Skip to main content
SpringerLink
Log in

Challenges and Constraints in Building Business Models to Fight Poverty

  • Living reference work entry
  • First Online:
No Poverty

Part of the book series: Encyclopedia of the UN Sustainable Development Goals ((ENUNSDG))

  • 83 Accesses

Definitions

The Base of the pyramid (BOP) market is a large untapped market of products and services that companies provide to a population which live under the poverty threshold. For this reason, this vast population require basic products and services as energy, access to healthcare, education, and consumer goods. The Base of the pyramid (BOP) entrepreneurial approach, then, is defined as a range of business models which are developed by or in partnership with the private sector and specifically designed to target the poorest segments of society as consumers, producers, and entrepreneurs. One of the leading approaches is represented by the social enterprises. Social enterprises are defined as hybrid organizations which aim to achieve societal impact as poverty reduction through profit-making activities These social enterprises are required to build effective business models to provide the products and services to the poor with the aim of poverty alleviation. A business model,...

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Log in via an institution

Institutional subscriptions

References

  • Agarwal N, Chakrabarti R, Brem A, Bocken N (2018) Market driving at Bottom of the Pyramid (BoP): an analysis of social enterprises from the healthcare sector. J Bus Res 86:234–244

    Article  Google Scholar 

  • Amit R, Zott C (2001) Value creation in e-business. Strateg Manag J 22(6/7):493–520

    Article  Google Scholar 

  • Anderson J, Billou N (2007) Serving the world’s poor: innovation at the base of the economic pyramid. J Bus Strateg 28(2):14–21

    Article  Google Scholar 

  • Battilana J, Lee M, Walker J, Dorsey C (2012) In search of the hybrid ideal. Stanf Soc Innov Rev 10(3):50–55

    Google Scholar 

  • BoP Innovation Centre (2019) Base of the pyramid. Retrieved 01 Apr 2020 at: http://BoPinnovationcenter.com/what-we-do/base-of-the-pyramid

  • Calton JM, Werhane PH, Hartman LP, Bevan D (2013) Building partnerships to create social and economic value at the base of the global development pyramid. J Bus Ethics 117(4):721–733

    Article  Google Scholar 

  • Cañeque FC, Hart S (eds) (2015) Base of the pyramid 3.0: sustainable development through innovation and entrepreneurship. Greenleaf Publishing, Sheffield

    Google Scholar 

  • Casadesus-Masanell R, Ricart JE (2011) How to design a winning business model. Harv Bus Rev 89(1/2):100–107

    Google Scholar 

  • Chmielewski DA, Dembek K, Beckett JR (2018) ‘Business unusual’: building BoP 3.0. J Bus Ethics 1–19

    Google Scholar 

  • Ciambotti G, Pedrini M (2019a) Hybrid harvesting strategies to overcome resource constraints: evidence from social enterprises in Kenya. J Bus Ethics 1–20. Online first.

    Google Scholar 

  • Ciambotti G, Pedrini M (2019b) Hybrid-diversified business models in social enterprises: increase revenues with a social mission. In: Academy of management proceedings, vol 2019, no 1. Academy of Management, New York, p 16723

    Google Scholar 

  • Ciambotti G, Sydow A, Sottini A (2019) The strauss energy business model: affordable technology innovation to empower Kenya and light up the world. SAGE, London

    Google Scholar 

  • Ciambotti G, Littlewood D, Sottini A, Nkatha E (2020, forthcoming) Building and scaling social enterprise business models for BoP markets in Kenya. In: Base of the pyramid markets in Africa: innovation and challenges to sustainability. Routledge: London (UK).

    Google Scholar 

  • Cumming D, Johan S, Uzuegbunam I (2020) An anatomy of entrepreneurial pursuits in relation to poverty. Entrep Reg Dev 32(1–2):21–40

    Article  Google Scholar 

  • Davies IA, Haugh H, Chambers L (2019) Barriers to social enterprise growth. J Small Bus Manag 57(4):1616–1636

    Article  Google Scholar 

  • Dembek K, Sivasubramaniam N, Chmielewski DA (2019) A systematic review of the bottom/base of the pyramid literature review: cumulative evidence and future directions. J Bus Ethics 1–18. Online first.

    Google Scholar 

  • Doherty B, Haugh H, Sahan E, Wills T, Croft S (2020) Creating the new economy: business models that put people and planet first. Research Report. White Rose University Consortium.

