This is how poverty can be reduced through innovative ideas
Poverty is plague that is caused by injustice in the world. It can be reduced through several means including modern innovative means that human beings can come up with. In this article we discuss about that reality. In fact, it is very much possible that human beings are capable of resolving their own problems.
Expensive services are frequently out of reach for low-income persons. Change is feasible, though, thanks to inclusive business models that provide inexpensive products and new work opportunities. Ideas like this need boldness, helpful partners, and knowledge, all of which are hurdles that a Nigerian entrepreneur has successfully overcome. Her goal is to provide health care to everyone.
A freight drone is landing outside of a remote hospital. It’s bringing life-saving blood supplies, much to the relief of the medical personnel who had been waiting. The purpose of the revolutionary startup LifeBank is to make scenarios like these a common occurrence in Nigeria and Kenya. It specializes in delivering blood and oxygen to hospitals in a timely manner using motorcycles, cars, ships, and drones. More than 750 health-care organizations have signed on as partners.
The work of LifeBank is built on a unique business strategy that employs tiered supplier costs and a pricing system that differs between buyers. Private clinics invest in premium services like enhanced security and quality assurance, which they subsequently pass on to their patients. The excess revenue is utilized to crosssubsidize services for lowincome populations at discounted pricing. ‘I started working like way because I wanted to help individuals with modest incomes,’ explains Temie GiwaTubosun, LifeBank’s founder and managing director, of her company’s ideology.
One of the core ideas of Inclusive Business is to focus on individuals with the lowest incomes (IB).
People with modest incomes can be included into company models using this method. In the instance of Life Bank, the corporation charges a premium for quick blood and oxygen delivery that even low-income customers may afford.
Simultaneously, the Nigerian startup is providing enticing opportunities for people with no formal education, such as delivery employees. They may then buy food for their family and bring money back into their communities, which can be used to improve roads and schools. A cyclical mechanism that permanently lowers poverty is the ideal end.
This is why, on behalf of the German Development Ministry (BMZ) and with EU funding, the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH began promoting IB models six years ago (EU).
The demand is enormous. Four billion people in the planet live on less than $8 a day. They have no hope of improving their financial situation and are unable to pay for basic products and services. Their condition is exacerbated by the socalled poverty penalty, which requires lowincome individuals to pay more for items than wealthier people. It is impossible to plan longterm purchases or buy things in bigger quantities at reduced prices without a consistent income.
GIZ is leading the way worldwide with its digital IB platform, which is the largest in the world, to better the chances of individuals living in poverty. Inclusivebusiness.net, which was created in collaboration with international organizations, is a place where entrepreneurs can learn and network. It provides knowledge, success stories, and training opportunities. The portal has around 8,700 monthly visits from 165 countries.
GIZ is also trying to enhance the general environment for low-income individuals to participate in and profit from economic activity. Its IB policy development program brings together members of politicians, civic society, and the commercial sector.
For example, in Cambodia, this has resulted in the creation of a national IB strategy, which is presently enhancing the climate for IB firms. The notion is functioning, according to State Secretary Heng Sokkung of the Ministry of Science, Technology and Innovation. ‘IB contributes to the evolution of our economy by inventing and opening up new market areas.’ Benefits are arising on three levels: for businesses, for low-income people, and for society as a whole. GIZ is a key strategic partner in putting IB into reality for us.’
GIZ, in collaboration with the Association of Southeast Asian Nations, has started similar procedures in other nations in the area (ASEAN). Nigeria and Zambia will benefit from the lessons acquired.
LifeBank is another company that has benefited from GIZ’s network, as it is one of 131 that have participated in training and other formats on IB. ‘Many businesses that have an inclusive approach to business find it difficult to scale up their creative business models. Temie Giwa-Tubosun states, “GIZ gave us all the tools we needed to establish a plan for extending our concept to Kenya in the future.” The creator of a startup has huge plans. She hopes to expand her business even further, providing even more people with immediate emergency and health care while also contributing to equality of opportunity through appealing work opportunities.