“A profit-seeking business whichprovides products and services whichimprove lives of low income people.”What is Impact Business?>Click to learn more
Did you know?The global distribution of income‘Few people withhuge income’...or middle classSome people with‘good’ incomeHuge amount ofpeople with lowincomegeneration
Traditional BusinessMost companiesprovide productsand service to thepeople in the toplayersOver to you:Think of someexamples of brandsand products – whoare their customers?
What is Base of the Pyramid?Four billion people in theworld are part of the “Baseof the Pyramid” and live onless than 4 USD per day. (*)Over to you:Why do few businessesfocus on these 4 billionpeople as theircustomers?(*) There are different ways of measuring the BoP, read more at for examplehttp://web.mit.edu/idi/idi/n4b_executive_summary_graphics.pdf
An Impact Businessfocusses on providingbasic needs to the BOPHuge business potential toprovideo Educationo Healthcareo Housing and Infrastructureo Energy and othertechnologieso Financial Services
An Impact Business is accessibleHow do reach yourcustomer?o Distribution Modelo Languageo Customerunderstanding of theproductIs the productaffordable to the Baseof the Pyramid?
An Impact Business ispermanent and self-sustainableo Do yougeneraterevenue inthe same wayas you createimpact?o What is yourcompetitiveadvantage?
An Impact Business is scalableo It addresses a need experienced by asignificant number of peopleo Potential toexpand tonewmarketsand attractfurtherinvestment
Impact Business is different fromSocial organizations that generate income – when the incomegeneration is not inherently linked to the way the organizationcreates impact, but is rather a financial mechanism for enabling thesocial programs.Inclusive business – when underprivileged people are included inthe production chain, but the final product/service does not initself serve low income populations (for example, fair tradeorganizations whose goods are sold to customer at the top of theeconomical pyramid).Green business – when organizations have an environmental, butnot a clear social impact.Traditional companies targeting the base of pyramid – whentraditional companies offer reduced pricing or easier paymentconditions to low income people, but do not make any otherchanges to their business model to facilitate the customer’simproved quality of life.
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