Resources   sector

Mobile Phone Money

Serving the low-income consumer: How to tackle this mostly ignored market

Facing saturation and cutthroat competition in long-established markets, many multinational companies are seeking new markets. Yet until recently, they have largely ignored the more than 5 billion low-income consumers, thinking these consumers have no money to spend or are impossible to reach. Now several companies are disproving these perceptions. ...

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Mobile money: A foundation for food security

“Food security exists when all people, at all times, have physical and economic access to sufficient, safe and nutritious food to meet their dietary needs and food preferences for an active and healthy life.” (FAO, 1996) Let me begin by explaining that I am not a food security expert but ...

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The next 4 billion

In an informal suburb of Guadalajara, Mexico, a growing family is struggling to expand its small house. Help arrives from a major industrial company in the form of construction designs, credit, and as-needed delivery of materials, enabling rapid completion of the project at less overall cost. In rural Madhya Pradesh, ...

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Creating value for all: Strategies for doing business with the poor

The Growing Inclusive Markets Initiative responds to a need for better understanding of how the private sector can contribute to human development and to the Millennium Development Goals. Led by UNDP, the initiative was conceived in 2006 after the success of Unleashing Entrepreneurship: Making Business Work for the Poor—the 2004 ...

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Dialing for development

Microfinance institutions have recognized that poor people lack the capital and financial services that are necessary for economic growth and job creation. And so these organizations have started offering these services to the world's poorest people, unlocking new economic opportunities for borrowers and lenders. Yet until recently, most organizations ...

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Mobile 2.0: M-money for the BoP in the Philippines

This paper explores the reach and use of m-money among the bottom of the pyramid (BoP) in the Philippines using survey data from LIRNEasia’s 2008 Mobile 2.0 surveys. It looks at m-money’s potential and actual use for remittance among internal and external migrant workers and their families. The results are ...

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Designing mobile money services: Lessons from M-Pesa

M-PESA, the Kenyan mobile money service, has seen exceptional growth since its introduction in March 2007. Six million customers have registered with the service, which represents nearly half the customer base of Safaricom, the mobile operator that launched M-PESA. This is a level of penetration in the mobile base that ...

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The financial inclusion assemblage: Subjects, technics, rationalities

This article introduces financial inclusion as a global assemblage of subjects, technics, and rationalities that aim to develop poor-appropriate financial products and services. Microfinance forms the foundation, but also the boundary of the assemblage, which is premised on the assumption that the 2.7 billion poor people in the world who ...

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The potential of mobile remittances for the bottom of the pyramid: Findings from emerging Asia

Purpose – This paper aims to explore the extent to which low-income migrant workers in emerging Asia are aware of and are likely to use mobile phones for remitting money to family members at home. Design/methodology/approach – Data were obtained through a survey of 1,500+ local and overseas migrant workers ...

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Who’s got the phone? Gender and the use of the telephone at the bottom of the pyramid

Many studies conclude that a significant gender divide in access to the telephone exists, particularly in developing countries. Furthermore, women are also said to use telephones in a different manner from men – making and receiving more calls, spending more time on calls and using telephones primarily for ‘relationship maintenance’ ...

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Aid is not the answer

There is an inherent paradox in the debate about poverty alleviation that escapes even the most sophisticated observers in the West. Consider the conventional thinking about China and India: They are seen as a threat to the West. The fear is not only about "exporting well paying U.S. jobs" but ...

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The next four billion: market size and business strategy at the base of the pyramid

Four billion low-income consumers, a majority of the world’s population, constitute the base of the economic pyramid. New empirical measures of their aggregate purchasing power and their behavior as consumers suggest significant opportunities for market-based approaches to better meet their needs, increase their productivity and incomes, and empower their entry ...

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Segmenting the Base of the Pyramid

To succeed, you’ll need to link your commercial interests with your constituencies’ well-being. ...

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Consumption, technology, and development: The “poor” as “consumer”

This article focuses on the case of M-PESA mobile payments service in Kenya. It critically analyzes the assumptions and cultural contradictions that underpin notions of the low-income consumer and their implications in practice for business strategy. The poor-as-consumer model assumes that, in order to target low-income groups, one needs to ...

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Is the Bottom of the Pyramid really for you?

Searching for that pot of gold in the world’s most challenging markets may not be worth your company’s while. Here’s how to make that call. ...

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Good business makes poor customers good customers

Would your company like to add thousands, if not millions, of new customers? Jamie Anderson, Martin Kupp and Sandra Vandermerwe believe that serving the world’s poorest people in developing markets can be both profitable and socially rewarding — if it’s done right. As it turns out, what’s good for business ...

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Filipino entrepreneurs on the Internet: When social networking websites meet mobile commerce

This study explores the evolving landscape of e-commerce in the Philippines. It looks at two information and communication technology (ICT) applications that are being used innovatively by Filipinos: mobile phone-based cash systems and social networking websites to enable small entrepreneurs to venture into e-commerce. The article investigates how these two ...

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