London Business School research has the potential to lift people out of poverty. Read about three incredible business ideas transforming people’s live.

1. THREE INCREDIBLE IDEAS
TRANSFORMING LIVES
TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
The impact of business research on people in the developing world

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
RAISING PEOPLE’S PROSPECTS
By some estimates, half of the world’s
poor make a living as microentrepreneurs
in developing countries. And around
one-third* of the world’s population,
most living in developing countries, lack
access to essential medicines due to
inequalities in healthcare.
*Global Health Progress

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
WHY THE WORLD’S BUSINESS IS OUR BUSINESS
“There are huge opportunities for
business schools to address the
problems of the world’s ‘other’ 99%
of businesses: those beyond the large,
mostly Western, businesses that are
the focus of most business research
and teaching today.”
Rajesh Chandy,
Professor of Marketing; Tony and Maureen Wheeler Chair in Entrepreneurship;
Academic Director, Deloitte Institute for Innovation and Entrepreneurship

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
INVESTING IN MARKET EFFICIENCIES, RAISING
THE PROSPECTS OF INDIA’S FARMERS
Between 2003 and 2010 the World
Bank put US$4.2 billion into improving
information and communication technology
infrastructures in the developing world.
But there was little evidence to show this
led to more efficient markets and increased
prosperity.
RESEARCH IDEA 1
THE CHALLENGE

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
“Choosing to grow something that is perishable is
risky. Having better price information can reduce
the risk.
“If you are helping people get a better price for their
produce, that’s exactly the sort of thing that interests
government and business leaders.”
Kamalini Ramdas,
Professor of Management Science and Operations;
Deloitte Chair in Innovation & Entrepreneurship
THE OPPORTUNITY
RESEARCH IDEA 1
INVESTING IN MARKET EFFICIENCIES, RAISING
THE PROSPECTS OF INDIA’S FARMERS

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
The research looked at the prices of 170 crops across 13
states in India.
It showed that information – price data from multiple local
markets for many types of produce – shared via daily text
messages to farmers, reduces disparity in prices by 12%,
thereby improving the welfare of both farmers and consumers.
THE RESEARCH
RESEARCH IDEA 1
INVESTING IN MARKET EFFICIENCIES, RAISING
THE PROSPECTS OF INDIA’S FARMERS

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
What does the
research mean for
farmers and policy
makers?
Farmers
When information is pushed to them, they can:
¢¢ better plan ahead
¢¢ make higher returns
¢¢ pool resources, such as shared transport
Policy makers
Need to understand that providing both
infrastructure and better information
are crucial.
THE IMPACT
RESEARCH IDEA 1
INVESTING IN MARKET EFFICIENCIES, RAISING
THE PROSPECTS OF INDIA’S FARMERS

8. Malaria is one of Africa’s biggest killers, among
the top five causes of death*. This is despite
there being plenty of medication in many
affected countries.
It is estimated that in 2013, 437,000 children in
Africa died of malaria before their fifth birthday.
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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
IMPROVING ANTI-MALARIAL SUPPLY, SAVING LIVES
*World Malaria Report 2014
RESEARCH IDEA 2
THE CHALLENGE

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
IMPROVING ANTI-MALARIAL SUPPLY, SAVING LIVES
The ability to control malaria is
directly affected by delays and
inefficiencies around diagnosis
and distribution. Professor
Jérémie Gallien applies the supply
chain science to global health
delivery systems.
“I realised my research work
in private sector supply chain
analytics could prove useful.
“The agenda of analysing global
health systems will likely occupy the
rest of my career.”
Professor Jérémie Gallien,
Associate Professor of Management
Science and Operations
THE OPPORTUNITY
RESEARCH IDEA 2

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
IMPROVING ANTI-MALARIAL SUPPLY, SAVING LIVES
Research covered 16 of the 72 district pharmacies
receiving medicine from a central warehouse.
Districts sent drugs to 1,500 smaller health centres.
The results proved that inventory control and
transportation planning was the biggest problem
– in essence, supply chain management.
THE RESEARCH
RESEARCH IDEA 2

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
IMPROVING ANTI-MALARIAL SUPPLY, SAVING LIVES
The research identified
the underlying causes
of local shortages and
waste – and used supply
chain science to improve
distribution.
The project prompted development of a new
inventory system known as eZICS, involving:
¢¢ Zambia’s Ministry of Health
¢¢ Medical Stores Limited
¢¢ IBM
¢¢ Crown Agents
¢¢ World Bank
eZICS
THE IMPACT
RESEARCH IDEA 2

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
Almost 80% of the extremely poor
live in South Asia and Sub-Saharan
Africa. Jobs are scarce and many must
make a living by starting their own
businesses – but they often lack
basic skills to help those businesses
prosper and grow.
EDUCATING SOUTH AFRICA’S MICRO-
ENTREPRENEURS, INVESTING IN LIVELIHOODS
RESEARCH IDEA 3
THE CHALLENGE

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
Professor Rajesh Chandy
and his colleagues* asked:
could access to better
business skills yield better
results? And, do different
skills have different
performance outcomes?
“For most of the world’s poor, micro-
entrepreneurship is the only way to
eke out a living.
“If initiatives to remove the biggest
impediments confronted by micro-
entrepreneurs are successful, you could
be looking at the wheels of progress
accelerating before your eyes.”
Rajesh Chandy,
Professor of Marketing; Tony and Maureen
Wheeler Chair in Entrepreneurship;
Academic Director, Deloitte Institute for
Innovation and Entrepreneurship
THE OPPORTUNITY
RESEARCH IDEA 3
EDUCATING SOUTH AFRICA’S MICRO-
ENTREPRENEURS, INVESTING IN LIVELIHOODS
*PhD student Stephen Anderson-Macdonald
(LBS PhD 2015, now at Stanford University)
and Bilal Zia (World Bank)

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TRANSFORMING LIVES
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The study involved about 800 micro-
entrepreneurs in Cape Town, South Africa.
It compared three groups to measure
the impact of business skills training on
prosperity, growth, and survival among
micro-entrepreneurs.
The results were striking.
FOR
SALE
THE RESEARCH
RESEARCH IDEA 3
EDUCATING SOUTH AFRICA’S MICRO-
ENTREPRENEURS, INVESTING IN LIVELIHOODS

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
It shows that business skills
make a huge difference to micro-
entrepreneurs. Moreover, the type
of training given leads to different
outcomes. The research forces
policy makers to think differently
about how they target investment.
¢¢ Profitability: their monthly profits
were more than 40% higher
¢¢ Employment and sales: they
hired more staff and had higher
revenues
¢¢ However, the paths to profits
were different:
¢¢ Marketing skills put entrepreneurs in
growth mode: their sales were higher,
and they hired more employees as well.
¢¢ Finance skills put entrepreneurs in
efficiency mode: their costs were
lower, and money was more efficiently
allocated.
¢¢ Marketing skills training is especially
important where the goal is
employment-led growth.
THE IMPACT
RESEARCH IDEA 3
EDUCATING SOUTH AFRICA’S MICRO-
ENTREPRENEURS, INVESTING IN LIVELIHOODS
Compared to the control group, those who received
marketing or finance training saw dramatic
improvements in performance 18 months later:

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TRANSFORMING LIVES
THROUGH ENTREPRENEURSHIP
London Business School research has the
potential to lift people out of poverty.
Find out more about the Deloitte Institute
of Innovation and Entrepreneurship’s work.
Yes, the world’s business is our business.