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Guest Post: An Entrepreneur's Thoughts on Market Incentives & Foreign Aid

Mills Scofield

Thoughts on Charity, Foreign Aid and Market Incentives - Tanzania. He worked in a firm that supported fixed income investments in emerging markets. One of his main tasks was to structure a hedging derivative that negated foreign exchange risks so that Microfinance institutions could take safer loans from the developed world.

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Making Microfinance More Effective

Harvard Business Review

While meeting this challenge is a clear priority for policy makers and donors, it is also a major profit opportunity for commercial players who can solve market failures and create real value. Micro-insurance is not at scale anywhere except when heavily subsidized by government, a market we hope technology may change in the future.

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

Harvard Business Review

If you've ever had anything to do with business initiatives among the world's poor — the so-called bottom of the economic pyramid — you've no doubt heard the advice that enterprises in this space need to aim for low prices, low profit margins, and high sales volumes. At a price equivalent to 10 U.S. It was laid down by C.K.

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What Makes Social Entrepreneurs Different

Harvard Business Review

It is unthinkable, for instance, to imagine a social entrepreneur treating research on the health effects of tobacco use the way the tobacco industry, market analysts, and investors did in the 1960s and '70s. That the person paying the price sufficiently benefits is actually secondary. They can be more analytical.

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It Takes a Village to Raise an Entrepreneur

Harvard Business Review

A hybrid approach is exemplified by startup Frogtek, which develops software for local shopkeepers in emerging markets to more efficiently track their inventory, leading to better purchasing decisions and greater profits. In dealing with customers and beneficiaries, hybrids face difficult tradeoffs in determining the best ways to price goods.

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The Smart Way to Make Profits While Serving the Poor

Harvard Business Review

Most companies trying to do business with the 4 billion people who make up the world's poor follow a formula long touted by bottom-of-the-pyramid experts: Offer products at extremely low prices and margins, and hope to generate decent profits by selling enormous quantities of them. The price includes the company's cement products.