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GUARDIAN LIVE CHAT: How do base of the pyramid businesses scale up?

Studio Elias

When global income distribution is plotted on a graph it looks like a pyramid. Some 32m individuals (just 0.7% of the world's population) sit at the top representing 41% of global wealth, while at the very base of the pyramid are 3.2bn individuals representing just 3% of global riches.

Inclusive, or base of the pyramid businesses serve this significant cohort, and many have met with success. Examples include Vodafone's mobile phone based money service Mpesa or L'Occitane, which works in Burkina Faso to support traditionally produced shea butter. But where these inclusive business models have managed to scale up, many others have not been so successful.

Scaling inclusive business initiatives means driving profitable commercial growth as well as reaching a greater number of people at the base of the pyramid. Businesses need to see a return on investment in order to repay initial costs, turn a profit and move a proven model to scale.

Several factors feed into the scalability of base of the pyramid initiatives. A company's ability to find and work with the right partners is key, as is its success in developing or tapping into demand for a product or service, and its understanding of the local context. Businesses must have an understanding of how to use technology effectively and, importantly, how to access and mobilise finance. It's also vital they can identify and deal with internal barriers such as capability gaps.

How do companies go about ensuring they have this understanding and what can be learned from the successes and failures of others?

Join the experts for a live chat

Join us on Wednesday, 5 November at 10am EST/3pm GMT for a live chat with a panel of experts to discuss questions such as:

  • How can companies forge valuable partnerships that help embed their business model?

  • What is the best way to work with governments and local authorities to get support?

  • Are there lessons when it comes to attracting the finance needed to develop successful and scalable BoP business models?

  • How do companies scale up their BoP models while retaining the local context necessary for their original success?

  • How do businesses replicate their business models in a way that makes sense geographically? Which parts of their business model can be replicated and how far do they need to start again?

  • Can technology help companies reach scale?

  • What lessons can be learned from the successes and failures of companies that have attempted to scale their BoP business models?

Panel