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.

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 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

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

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

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

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

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

Business Model Examples HealthStore Foundation, Kenya Smart Communications, Philippines Prodem FFP, Bolivia Many businesses already serve the BOP

HealthStore Foundation, Kenya

Smart Communications, Philippines

Prodem FFP, Bolivia

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

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

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

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 Entrepreneurship May 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

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