Conclusions at the Bottom of the Pyramid

The informal market constitutes a significant business investment opportunity; one that a wise investor would do well to recognise. Opportunities in the informal sector rapidly translate into new business models that work for everyone.

Don't be concerned about accusations of exploitation; by its very nature investment acts to lift the poor out of poverty. By reducing costs and increasing efficiency you save the poor time and allow their money to go further. With greater savings they can invest further in their own well-being. This is not charity, it's the way business works.

In conclusion:

• The informal sector is valuable and offers lucrative investment opportunities - don't sacrifice these to the "idea" that poverty requires charity
• Form direct and unconventional trust relationships with community investment groups, stokvels, taxi organisations, non-governmental organisations and other informal traders who have local knowledge of their communities
• Develop your products in partnership so that they solve a direct need rather than a hoped-for opportunity
• If your product can be repackaged, efficiencies gained and payment mechanisms changed to cater for irregular and micro-payments, then do so
• If your product is too big or expensive then develop distributed sales models that cater to group ownership and investment
• Work only with trusted intermediaries who will protect your reputation and investment - they are out there

• Absorb the culture of the informal market into your business and product development process by ensuring that staff are regularly exposed to the communities in which you work

Think business investment, not social investment, and unlock the fortune at the bottom of the pyramid