Who knows BOP?

If you are a Social Entrepreneur, you are helping people find their way in the global economy for the first time. Many of these people are participating in their national economy for the first time. Social Entrepreneurs may be providing education, venture capital, internet access, or one of many innovative means to help people build their own corporate ladder or find the first few rungs of an existing ladder.

As I stated in my last post, there is an untapped market of 4 billion low income consumers known as the BOP: the Base Of the economic Pyramid. There is an increasing demand for the labor and talents of the BOP, which means that they are beginning to receive money that they will spend on life's necessities. Moreover, many of these people will have money to increase their quality of life, which can be an especially lucrative market at low margin but high volume (see: Wal-Mart.)

If you are fiscally responsible for an enterprise that might be able to serve the demands of the BOP, then you should begin to research the BOP market now. In the near future, you will either compete in this market or miss out on a lot of activity. On the other hand, if you blaze a trail today and reap the return tomorrow, you will have fulfilled your responsibility. You may have even saved your enterprise.

This new global economy is not going to wait for you, it will be filled with nimble, hungry, elusive, and innovative enterprises which will consume your market share while you’re on vacation. While you are making the turn for the back nine or on a retreat, they will be eating your lunch.

How do you enter this enormous market with so many pitfalls and political obstacles? Look for the unreasonable men and women who are already blazing a trail, and step in their tracks. Better yet, ask them to lead you through the minefield. Without metaphors, what I mean to say is that if you find the Social Entrepreneurs and imitate them and/or partner with them, you will be establishing yourself in a market with lucrative potential.

As John Elkington and Pamela Hartigan point out in their book The Power of Unreasonable People the Social Entrepreneurs are going to know the BOP well. They can help you innovate your approach to this market to ensure your success. They can guide you around the political obstacles and help you avoid the pitfalls and dead ends. Best of all, they can help you build a reputation in a market that will initially regard you with suspicion. In fact, the greatest benefit that you can gain from Social Entrepreneurs is their marketing potential. The BOP will probably regard any traditional efforts at marketing with disdain. However, by participating with Social Entrepreneurs and NonGovernmental Organizations (NGO's) who are raising the standard of living for the BOP, you will change the market’s perception of your brand name before you pay a single dime/peso/etc on advertising. If you scratch the back of the BOP, you may find 4 billion people scratching your back in return. Even 1% of that market will be 200 million fingers (4 million people using one hand) on your back.