Barriers exist in providing goods and services to the poorest populations. Low profit margins discourage the private sector from pursuing these markets. This leads to the majority of services being channeled through government.
However, opportunities do exist for the private sector which has great knowledge and resources. The volume of available capital encourages serving bottom-of-the-market populations. Through social impact investment companies can dedicate a portion of their capital to positively impact these populations.
Key considerations for successful efforts are described in the article. When companies align social and financial goals, they can focus on technologies that are profitable and socially beneficial. Business models that provide less expensive versions of services are also key. And ensuring that the company's workforce can innovate and is interested in solving the problems of bottom-of-the-pyramid consumers. Focusing on companies that have achieved these goals can provide a model and incentive for others.
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