Inclusive business models dominate current development policy and practices aimed at addressing food and nutrition insecurity among smallholder farmers. Through inclusive agribusiness, smallholder food security is presumed to come from increased farm productivity (food availability) and income (food access). Based on recent research, the focus of impact assessments of inclusive business models has been limited to instrumental aspects, such as the number of farmers supported, the training provided, and immediate farm outcomes, namely revenue. Furthermore, the assessments limit their scope to participating smallholders, while overlooking other community members. With respect to food and nutrition security, there is no acknowledgement of the diverse household needs that compete with the food requirements with regard to the multi-dimensional nature of poverty. Focusing on recent studies and reviews on the contribution of inclusive business initiatives to smallholders' livelihoods and food security, the present review adopts a food systems approach for broader knowledge and insight analysis. It re-emphasizes that a food systems approach that provides a systemic and broader way of thinking about and working on food issues is critical for development initiatives aimed at ensuring that every person can meet their food and nutrition needs. © 2021 by the authors. Licensee MDPI, Basel, Switzerland.