The Base of the Pyramid (BoP) refers to the largest and also the poorest population worldwide—over 4 billion people living on less than $10 a day. In addition, they carry the burden of a “poverty penalty” and are often forced to pay more for lower quality basic goods and services due to market inefficiencies in production and distribution.
Efforts have been made to better incorporate the BoP into the global marketplace to the benefit of all involved. For the past decade, there has been substantial growth in BoP ventures, provision of quality services to the poor, as well as investor interest in the market. But there have been significant hurdles as well, affecting venture sustainability, scalability and success. To date, the BoP is still a dysfunctional marketplace without efficient infrastructure and capacity to absorb investment. Even the “best practice” models are limited, often working in industrial silos or only operating in a specific geographic region.
Despite these challenges, the BoP represents a $5 trillion dollar opportunity. Tapping its markets would mean improving the quality of life for those most in need by empowering 4 billion economically active consumers, producers, employees, and entrepreneurs. That is the objective of BoP Hub.