Bonfring International Journal of Industrial Engineering and Management Science, Vol. 2, No. 4, December 2012 164
Micro-Entrepreneurship: A Sustenance Tool in the
Unserved Market
G. Magesh Kuttalam
Abstract--- Organisations living in the age of intensified
competition make the entire organisation to involve and
reinvent their strategies and tactics so as to retain or develop
business. In spite of the efforts a large market (3/4
th
of the
world population) remains unserved or underserved called as
Bottom of Pyramid (BOP). Different experts estimate the size
of BOP market as 3-5 trillion USD annually. This untapped
potential attracts many of the contemporary marketers.
Unfortunately a very few could succeed in their endeavour.
Many corporations were unable to reach the set target and
could not sustain their mission. The paper attempts to explore
the challenges that were in the way to serve the unserved
market. The paper ends suggesting that developing micro
entrepreneurship pertaining to each village or settlement will
help organisations to manoeuvre the challenges.
Keywords--- BOP, Micro-Entrepreneurship,
Sustainability, Unserved Market
_________________________________________________
I. INTRODUCTION
RGANISATIONS in these modern days are living in a
world where the degree of competition is getting
intensified on every passing day. The status quo of every
leader or challenger in the market arena is constantly under
threat due to this growing competition. Realising the
necessity, organisation to withstand competition and pursue
their objective of profit/wealth maximisation has started
bestowing more importance to marketing and its related
activities. Today, marketing is seen as a lifeline activity of
any organisations irrespective of its type of product or place of
operation. However, the dynamic stature of the market
demands a change in strategies and activities constantly. This
necessity has pushed the organisation to expand their frontiers
of marketing. Hence, innovations in strategies and tactics for
application have become a necessary order of the day to
sustain their position in the market. Organizations design and
execute training module in such a way to sensitise all the
employees on the importance of marketing. The contemporary
management crew irrespective of its functionality has started
to develop a focus generally on market and specifically on
customers. Such organisations are able to tide over the
difficulties that come across. They always move in order to
lookout for opportunities that are a new in the existing market
or a new market. Despite the efforts, many times organisations
Dr.G. Magesh Kuttalam, Assistant Professor, Department of
Management Studies, Manonmaniam Sundaranar University, Tirunelveli,
India. E-mail:mageshkuttalam@gmail.com
DOI: 10.9756/BIJIEMS.3016
fail to cover entire market. The focus is getting limited to few
segments and is not even towards the entire market and
sometimes is myopic in nature.
1.1 Un-Served Market
The focus of the marketers was largely towards the
customers belonging to the affluent class of people or those
living in the urban society. Less concentration was given
towards the people living in poverty or living in rural country
side. Unfortunately, the segment neglected by main stream
marketers makes up nearly 3/4
th
of the world population. This
segment of humanity still remains as an unserved or
underserved throughout the world, called as Bottom of
Pyramid (BOP) [1] Prahlad, 2006). World Resource Institute
(2007) report [2] says that majority of the BOP population are
largely dwelling in Africa, Asia, Eastern Europe and Latin
America. The table 1 shows the quantum of the population
living in the BOP segment and domiciled in various part of the
globe. The quantum as per the report approximates to a total
of 4 billion globally. The report further says that the people
belonging to BOP segment are making out their every single
day with less than ‘2’ USD. This from the point of marketers
would give the segment very less buying power and also the
demand for products and services. The same was considered
to be a strong reason for the neglect of the BOP segment by
the marketers.
1.2 Potentials of BOP Market
The argument for the neglect of the market holds good if
seen BOP customer in isolation. However, the spending
power of the segment when collectively estimated gives a
mind boggling figure due to the
quantum of population in the segment. The size of the BOP
market amounts to nearly three trillion USD per annum [4
billion x $2 x 365 = $ 3 trillion (approx...)]. Whereas the
Prahlad claims that the purchasing power of the BOP segment
amounts to five trillion USD. This testimonies’ that BOP
market as a whole is a goldmine having huge potential in it. It
O
Table 1:Major Global Regions Hosting BOP Population
Region
BOP Population
(in millions)
Africa 486
Asia 2858
Eastern Europe 254
Latin America 360
Total (approx.) 4000
Source: World Resource Institute
ISSN 2277-5056 | © 2012 Bonfring