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Social issues have become economic issues, and it is now possible (even compelling) for entrepreneurs to find ways to meet both objectives in ways that are financially and socially rewarding.
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The Next 4 Billion
A Social and Entrepreneurial Challenge
Has capitalism benefitted most of the people on this planet?
30,000 children dying every day from starvation
40% of the world’s 6.5 billion people live in poverty (up 36% from 1981)
16.7% live in extreme poverty
The answer is NO.
The Bottom of the Pyramid
Like the tip of an iceberg, the opportunity remains invisible to the corporate world
C.K. Prahalad & Stuart Hart
The Next 4 Billion
The BOP market = $5 trillion global consumer market of 4 billion people
Asia is world’s largest BOP market: 2.86 billion people
Significant unmet needs across various sectors Food Healthcare ICT …
BOP penalty
Hidden purchasing power
Social Issues, Economic Issues
Businesses increasingly operate amidst social challenges – armed conflict, cultural disputes, poverty, environmental issues
Corporate and social misalignments are costly Diamond conflicts Oil & Gas companies
Internal pressure to “make a difference” Employees Shareholders
Social issues ARE economic issues
A Challenge to Entrepreneurs
Large market, mostly untapped
Multiple sectors
Right here in Asia (and Africa too)
Make a difference!
Businesses have the right combination of technology, resources and global reach
Businesses today are the only entities that possess the necessary combination required to improve the lives of 4 billion people in the BOP –
Stuart Hart
Business Model Examples
HealthStore Foundation, Kenya
Smart Communications, Philippines
Prodem FFP, Bolivia
Many businesses already serve the BOP
HealthStore Foundation, Kenya
Biz Model: Micro franchising – HealthStore and CFW Shops
Providing income to nurses who operate CFW shops
Providing healthcare services to rural Kenya
Sustainable model
Smart Communications, Philippines
Biz Model: Targeted at the BOP
Telecom in a sachet
Sari-sari store owners, students, roving agents
Providing employment
Providing ICT services to BOP consumers
Prodem FFP, Bolivia
Biz model: Targeted at BOP consumers and small businesses
Innovative offerings – ATMs for the illiterate, low fees, broad reach into rural Bolivia
Financial services for rural Bolivia and the BOP
Trusted institution
Social EntrepreneurshipMay 9, 2009
It is true that economic and social objectives have long been seen as distinct and often competing. But this is a false dichotomy; it
represents an increasingly obsolete perspective in a world of
open, knowledge-based competition
– Michael E. Porter and Mark R. Kramer
May 9 – First Social Entrepreneurship Event
