Why is there a poverty class at owen? 

What is the Intersection of Business & Poverty?

written by Allison Durham

It is true that for the private-sector and multinational corporations (MNCs) to aid in alleviating impoverished countries, they must begin by leveraging the massive market potential at the Bottom of the Pyramid.  However, it is clear that the necessity for change in the managed practices of firms and MNCs is a slow transition. Best described by C.K. Prahalad in the section on “The Power of Dominant Logic,” historic ideals and governance have drawn a deeply ingrained line between what is considered profitable society and the Bottom of the Pyramid.  Those with minimum cash flow are given little regard in the marketplace and are instead left with minimal access to goods, services, and growth potential. For the business-sector to change their perception of where to invest time, resources, and knowledge, we must expose both the market opportunity as well as a general social responsibility owed to the 4 billion people living in poverty. 

The most common misconception currently held by private-sector firms and MNCs is that those that have little in terms of financial wealth pose little opportunity for sustainable profitability and business growth.  Yet as Prahalad demonstrates in the characteristics that define a BOP market, the impoverished are a connected market that is more amenable to advancement and technology given the means to do so. The BOP markets are an ideal target for businesses and MNCs because they embrace change, are attracted to commodities, and have a steady purchasing power in terms of consistently purchasing the items they crave and need whenever funds are at their disposal. Given these favorable terms, businesses and MNCs alike should be innovating ways to open the door to market development that is enabling rather than turning a blind eye.

Should businesses need one statement of proof to emphasize the importance of leveraging their wealth to aid the poor and to be aware of the negative impact of not acknowledging this opportunity, they should consider the connectedness of the BOP market.  In customer service, it is common knowledge that one unhappy customer will relay their dissatisfaction to at least three others, while the most content of customers is not likely to pass on their praise.  Applying that concept to the BOP markets, if they are as connected through information networks as Prahalad describes, ignoring them or worse, displacing them from the consumer space, poses a risk to the business-sector in terms of negative impact. Prahalad states that “word of mouth among BOP consumers is becoming a very potent force” (pg 15) and should not be ignored by business, but rather identified as an outlet for reaching previously unreachable markets and as a channel for sustainable growth.

While having to this point only discussed how the business-sector and MNCs can benefit from not ignoring the poor when identifying to opportunities for profitable and entrepreneurial growth, the humanitarian aspect should be equally considered.  It is the responsibility of business to create opportunity in the community in which they operate, and this should extend to empowering sustainable development among the underprivileged.  To ignore more than 50% of the global population is to dehumanize and discredit their value and contributable potential in the on the global economy.  No matter the size and scale, all people should be given the equal opportunity to make an impact in their community and the society they are a part of.  To be ignored by business and left impoverished strips importance and, as emphasized by Prahalad, “dignity” from those that have the potential to impact change in vast markets.  It is the responsibility of the business-sector to give BOP markets the tools and models to develop businesses that will aid to alleviating poverty.

Written by Burch Wood  

As I was reading the first chapter of Prahalad’s The Fortune at the Bottom of the Pyramid, I was struck by some of the similarities between the impoverished of the developing nations and those of developed nations.  This resonates with me because I come from an area that is traditionally socio-economically depressed.  My own history working in a gas station (which serves all walks of life), going to school with some kids that still didn’t yet have power, and my own family’s history tenant farming helps me to see many of the things Prahalad points out as intuitively true.

            Having grown up in a town that, to some extent, exists economically because it has an interstate running through it, access to consumers is very important.  Access issues (despite the interstate) exist even now there.  Much of the mountainous areas of the county still use dirt and gravel roads with little likelihood of seeing pavement in the near future.  Some in those areas still don’t have power or telephone.  Even my childhood home, despite being located just off a U.S. Highway and being less than two miles from the interstate, has no access still to broadband.  Knowing the limitations in an area that is served by an interstate and only 30 minutes from the most visited National Park in the U.S., I cannot begin to imagine what barriers to access must exist in places that are much more “off the map.”

            Another thing that Prahalad gets absolutely correct is the brand consciousness at the bottom of the pyramid.  My granddad spent much of his life tenant farming and running a bread truck in Northeast Georgia.  My dad had four other brothers, all of whom were expected to help out on the different farms they would live on.  Grannie made most all of their clothes.  Even so, they would get one or two pair of “store-bought” overalls or the like a year.  The greatest care was taken of these because they were “store-bought” and, thus, special.  They didn’t have much, but they were very conscious about what they couldn’t always afford in the stores.

            As far as being connected and enjoying new technology, anyone who has ever been to a rural area should be able to tell you that communication is their most precious resource.  Whether it be traveling by horse or post, spoken on a party line, or sent by email or text, communicating with others is probably ranked as the most important thing after work (and to the natural busy-bodies, probably THE most important thing).  Often in rural communities, this takes the place of movies, television, blogging, and all other forms of gossip and communication that we frequently utilize as luxuries.  Also, anyone who has ever had to farm with limited resources, little control over the weather, and other pitfalls, understands that if there is a smarter way of doing something (any kind of technological advance), they want to know about it.  It’s no mistake that so many famous inventions in the U.S. were developed as we made farming better!

            Last, I wanted to touch on dignity at the bottom of the pyramid.  Many of the poorest people I have known have also been the most proud.  Every accomplishment that they make in the face of their own adversity is a major one.  They do not like being given things, but actually prefer to earn them in their own right.  They may, as Prahalad suggests as a model, ask to buy things in smaller quantities because they can only afford a portion.  Granting them even this small and inconsequential courtesy allows them to maintain their dignity.  It allows them to maintain the role of provider for their family, and teach their children the value of self-reliance.  It also allows them to contribute to their own economies, to build something bigger than themselves.  These are all very important things to the human condition.

Written by Scott O’Connell

As terrible as it may sound, I’m not the type of person who would call themselves a “do gooder.”  I have a very capitalistic mind set.  I worry about myself and I want to make money.  That how I am, I don’t see myself changing.  However, last summer I met a friend of a friend who had spent the last four years living in Cambodia.  He and 4 of his friends packed up 2 weeks after graduating from undergrad, moved to Cambodia, and started providing financing for small entrepreneurs in Cambodia.  I was truly fascinated by everything he told me about how providing even just $100 can allow someone to start or improve their business in a developing country.  I had a great time talking with him but honestly left feeling that what he was doing was great, was never something I could actually see myself doing.  I did leave though wanting to know more.  When I heard that Owen offered this class, it immediately sparked my interest.  I thought back to my conversation with this gentlemen and how I was so interested in everything he was telling me.  Since my knowledge of this subject is limited to what I learned that day, I thought this class would be the perfect opportunity for me to learn more.  I figured I would learn amazing things from speakers, class mates and the assigned books and articles.  Am I suddenly going to go out and move to Cambodia after I graduate?  I really don’t know, but I do know I want to build on the experiences of others and learn as much as I can.  I decided to go to graduate school to learn practical tools that could be applied towards my career but I also came with a desire to branch out and learn about things that are totally foreign to me, and that I may never have thought interested me.

I am excited for this course and am hoping to get as much from it as I can.  I’ve never been to Europe or Asia but hope that spending time with those who have or those who know way more than I do, will be a great and rewarding experience.  With a desire to learn, I also believe that my classmate will be excited to teach me and share their experiences with me.