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Businesses Serving the Poor Need to Get Over Their Unease About Profit

Harvard Business Review

Business cost structures in low-income markets are daunting: Operational expenses such as distribution frequently dwarf the costs that companies face in developed markets, while customer acquisition and retention often demand unusually intense — and costly — levels of consumer engagement. The result has been explosive growth.

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Give Impact Investing Time and Space to Develop

Harvard Business Review

As the sector grows through this period of creative destruction, models that don’t work will die out, models that survive will attract copycats, operating costs will go down, and winners will rise to the top. We allowed microfinance and the venture capital industry the time and space to develop over a few decades.