Microfinance is now mainstream. Muhammed Yunus' Grameen model has been adopted by everyone from soccer moms (Kiva) to global financial institutions (JP Morgan, Goldman Sachs). Now, investors, social entrepreneurs and microfinance institutions are looking to expand their reach beyond microloans. Creative individuals and corporations are leveraging microfinance supply chains to provide market services for the poor Ð including education and health initiatives.
Many corporations and individuals are belatedly waking up to the opportunities that lay at the ÒBase of the Pyramid BoP the billions of potential customers in the developing world who have been traditionally excluded from markets. The traditional marketing wisdom assumed that BoP customers did not have the means or will to purchase branded products. This has been proven categorically false.
International trade, globalization and the revolution in communications technology have opened the doors to these potential customers. Microfinance is the original 'proof of concept,' and now that investors know that market mechanics apply to poor consumer, BoP is taking off. Microfinance and beyond strategies promote universal access. It is time to make the benefits of the marketplace a global phenomenon.
SoCap08 will explore this new target market and how producers can access it. The dialogue will encompass microfinance supply chain issues, marketing campaigns and international branding. SoCap08 will consider:
- How can companies overcome the supply chain difficulties inherent in the developing world?
- How can we leverage the benefits of microfinance to include other services?
- How do these strategies fit in with existing operations?
- What are the potential risks/returns for expanding beyond MFIs?
Microfinance is a demonstrable example of successful business and social sector integration. The question becomes: how do we translate existing successes into a more expansive picture? Participants will examine the coming opportunities to expanding micro-services, including the BRIC economies and an economically vibrant Africa, and interact with a host of microfinance and BoP pioneers who have successfully integrated this marketing strategy into their overall business plan. Increasing access to market services benefits both business and consumers. The opportunities at the base of the pyramid will not be ignored.