    Google Scholar 

  • Gebauer H, Haldimann M, Saul CJ (2017a) Business model innovations for overcoming barriers in the base-of-the-pyramid market. Ind Innov 24(5):543–568

    Article  Google Scholar 

  • Gebauer H, Saul CJ, Haldimann M (2017b) Business model innovation in base of the pyramid markets. J Bus Strateg 38(4):38–46

    Article  Google Scholar 

  • Goyal S, Sergi BS, Jaiswal M (2015) How to design and implement social business models for base-of-the-pyramid (BoP) markets? Eur J Dev Res 27(5):850–867

    Article  Google Scholar 

  • Goyal S, Sergi BS, Kapoor A (2017) Emerging role of for-profit social enterprises at the base of the pyramid: the case of Selco. J Manag Dev 36(1):97–108

    Article  Google Scholar 

  • Hahn R, Spieth P, Ince I (2018) Business model design in sustainable entrepreneurship: illuminating the commercial logic of hybrid businesses. J Clean Prod 176:439–451

    Article  Google Scholar 

  • Holt, D., & Littlewood, D. (2017). Waste livelihoods amongst the poor–Through the lens of bricolage. Business Strategy and the Environment, 26(2):253–264

    Google Scholar 

  • Karnani A (2009) Romanticizing the poor harms the poor. J Int Dev 21(1):76–86

    Article  Google Scholar 

  • Khalid RU, Seuring S (2019) Analyzing base-of-the-pyramid research from a (sustainable) supply chain perspective. J Bus Ethics 155(3):663–686

    Article  Google Scholar 

  • Kolk A, Rivera-Santos M, Rufín C (2014) Reviewing a decade of research on the “base/bottom of the pyramid” (BOP) concept. Bus Soc 53(3):338–377

    Article  Google Scholar 

  • Lashitew AA, Bals L, van Tulder R (2020) Inclusive business at the base of the pyramid: the role of embeddedness for enabling social innovations. J Bus Ethics 162(2):421–448

    Article  Google Scholar 

  • Linna P (2013) Bricolage as a means of innovating in a resource-scarce environment: a study of innovator-entrepreneurs at the BOP. J Dev Entrep 18(03):1350015

    Google Scholar 

  • London T, Hart SL (2011) Creating a fortune with the base of the pyramid. In: London T, Hart SL (eds) Next generation business strategies for the base of the pyramid. FT Press, Upper Saddle River, pp 1–18

    Google Scholar 

  • London T, Anupindi R, Sheth S (2010) Creating mutual value: lessons learned from ventures serving base of the pyramid producers. J Bus Res 63(6):582–594

    Article  Google Scholar 

  • Mair, J., & Marti, I. (2006). Social entrepreneurship research: A source of explanation, prediction, and delight. Journal of world business, 41(1):36–44

    Google Scholar 

  • McMullen JS, Bergman BJ Jr (2018) The promise and problems of price subsidization in social entrepreneurship. Bus Horiz 61(4):609–621

    Article  Google Scholar 

  • Mohr JJ, Sengupta S, Slater SF (2012) Serving base-of-the-pyramid markets: meeting real needs through a customized approach. J Bus Strateg 33(6):4–14

    Article  Google Scholar 

  • Nahi T (2016) Cocreation at the base of the pyramid: reviewing and organizing the diverse conceptualizations. Organ Environ 29:416–437

    Article  Google Scholar 

  • OECD/EU (2017) Boosting social enterprise development: good practice compendium. OECD Publishing, Paris. Retrieved 17 Apr 2020 at: http://www.oecd.org/publications/boosting-social-enterprise-development-9789264268500-en.htm

    Book  Google Scholar 

  • Oxfam (2017) An Economy for the 99%: it’s time to build a human economy that benefits everyone, not just the privileged few. Oxfam GB, Oxford. Retrieved 10 Apr 2020 at: https://www.oxfam.org/en/research/economy-99

    Google Scholar 

  • Prahalad CK (2009) The fortune at the bottom of the pyramid, revised and updated 5th anniversary edition: eradicating poverty through profits. FT Press, New Jersey (USA).

    Google Scholar 

  • Prahalad CK, Hammond SL (2002) Serving the world’s poor, profitability. Harv Bus Rev 80(9):48–57

    CAS  Google Scholar 

  • Prahalad CK, Hart SL (2002) Fortune at the bottom of the pyramid. Strategy + Business 26:2–14

    Google Scholar 

  • Reficco E, Márquez P (2012) Inclusive networks for building BOP markets. Bus Soc 51(3):512–556

    Article  Google Scholar 

  • Saebi, T., Foss, N. J., & Linder, S. (2019). Social entrepreneurship research: Past achievements and future promises. Journal of Management, 45(1):70–95

    Google Scholar 

  • Salvado JC (2011) Social enterprise models and SPO financial sustainability: the case of BRAC. J Soc Entrep 2(1):79–98

    Google Scholar 

  • Santos F, Pache AC, Birkholz C (2015) Making hybrids work: aligning business models and organizational design for social enterprises. Calif Manag Rev 57(3):36–58

