Wednesday 28 November 2012

Supply side perspective on Inclusive Business (1)

  • Lack of basic market infrastructure in needy neighbourhoods
    • ­Lack of business support
    • ­Lack of market information
  • Lack of financial services
    • ­No affordable credits
  • Lack of formal markets
    • ­Informal business based on contacts and not contracts
    • ­“Latin America also features high levels of informality: more than half of its labor force earns a living in the informal economy, …”  (Márquez, P.; Reficco, E. & Berger, G. (2010). Socially Inclusive Business. London: Harvard University.)
  • Lack of transparency
    • ­Very complex nets of supply chains involving many contractors and subcontractors

Wednesday 21 November 2012

Demand side’s perspective on Inclusive Business (2)


“Poverty Penalty"

  • People at the bottom of the pyramid pay more for the products of daily use because they buy from middlemen and not from cheaper big scale corporations.
 
(Source: Prahalad, C. K. (2011, 26th december). The Fortune At The Bottom Of The Pyramid. Retrieved from http://www.fastcompany.com/1746818/fortune-bottom-pyramid)