Profitable business serves the poor

In 2012 the World Bank estimated There are approximately 2.7 billion people below the poverty line (World Bank, referenced by Polak, pg. 36). This number is not equitably distributed across the earth, but is concentrated in certain areas of the earth: Africa, the Caucasus, and India. Neither is poverty a one-time problem that, once solved, need never come back. War, disease and natural disasters can all impact poverty across entire regions. May Syrian refugees fled well-paid jobs and expensive cars for tent camps and worse (Visualize Poverty).

Efforts have been made to address international poverty, with the U.N. goal to eradicate poverty one of the most well known (United Nations Goal #1). The relief work thousands of caring people undertake every day is considerable, but there are limitations. The pool of resources to donate to the cause is limited, and with each new non-profit relief organization there are more hands in the same money-pot. Their ability to scale without dramatic funding is unlikely, and there has been regular controversy about the measure of effect these organizations can sustain. This is where business can help.

Business, defined as the production of goods or services at a profit, is a vehicle for change that does not face the same limitations other relief organizations experience. These relief organizations are vital, and the thousands, even millions they serve is a testament to their worth. Profitable business has distinct strengths, however.

Businesses can scale themselves where donor-dependent organizations cannot. When a non-profit organization seeks to expand its influence to a new market, it must also expand its supporter base. When a business expands, the people that it serves are those who generate the necessary revenue to support the expansion. This does not mean business is any more likely to survive poor decisions, chance events or stiff competition, but its ceiling is higher.

Businesses are more accessible than non-profit organizations. The drive to produce a profit requires business owners to think through the entire process of their business. From sourcing materials to delivering finished goods to their customers, they must consider efficiency and delivery in every aspect. A non-profit does not have the same care, and often does not own or seek the resources to complete the entire cycle.

I’m impressed by the well-reasoned and data-backed arguments of Polak and Warwick. They’ve clearly been invested in the topic they are passionate about for some time. They have been around a combined 150 years at the time of their book’s 2013 publishing after all! I wish there was more time to finish their book - hint, hint.

Because this book is clearly written and deeply researched, my application is to finish it and put its principles into practice as the subject, the service of the 2.7 billion poor on earth, is also a subject close to the heart of Jesus. After speaking with my other classmates; however, it appears I’ve already gotten the best parts of the book.

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