    Article  Google Scholar 

  • Seelos C, Mair J (2005) Social entrepreneurship: creating new business models to serve the poor. Bus Horiz 48(3):241–246

    Article  Google Scholar 

  • Seelos C, Mair J (2007) Profitable business models and market creation in the context of deep poverty: a strategic view. Acad Manag Perspect 21(4):49–63

    Article  Google Scholar 

  • Shepherd DA, Parida V, Wincent J (2020) Entrepreneurship and poverty alleviation: the importance of health and children’s education for slum entrepreneurs. Entrep Theory Pract 1042258719900774

    Google Scholar 

  • Si S, Ahlstrom D, Wei J, Cullen J (2020) Business, entrepreneurship and innovation toward poverty reduction. Entrep Reg Dev 32(1–2):1–20

    Article  Google Scholar 

  • Simanis E, Hart SL (2008) The base of the pyramid protocol: toward next generation BoP strategy (version 2.0). Cornell University, Ithaca

    Google Scholar 

  • Simanis E, Hart S, Enk G, Duke D, Gordon M, Lippert A (2005) Strategic initiatives at the base of the pyramid. A protocol for mutual value creation. Racine: WI.  

    Google Scholar 

  • Sottini A, Ciambotti G, Sydow A (2020a) How to scale social innovation in the bottom of pyramid market: the story of Kenya’s innovation eye centre. SAGE, London

    Book  Google Scholar 

  • Sottini A, Ciambotti G, Sydow A (2020b) Totohealth in East Africa: reaching financial sustainability in the bottom of pyramid healthcare market. SAGE, London

    Book  Google Scholar 

  • Teece DJ (2010) Business models, business strategy and innovation. Long Range Plan 43(2–3):172–194

    Article  Google Scholar 

  • Teece DJ (2018) Business models and dynamic capabilities. Long Range Plan 51(1):40–49

    Article  Google Scholar 

  • Werhane PH, Newton LH, Wolfe R (2020) Alleviating poverty through profitable partnerships 2e: globalization, markets, and economic well-being. Routledge

    Google Scholar 

  • World Bank (2018) Poverty and shared prosperity 2018: piecing together the poverty puzzle. World Bank, Washington, DC

    Google Scholar 

  • Yunus M, Moingeon B, Lehmann-Ortega L (2010) Building social business models: lessons from the Grameen experience. Long Range Plan 43(2–3):308–325

    Article  Google Scholar 

  • Yunus M, Sibieude T, Lesueur E (2012) Social business and big business: innovative, promising solutions to overcome poverty? Field Actions Sci Rep J Field Actions 4, 68–74.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Università Cattolica del Sacro Cuore (Milan), Milan, Italy

    Giacomo Ciambotti

Authors
  1. Giacomo Ciambotti
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Giacomo Ciambotti .

Editor information

Editors and Affiliations

  1. European School of Sustainability, Hamburg University of Applied Sciences, Hamburg, Hamburg, Germany

    Walter Leal Filho

  2. Center for Neuroscience & Cell Biology, University of Coimbra, Coimbra, Portugal

    Anabela Marisa Azul

  3. Faculty of Engineering and Architecture, Passo Fundo University Faculty of Engineering and Architecture, Passo Fundo, Brazil

    Luciana Brandli

  4. HAW Hamburg, Hamburg, Hamburg, Germany

    Amanda Lange Salvia

  5. Istinye University, Istanbul, Turkey

    Pinar Gökcin Özuyar

  6. International Centre for Thriving, University of Chester, Chester, UK

    Tony Wall

Section Editor information

  1. Business School, Universidade Positivo - UP, Curitiba, Paraná, Brasil

    Fernanda Frankenberger

  2. Business School, PUCPR, Curitiba, Paraná, Brasil

    Fernanda Frankenberger

Rights and permissions

Reprints and permissions

Copyright information

© 2020 Springer Nature Switzerland AG

About this entry

Check for updates. Verify currency and authenticity via CrossMark

Cite this entry

Ciambotti, G. (2020). Challenges and Constraints in Building Business Models to Fight Poverty. In: Leal Filho, W., Azul, A.M., Brandli, L., Lange Salvia, A., Özuyar, P.G., Wall, T. (eds) No Poverty. Encyclopedia of the UN Sustainable Development Goals. Springer, Cham. https://doi.org/10.1007/978-3-319-69625-6_114-1

Download citation

  • DOI: https://doi.org/10.1007/978-3-319-69625-6_114-1

  • Received:

  • Accepted:

  • Published:

  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-69625-6

  • Online ISBN: 978-3-319-69625-6

  • eBook Packages: Springer Reference Earth and Environm. ScienceReference Module Physical and Materials ScienceReference Module Earth and Environmental Sciences

Publish with us

Policies and ethics

Search

Navigation