Is it logical to believe that every BoP client will have an innovative idea?
If that were the case, many of these clients could approach their local banks and other alternative sources of finance within their home countries. While we certainly value the importance of scalability, it is important to recognize the harsh and specific conditions that these entrepreneurs and clients often face. For instance, in certain countries, women still find it difficult to access capital due to HIV/AIDS. Based on this fact, should they not have access to capital, simply because they do not have the capacity or resources to support attractive return on equities, as set forth by institutional investors and microfinance institutions? Such assumptions, to us, are inappropriate, unethical and unjustifiable. While our business model is debt-free and based on micro-equity financing, we do not feel it is appropriate to apply a sweat-equity based model.
