Economists are largely interested in the business models implemented by large multinationals in their bid to acquire a toehold at the bottom of the pyramid. They suggest that businesses, in order to share a great role in the fight against poverty, should redefine their whole approach when entering emerging market. It is emphasized that business managers must refocus their efforts on business nuts and bolts such as market creation, profits and collaborations with local distribution network experts.

Unluckily, business education programs keep on ignoring the poorest customers in the world. Instead, charity organizations are the ones to assume the role of meeting the needs of the poor people. So what is exactly the problem? When the job is singlehandedly turned over to the hands of NGOs, development and research become limited due to lack of funding. The lack of interesting is quite surprising, considering the huge marketing potential representing half of the world’s population. How come then that companies are still trying hard to get a toehold at the bottom of the pyramid?

Acclimatizing Profitability

According to Bernard Garrette, a professor of Strategy and Business Policy, the established forms of interventions to respond to the needs of the poor people are quite small due to the zone of contact dominated by NGOs. Hence, with the lack of interest and actions to turn a profit, there would be no dynamic forces that can lead to progress and change in the lives of the poor people. Garrette further suggests that the most dynamic response for the poor people are those that provide a great return on invested capital.

Ditch Western-Style Marketing

Forgetting the western style of marketing does not necessarily mean that private businesses are more suited than NGOs to take on markets at the bottom of the pyramid. It is claimed that companies that stick to the classic western style of marketing only adapt and they don’t recreate their business model. As a result, no established markets are created at the bottom of the pyramid. According to Garrette, the trick is to create a market where there is a necessity. It means that businesses must gain a sensitive understanding of people’s behavior and ask relevant questions like, “How do the poor people try to meet their daily needs? “What’s holding them back to being successful”?

Transformational Employment

Creating quality jobs is one of the keys to meeting the needs of the poor people. Recruiting poor people in your roster and giving them proper training and guidance goes a long way for them to meet their needs and their families. Invest in poor people because it’s a win-win situation. They help your business grow and expand. You help them make a significant change in their lives.