Eradicating poverty through enterprise.karnani (1)
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The document discusses the role of the private sector in poverty eradication. It analyzes strategies that view the poor as consumers or producers and argues they often exploit the poor. While employment creation and access to affordable products are positives, companies frequently lower quality or promote harmful products. A balanced approach is needed that also strengthens public services, empowerment, and protections for the vulnerable.
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4 Inclusive Business
The document discusses how the private sector can alleviate poverty through inclusive business models. It argues that selling products and services to the poor can be profitable while also helping eradicate poverty. However, it notes there are several challenges, such as high costs of serving impoverished markets and the poor's inability to afford high quality goods. The document concludes that poverty alleviation requires both lowering prices for goods the poor consume and raising their incomes, such as by incorporating them into business value chains or providing access to microfinance.
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Poverty
Poverty refers to a lack of material possessions or money and can be defined as the state of being extremely poor or inferior in quality or amount. There are different types of poverty including relative poverty, situational poverty, generational or chronic poverty, and absolute poverty. Some ways to reduce poverty include creating more employment opportunities, minimizing corruption, improving rural sectors, controlling population growth, providing quality education, and abolishing child labor. Addressing poverty requires government schemes and resolutions across many areas.
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3 Bottom of the Pyramid
The document discusses the concept of "fortune at the bottom of the pyramid" which refers to the potential market opportunity among the 4 billion people living in poverty on less than $2 per day. C.K. Prahalad argues that multinational corporations should view this population not as victims to be aided but as potential entrepreneurs and consumers, representing a huge business opportunity if companies develop affordable products and services for them. Serving these impoverished markets requires collaboration between private enterprises, development agencies, local governments, and civil society organizations.
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Next 4 Billion
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.
Ching Yee Fu: Next 4 Billion
The document discusses the opportunity for businesses to serve the needs of the 4 billion people in the bottom of the pyramid (BOP) market, which represents a $5 trillion global consumer market. It provides examples of business models that successfully target the BOP in sectors like healthcare, telecommunications, and financial services. These examples demonstrate that businesses already serving the BOP employ sustainable models that provide income opportunities and access to important services for low-income communities.
Educated unemployment
The document discusses the causes and effects of educated unemployment in India. Some of the key causes include a defective education system that does not prepare students for available jobs, a lack of industrial and technical training programs, and a lack of cottage industries in rural areas. Effects of educated unemployment include an increase in criminal activities, a decline in living standards and health, and depression among unemployed youth. Suggested remedies include expanding vocational training programs, increasing industrialization and rural development to generate more jobs, and providing career guidance and loans to help unemployed youth start small businesses.
Fortune at the bottom of pyramid
Usually the companies in the richer world and the products which comes to the market are usually focused on Tier 1, 2 & 3 markets. Tier 4 markets i.e Bottom of Pyramid Markets are usually devoid of products. Many Companies like Hindustan Unilever, Aravind Eyecare, Narayan Hrudiyalaya, Jaipur Foot, Eid Parry, Lijjat Papad, ITC Ltd, etc have came up with the products that are specially made for BOP markets. The market volume is very high as more than 4000 million people in the world are below $2 annual per capita income, Even 46% of the Indian population live below the poverty line.......This people cannot afford to the products available for the tier 1,2 & 3 markets as they cannot afford them..... Thus a greater potential occurs at the BOP market.....Catering BOP market doesn't mean catering 'sachets" to them. Making such products which are affordable by these markets...and thus making profits..... Instead enabling them to purchase the product by enhancing the buying power of the consumers..........Reverse Innovation can bring upon the change to the BOP markets.......
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