Tuesday, September 19, 2017

For Profit, with a Heart? (Week 4)

Of this week’s readings, the piece by Hugh Whalan, “How Misinformed Ideas About Profit Are Holding Back the World’s Poor,” struck me as particularly interesting in light of this past week’s lectures and their focus on the importance of designing and innovating for an audience or target demographic. Germane, too, is Dan Lockton’s guest lecture from Thursday 07 September, when he spoke about how imaginaries govern our relationship with the world around us and how perception is often far more important to our understanding than is reality. This seems a fortuitous intersection of ideas because Whalan makes a compelling case¾as does his company’s growth and social impact profile over the past couple of years¾that a profitable business and a positive social force need not be mutually exclusive concepts.

What Whalan’s examples show has been the focus of Lockton and Dr. Zak’s lectures over the past three class meetings. The strategies of these companies, and perhaps their successes, seem directly attributable to their embrace of geographic and population-governed product diversity. Jamii Bora, the aforementioned Kenyan microfinancier, was created specifically for its target demographic, a customer base of now over 360,000 Kenyans who previously had no access to banking and have since been given the opportunity to serve as agents in the improvement of their lives rather than merely recipients of well-meaning aid.[1] The bank’s founder, Ingrid Munro, talked about the access to financial services as being rungs on a proverbial ladder out of poverty; amongst the original 50 clients of Jamii Bora are former beggars who now run their own businesses and employ others. As a consequence of the very visible success of the bank’s customers, the organization has experienced such growth since Whalan’s article that they’ve announced that the bank will continue their shift from a strictly mobile model to having “fully-fledged bank branches” as well as expand outside of Kenya.[2] This is, arguably, directly attributable to their focus on the needs of their population¾unlike Coca-Cola or Diageo, though, which are able to enter the market from an external position of power and tailor a beverage to suit a resource and taste, the success of Jamii Bora and PEGAfrica arises from their ability to function within localized economies (within Kenya and Ghana, respectively) with specific needs.

This is where those imaginaries live. Whalan and Munro each identified a specific problem and set about finding a solution that would work specifically for and within the population in which they had identified the problem. This doesn’t seem like a spectacular leap of logical reasoning, but one can find dozens (if not hundreds, or even thousands) of examples of organizations and efforts that have been created in order to address a problem who set about to do so by imposing their solution onto the population experiencing the problem. I would argue that this mindset, and not whether a solution comes from the for profit or non-profit side of the economic aisle, is what makes the difference when it comes to success or failure. The people that Whalan and Munro have assisted have been given agency for their own success. They have been given access to technology or systems previously unavailable to them, but by means that make sense for them both socially and economically. They are not trying to change the people; they are changing what the people have the means to do. And that might make all the difference.




[1] https://jamiiborabank.co.ke/about-us
[2] https://jamiiborabank.co.ke/about-us

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.