The Next 4 Billion A Social and Entrepreneurial Challenge
Has capitalism benefitted most of the people on this planet? <ul><li>30,000 children dying every day from starvation </li>...
The Bottom of the Pyramid Like the tip of an iceberg, the opportunity remains invisible to the corporate world C.K. Prahal...
The Next 4 Billion <ul><li>The BOP market = $5 trillion global consumer market of 4 billion people </li></ul><ul><li>Asia ...
Social Issues, Economic Issues <ul><li>Businesses increasingly operate amidst social challenges – armed conflict, cultural...
A Challenge to Entrepreneurs <ul><li>Large market, mostly untapped </li></ul><ul><li>Multiple sectors </li></ul><ul><li>Ri...
Business Model Examples <ul><li>HealthStore Foundation, Kenya </li></ul><ul><li>Smart Communications, Philippines </li></u...
HealthStore Foundation, Kenya <ul><li>Biz Model: Micro franchising – HealthStore and CFW Shops </li></ul><ul><li>Providing...
Smart Communications, Philippines <ul><li>Biz Model: Targeted at the BOP </li></ul><ul><li>Telecom in a sachet </li></ul><...
Prodem FFP, Bolivia <ul><li>Biz model: Targeted at BOP consumers and small businesses </li></ul><ul><li>Innovative offerin...
Social Entrepreneurship May 9, 2009 <ul><li>It is true that economic and social objectives have long been seen as distinct...
 
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Next 4 Billion

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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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Next 4 Billion

  1. 1. The Next 4 Billion A Social and Entrepreneurial Challenge
  2. 2. Has capitalism benefitted most of the people on this planet? <ul><li>30,000 children dying every day from starvation </li></ul><ul><li>40% of the world’s 6.5 billion people live in poverty (up 36% from 1981) </li></ul><ul><li>16.7% live in extreme poverty </li></ul>The answer is NO.
  3. 3. The Bottom of the Pyramid Like the tip of an iceberg, the opportunity remains invisible to the corporate world C.K. Prahalad & Stuart Hart
  4. 4. The Next 4 Billion <ul><li>The BOP market = $5 trillion global consumer market of 4 billion people </li></ul><ul><li>Asia is world’s largest BOP market: 2.86 billion people </li></ul><ul><li>Significant unmet needs across various sectors </li></ul><ul><ul><li>Food </li></ul></ul><ul><ul><li>Healthcare </li></ul></ul><ul><ul><li>ICT </li></ul></ul><ul><ul><li>… </li></ul></ul><ul><li>BOP penalty </li></ul>Hidden purchasing power
  5. 5. Social Issues, Economic Issues <ul><li>Businesses increasingly operate amidst social challenges – armed conflict, cultural disputes, poverty, environmental issues </li></ul><ul><li>Corporate and social misalignments are costly </li></ul><ul><ul><li>Diamond conflicts </li></ul></ul><ul><ul><li>Oil & Gas companies </li></ul></ul><ul><li>Internal pressure to “make a difference” </li></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Shareholders </li></ul></ul>Social issues ARE economic issues
  6. 6. A Challenge to Entrepreneurs <ul><li>Large market, mostly untapped </li></ul><ul><li>Multiple sectors </li></ul><ul><li>Right here in Asia (and Africa too) </li></ul><ul><li>Make a difference! </li></ul><ul><li>Businesses have the right combination of technology, resources and global reach </li></ul>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
  7. 7. Business Model Examples <ul><li>HealthStore Foundation, Kenya </li></ul><ul><li>Smart Communications, Philippines </li></ul><ul><li>Prodem FFP, Bolivia </li></ul>Many businesses already serve the BOP
  8. 8. HealthStore Foundation, Kenya <ul><li>Biz Model: Micro franchising – HealthStore and CFW Shops </li></ul><ul><li>Providing income to nurses who operate CFW shops </li></ul><ul><li>Providing healthcare services to rural Kenya </li></ul><ul><li>Sustainable model </li></ul>
  9. 9. Smart Communications, Philippines <ul><li>Biz Model: Targeted at the BOP </li></ul><ul><li>Telecom in a sachet </li></ul><ul><li>Sari-sari store owners, students, roving agents </li></ul><ul><li>Providing employment </li></ul><ul><li>Providing ICT services to BOP consumers </li></ul>
  10. 10. Prodem FFP, Bolivia <ul><li>Biz model: Targeted at BOP consumers and small businesses </li></ul><ul><li>Innovative offerings – ATMs for the illiterate, low fees, broad reach into rural Bolivia </li></ul><ul><li>Financial services for rural Bolivia and the BOP </li></ul><ul><li>Trusted institution </li></ul>
  11. 11. Social Entrepreneurship May 9, 2009 <ul><li>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 </li></ul><ul><li>– Michael E. Porter and Mark R. Kramer </li></ul>May 9 – First Social Entrepreneurship Event

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