The Next 4 Billion

The Next 4 Billion: Market Size and Business Strategy at the Base of the Pyramid

Four billion people who live in relative poverty have purchasing power representing a $5 trillion market, according to a report by the IFC, the private sector arm of the World Bank Group, and World Resources Institute (WRI).

The report is the first to measure the size of markets at the base of the economic pyramid using income and expenditure data from household surveys. The analysis is complemented by an overview of business strategies from successful enterprises operating in these markets.

Accurate data on market potential provides a foundation for private sector engagement that can drive down what the report calls the “BOP penalty,” where poorer people often encounter goods and services that are more expensive, of low quality, or difficult or impossible to access. The report seeks to help businesses think more creatively about new business models that meet the needs of these underserved markets.

The report characterizes the base of the pyramid markets by region, country, and sector. Sector markets for 4 billion consumers range from those that are relatively small, such as water ($20 billion) and information and communication technologies ($51 billion), to medium-scale markets such as health ($158 billion), transportation ($179 billion), housing ($332 billion), and energy ($433 billion), to truly large markets, such as food ($2,895 billion).

Get the summary report here

Back on track

After three months of grappling with issues of startup capital and living from the day to day, I am happy to report that we have finaly bagged sufficient startup capital to enable us have a beta product out soon. Over the past two months I have been booking appointments with potential angels in the hope of securing funding. About five of these meetings went realy badly as I believe I was presenting to the wrong crowd of hitherto earth, rain and harvest your produce mentality.

Two however went rather well with one agreeing to pump in capital. The other...one Fleetwood...tok rather long to make up their minds and I got sold on the other proposition. So I am currently devoted entirely to this project forthe next six weeks.Angels need to see progress and results. Keep you posted.