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Business idea, teatralna, Kyiv (2026)

Name: Business idea
Address: teatralna, Kyiv, 26645, UA
Telephone: +380735672654

12/08/2022

8. Increased aspirational capacity
Aspirational capacity refers to people’s capacity to aspire and to imagine alternative
options (Nussbaum, 2000; Sen, 1999) and is “conceived as a navigational capacity [to
explore the future] which is nurtured by the possibility of real-world conjectures and
refutations” (Appadurai, 2004: 69). It refers to how people conceive their possibilities in
life, their happiness, energy levels, and personal efficacy (Grootaert, Narayan, Jones, &
Woolcock, 2004). In fact, the crux of the matter is to get the people at the BoP “to imagine
themselves working better, not necessarily having more. Appealing to members of the
low-income segment as consumers triggers either price sensitivity or a sense that the offer
is for someone else” [original emphasis] (Letelier et al., 2003: 90). Moreover, aspirational
capacity is about people seeing who they can be and the role the firm can play in that life
and in their development toward that life.

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Living conditions (cf. footnote 1, page 2) are a multifaceted phenomenon and include
primary life necessities (e.g., water, air, sanitation, utilities, nutrition, and clothing),
infrastructure (e.g., housing, transportation, and communication), respect for human rights,
public services (e.g., healthcare and education), a sense of safety and security (e.g., from
criminal behavior or natural disasters), economic certainty (e.g., income stability and
buffers against sudden expenses), and labor (employment opportunities and conditions).
But they also include environmental aspects, such as the terrestrial ecosystem, air quality,
and stresses on environmental resources. A firm’s management of its impact on living
conditions at the BoP would benefit from the incorporation of business model mechanisms
that monitor its impact as broadly as possible. It should pay great attention to the aspects of
its impact deemed relevant by the people at the BoP and not only on the aspects deemed
relevant by the firm (Letelier et al., 2003). Moreover, firms should take steps to address
their negative impact where found.

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mmitments.
Hence, by definition, social conditions at the BoP are a central concern for people in
their everyday life. The above conditions and effects demonstrate how impoverished living
conditions restrain people’s productivity, abilities, creativity, and self-esteem and thereby
restrict their capacity to produce and consume. It is therefore not surprising that those
living in poverty seek ways to improve their living conditions and seek value propositions
that deliver social value. For example, firms offering a buffer against (economic)
uncertainties—through, for example micro finance or micro insurance schemes, which
Developing Profitable Pro-Poor Business Models 159
enable people to anticipate cyclical or unexpected crises—help prevent the dramatic effects
that uncertainty may have on everyday life. Value propositions that hold this social value
were found to perform well financially at the BoP (see Chapter 4). However, aspirations
for a better life may have become latent (Banerjee & Duflo, 2007). Therefore, firms may
have to guide low-income people and their inspirations by demonstrating the benefits of
the value proposition (cf. business model quality 8).

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Improved living conditions
“Poor people live in discomfort, in unhygienic, dangerous, dirty, badly serviced, and often
polluted environments where they are vulnerable to many physical shocks, stresses and
afflictions” (Narayan et al., 2000b: 34). They are “often described as tired, exhausted and
worn out” (Narayan et al., 2000b: 34), which is largely due to the hard work necessary to
survive while at the same time they lack food and access to good healthcare. In fact,
“[m]ore than anything else, poor people dread serious illness within the family. Illness
removes individuals from the labor pool and can push a household into poverty”,
particularly as affordable health care is lacking (Narayan et al., 2000a: 42). Furthermore,
feelings of “powerlessness, voicelessness, dependency, shame, and humiliation” are strong
(Narayan et al., 2000a: 7). A feeling of insecurity often makes people reluctant to make
long-term investments, and economic uncertainty makes people afraid to make long-term
commitments

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A firm’s distribution approach will generally differ in rural and urban areas, given
the obvious differences between isolated rural villages and the large, densely populated
cities where the poor often live in slums. One example of a strategy some firms use to
build their distribution infrastructure is microfranchising and employing the poor as
independent distributors. Firms may also facilitate a prospective customer’s travel, they
may use IT to remotely transact with customers, or they can visit potential customers
instead of having them come to the firm.

10/08/2022

The business questions are thus grounded in the business challenges. Therefore, to
formulate the appropriate business questions, we reformulate the elicited business
challenges of Chapter 2 into basic business questions (cf. WBCSD, 2004). Since these
business challenges were elicited from firms focused at the BoP, the methodology is BoPspecific. The exercise in which we convert the business challenges into business questions
is presented in Appendix 5.I. This exercise resulted in 22 basic business questions as
presented in Table 5.1 and visualized in Figure 5.3.

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Building upon the above argument allows us to develop a systematic methodology to
determine and analyze business models, in addition to the framework already offered in
Chapter 3. This methodology consists of questions, which are to be answered in the
terminology of the framework of Chapter 3 (cf. Figure 3.2). In fact, since the business
model is the representation of the way a business creates value, appropriates value, and
ensures its future viability, one should answer each question in terms of how the business
creates value, appropriates value, and/or ensures its future viability through the way it
deals with that business question.

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On the other hand, IT affects the rate of new entry into
industries by raising the barrier to delay competitor entry by
providing new service or product features that appeal to
customers. For example, in the banking industry, IT-based
access to banking services has seriously eroded the
traditional entry barriers enjoyed by many branch offices. In
the distribution industry, IT has created new entry barriers
by requiring investment in extensive computer and
telecommunication networks that are used to control costs in
large-scale multiplication distribution facilities. In effect, IT
has created a new scale- economy barrier which the new
entrant must overcome in order to price competitively and
still be profitable.

02/08/2022

A limited liability partnership agreement is an internally binding document between all partners that defines how business decisions get made, each partner's duties, powers, and responsibilities. It's widely recommended to create one to protect yourself and your business, even if your state doesn’t mandate it.

Business idea

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