Charity Cannot Solve Poverty November 1, 2015@ Marcus Evans PWM Summit Kuala Lumpur

2 Trillion Dollars

“Charitable gifts from abroad can distort developing markets and undermine local businesses by creating an entirely unsustainable aid-based economy.”

1,000,000 Shirts

"Share the wealth, share your shirts; we're going to change the world.“

–Jason Sadler

Buy 1, Give 1

“Toms isn’t designed to build the economies of developing countries. It’s designed to make western consumers feel good.”

Base of the Pyramid (BoP)

BoP is a source of untapped entrepreneurial opportunity

• 4 billion people living in emerging

economies.

• Combined purchasing power of $5 trillion. • 71.4% of the BoP population live in Asia

BoP by geography

Estimated Market Size by Sector •Food: $2,895 billion

•Energy: $433 billion

•Housing: $322 billion

•Transformation: $179 billion

•Health: $158 billion

•ICT: $51 billion

•Water: $20billion

Opportunities at the BoP Basic Needs and Services of BoP markets • Food & Nutrition: fortified food • Health care: mHealth • Water: filtration Systems • Sanitation: toilets • Energy: solar lamps • Housing: winter homes

Other Products and Services • Education: MOOC • Financial services: micro-finance • Entertainment: movies • ICT: cellphones • FMCG: soaps

ICT

Financial Services

Housing Water

Food & Nutrition

FMCG

Health Care

Sectors

Energy Sanitation

Challenges at the BoP Changing consumer’s behavior

◦ Resistance of new products and services

◦ Greater the novelty = greater the disruption

Rethinking the way products are made and delivered to customers

◦ Undeveloped market infrastructure

◦ Lower price points

◦ Rural markets

Success Models

BRAC •Microfinance: $1 billion a year

•Universities and Hotels

•Livestock and Farms

•Packaging factories

•mHealth services

•Theatres

•Sanitation products

•Livelihood and empowerment programs

Indicators for a good social enterprise •Financial Profitability • Maximization/Optimization of profits

• Business-oriented team

• Sustainability Plan

•“non-traditional” indicators • Innovation

• Adaptability

• Social impact

• Social Entrepeneur

• Demand-driven

Investor Support

Capital Investments

Non-financial Investments

Realistic Expectations

Align goals with SE

Enable Partnerships

Flexibilty

Proven Models and SEs

BoP HUB

BoP HUB Integrated Delivery Services: 4 pillars

Faster Easier

Cheaper Better

products and services, to cut wastages and

shrink learning curves

BoP Convex 2016

Convention

Conference Programme

Exclusive Match Making

Expo

Exhibition Hall Experience

Transformation

Ashoka Globalizer

SaniShop Cambodia - 2011 More than selling toilets

•Expert designed and engineered product

•Identification of low-cost material suppliers

•Costs cutting by creating local partnerships

•Tapping onto the entrepreneur spirits of the local community

•Aspirational marketing

Quick Facts

Incubation

• 2011

• SaniShop Cambodia

Franchise

• 2013

• Develop franchise model

Replication

• Present

• India, Mozambique

• Future: Thailand, Pakistan

BoP Accelerator

JV Social Enterprise

BoP HUB

MNC Funders

• Convener • Business Development &

Strategy • BoP HUB network • Base of the Pyramid expertise

• Financial Equity • Sweat Equity

• Impact Investors • Governments • Foundations • Social Entrepreneurs

BoP HUB will fill all the gaps for MNCs who are trying to

successfully enter the BoP

Fortified Rice - Nutrition

JV Social Enterprise

BoP HUB

MNC Funders

To scale and accelerate rice fortification in the BoP market

Completion 2017 BOP HUB Design Center 65,000 sq ft

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For more information about the marcus evans investments summit series:

investmentseries@marcusevanscy.com