integrating Business and Development Studies

There is thus a need for more solid understanding and in-depth analysis of business’ role in development. We point at four gaps in Business and Development Studies respectively.

1. While there are ample theories and frameworks concerning strategic management and business development in general, very few educational programmes in Europe are tailored to the Global South. Meanwhile, Business and Development Studies acknowledge the significant differences in legal, political, cultural and economic characteristics of Global South contexts and ecosystems, implying greater volatility and uncertainty.

2.  Business Studies has largely overlooked structural issues relating to power that tend to concentrate wealth, voice and wellbeing in the hands of a few powerful actors at the expense of others.

3. While Development Studies interprets development from a range of perspectives, there is a tendency to embrace an antagonistic attitude towards business’ role in development, as such overlooking business as a key player in society, while failing to identify leverage points to change their operations.

4. The critical and fundamental approach of Development Studies towards development does an excellent job in critically approaching development and unpacking faulty assumptions behind business’ role in realizing development. This means there is less room for technical, logistical, administrative, professional and practical side of ‘doing development’. With an increased interest from students to learn the required knowledge and skills for professional involvement, this is an opportunity for Development Studies to capitalize on this wealth in Business Studies.

To address the growing demand for education that bridges Business and Development Studies, this is the time to develop curricula that promote interdisciplinary thinking and equip students with the tools they need to work at the intersection of business and development. In doing so, they need a solid, extensive and critical understanding of development.

An education programme combining Business and Development Studies should aim to equip students with a deeper understanding of how business practices can complement development goals. The curriculum should cover a range of topics, including intercultural communication, leadership in diverse contexts, the capacity to understand the defining characteristics of diverse Global South contexts and sustainable business strategies specifically tailored to the Global South. It should include a focus on professional knowledge and skills. Students could learn about the various interpretations of development and the related role of businesses in this process, with frameworks drawn from theories such as modernization, dependency and post-development. There should be attention for the inherent challenges in marrying business and development, such as formulating an answer to the dominant win-win discourse which portrays business and development as easily combinable.

Challenges in integrating Business and Development Studies

This does not mean, however, that combining Development Studies and Business Studies is an easy task. While the benefits of closer integration between Business and Development Studies are clear, there are significant challenges that must be addressed, including, primarily, unequal access to funding between students with a business and development background.

As is typical for multidisciplinary initiatives, the epistemologies and paradigms of Business and Development Studies differ, raising challenges for their integration. Business education often relies on positivist approaches, focused on market-driven solutions and practical skills. In contrast, the field of Development Studies tends to embrace interpretivism or critical social science approaches that critically consider the broader social, political and economic forces at play. Furthermore, some may be convinced that combining Business and Development Studies represent a capitulation to neoliberal and capitalist thinking. The ability to bridge these differences in a meaningful way – while recognizing the value of each perspective – will be critical for the success of any interdisciplinary education programme.

The ability to bridge … differences in a meaningful way … will be critical for the success of any interdisciplinary education programme.

Another key issue is the heterogeneity of the Global South itself. The contested concept of ‘Global South’ encompasses diverse economic, cultural and political contexts, meaning that business models and development strategies that work in one region may not be appropriate in another. An education programme for business students must, therefore, teach business students how to adapt business practices to the unique challenges and opportunities of different regions, while acknowledging differing and rich interpretations of what development and sustainability entail, depending on the context.

Finally, there is the issue of values and skills. Business and Development Studies come from distinct intellectual traditions, with different goals, values, norms and skill sets. A successful educational programme will need to help students navigate these differences, enabling them to complement each other's strengths rather than view them as conflicting. Awareness of the differences between the two fields will be crucial in fostering collaboration and generating real-world solutions to development challenges.

Marijn and Inge will continue exploring the space for combining Business and Development Studies, while remaining mindful of the challenges and tensions involved in this journey. They would be happy to continue engaging with the ISS community and are open to your ideas and suggestions!