Abstract In order to explore the building mechanism of inclusive business model in Chinese poor areas,,4 business cases were collected in Wulin Mountain District and the conceptual model was proposed to include the logical relation between local capability, entrepreneur guanxi, and inclusive business model formulation. After collecting related information, we found that local capability is essential to inclusive business model formulation; enterprises show different properties when they build inclusive business model; entrepreneur guanxi affects the formulation of inclusive business model and moderates the effect that local capability has on inclusive business model formulation. However, there exists difference between the affecting mechanisms.The conclusions bridge the gap in this domain, and also have some management implications for entrepreneurs.
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