November 2010 In this chapter from Next Generation Business Strategies for the Base of the Pyramid, co-authors Robert Kennedy and Jacqueline Novogratz explain how social entrepreneurs and “philanthrocapitalists” are changing the BoP landscape by connecting innovative business approaches to “patient capital”—i.e., money that is expected to generate returns over a longer period than is typical of (say) venture capital. They identify four types of innovation that are proving critically important to success in operating in BoP markets, and show how a range of enterprises are applying these approaches in the field. The past decade has witnessed a revolution in thinking about how to address the persistent issue of poverty. Thoughtful observers in government, business, and nonprofits are moving beyond the old “markets versus development assistance” debate and are now converging on a new approach to addressing poverty.
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