6/11/2012

1

Minna Halme

Inclusive innovation for low-income emerging markets

Professor Minna Halme, Aalto University School of Economics, June 8, 2012

Objectives of the training – this session

Minna Halme

6/11/2012

2

Low-income emerging markets (or the Base of the Pyramid)

4 billion people live with less than 5€ (PPP) per day

Minna Halme

Paradoxes

Minna Halme

6/11/2012

3

Inclusive innovation at the BOP

Minna Halme

Making itreal

6

Victims, resilient entrepreneurs or…?

Minna Halme

Making itreal

6/11/2012

4

7

What solutions work?

Minna Halme

Making itreal

Real examples

Initiators range from multinational companies to SMEs, social enterprisesand non-governmental organizations.

Minna Halme

Making itreal

6/11/2012

5

PROBLEM: Subsistence entrepreneurs have too little money or can’t get bank loans.

SOLUTION: MyC4 is a microfinance bank operating through the internet since 2007.

• MyC4 grants loans to small enterprises in African countries • Investors are individuals and organizations in developed

countries. • Each investor can choose the loan recipient, follow

how the enterprise succeeds and can also give advice. • Local ”providers” in Africa screen prominent

entrepreneurs.

REVENUE MODEL: MyC4 charges a 6% interest fee on the loans when they are repaid.

OUTCOME: Over 19,000 investors from 115 countries have invested over €15 million throughthe MyC4 website. Over 8,000 businesses in seven African countries have been funded.

Microfinance over the internet

Making itreal

ITC eChoupal procurement hubs for farmers in India

10

Problem of subsistence farmers: Did not used to get a fair price of their produce in mandis (agricultural marketing centres) due to unfair practices of middlemenProblem of ITC: Did not get good quality commoditiesThe e-Choupal programme links rural farmers via the Internet with buyers of agricultural products like soybeans, wheat and coffee. Effects

Around 4 million farmers have been empowered in 10 states of India where 40,000 villages have 6,500 eChoupalsLet’s see ourselves:

http://www.youtube.com/watch?v=Fx4gukMYTGA

Making itreal

6/11/2012

6

Grundfos Lifelink

PROBLEM: Lack of safe drinking water

SOLUTION: Water systems for rural communities, schoolsand hospitals

It is crucial to develop community ownership

Users pay with mobile phone & pre-paid key fob (RFID Technology).

Local banks participate in financing

Solar panel is power source

Maintenance and repair costs are included in the waterprice

On-line remote monitoring with GSM/GPRS

Quick repair in case of faults

Locals have been trained as repair mechanics

Minna Halme

Makingit real

Largest eye care facility in IndiaMission is to remove needless blindnessMany eye care services, with the cataract lensesurgeries and provision of affordable ophthalmicproducts worldwideLet’s see ourselves: http://www.youtube.com/watch?v=3cjnNPua7Ag

6/11/2012

7

BOP innovation: What lessons to learn?

Halme Jan 18, 2012

Making itreal

Making it real:What can governments and IGOsdo?

Minna Halme

Making itreal

6/11/2012

8

Thank you!

Minna Halme

ProfessorMinna Halme For information: http://management.aalto.fi/en/research/groups/bop/& www.aaltoglobalimpact.org/