By Ted London
In the course of the decade, first-generation "Base of the Pyramid" (BoP) ventures targeted totally on "finding a fortune on the BoP" by way of promoting current items to and sourcing customary items from the world's 4 billion poorest humans. lots of those tasks didn't scale, and a few failed outright. yet via that have, the most important classes were discovered. Innovators at the moment are succeeding--thanks to a extra refined and nuanced process in response to "creating a fortune with the BoP." during this publication, co-editors Ted London, Stuart L. Hart, and different best BoP proposal and perform leaders exhibit tips to observe those second-generation BoP concepts, concepts, and company types. you are going to the best way to construct profitable company ventures, create sustainable company ecosystems, layout new applied sciences with the BoP in brain, or even rework whole sectors via collaborative entrepreneurship. Key classes to be discovered contain Roadmaps for achievement * A roadmap for enterprise improvement * sufferer capital and innovation for the BoP Strategic possibilities * The "Green bounce" and the BoP * Turning BoP wishes into markets powerful Implementation * realizing the BoP on the micro point * Reframing layout for the BoP * Scaling up BoP ventures
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Extra info for Next Generation Business Strategies for the Base of the Pyramid: New Approaches for Building Mutual Value
Com INTRODUCTION • CREATING A FORTUNE WITH THE BASE OF THE PYRAMID 9 cost, complexity, and unfamiliarity of transitioning to the formal economy, most transactions and business activities conducted by the poor are likely to remain in the informal economy, at least for the foreseeable future. This suggests that the base of the pyramid is the socioeconomic segment that primarily lives and operates their local enterprises in the informal economy and often has annual per capita income of less than $3,000 in PPP.
BoP venture leaders also must embrace the perspective that success at each of these three stages is grounded in demonstrating and enhancing mutual value. When based on creating a fortune with the BoP, venture development can generate economically viable enterprises that also enhance the quality of life and respect the natural environment in BoP communities. com CHAPTER 1 • BUILDING BETTER VENTURES WITH THE BASE OF THE PYRAMID 21 leadership team must commit to continually assessing the value created and exploring opportunities for improvement as the venture moves through the designing, piloting, and scaling stages.
Few would support the notion that an increase in an individual’s annual income from $2,999 to $3,001 has a material impact on that person’s state of poverty or whether or not they are considered part of the BoP socioeconomic demographic. Few would also support the idea that a business venture should stop serving a person if his or her income moves above some predetermined poverty line. Calculating a specific market size is therefore fraught with difficult-to-defend assumptions and questionable attempts at pseudoprecision.