Chapter 1: Building Better Ventures with the Base of the Pyramid: A Roadmap
Ted London, William Davidson Institute & Ross School of Business, University of Michigan
Ted London’s chapter addresses how venture leaders can maximize the chances that their business development efforts in BoP markets will succeed. Which business practices should guide your efforts—and which ones should you be sure to avoid—as your venture moves through the stages of designing, piloting, and scaling? How do you craft initial business models, effectively test these approaches, and create sustainable competitive advantage? Using the perspective of “creating a fortune with the base of the pyramid,” London provides a set of guiding principles (a “roadmap”) that answer these and other critical questions relevant to both existing and start-up BoP ventures.
Chapter 2: Innovation for the BoP: The Patient Capital Approach
Robert Kennedy, William Davidson Institute & Ross School of Business, University of Michigan; and Jacqueline Novogratz, Founder and CEO, Acumen Fund
Co-authors Robert Kennedy and Jacqueline Novogratz explain how social entrepreneurs and “philanthrocapitalists” are changing the BoP landscape by connecting innovative business approaches to “patient capital” money that is expected to generate returns over a longer period than is typical of (say) venture capital.
They identify four types of innovation that are proving critically important to success in operating in BoP markets, and show how a range of enterprises are applying these approaches in the field.