The last-mile challenge: BIF Launches new Insider and Checklist

For many inclusive businesses, consumers at the base of the economic pyramid offer a large, untapped market and a huge opportunity for growth. But reaching these consumers, particularly in rural areas, can be difficult. Low purchasing power, traditional preferences and inadequate infrastructure can create barriers which make the ‘last mile’ of distribution extremely challenging.

In order to reach this unfamiliar market, many businesses are increasingly engaging ‘village entrepreneurs’. These individuals combine entrepreneurial skills with a presence in the local economy. Acting as a ‘touch point’ between a business and local customers, they are usually selected from within a village and sell products and services offered by companies on a commission basis.

However, there is growing evidence that this model does not suit every venture and that no business should assume that the village entrepreneur is the answer.

The Business Innovation Facility has produced two documents to help inclusive businesses assess whether the village entrepreneur is the best model to help make that ‘last mile’.

“The ‘last mile’ challenge: the limitations of the village entrepreneur model” – the second in our Inside Inclusive Business series - looks in detail at circumstances where this model does and doesn’t work and why it may not be a universal solution to the ‘last mile’ challenge.

The Checklist “Reaching the Rural Consumer” is a two-page, companion document which can help companies decide if the VE model the best option for their venture. It offers a series of factors for consideration, from the perspective of all stakeholders to help determine whether or not the model is appropriate and how likely it is to succeed.

We hope that together these publications offer a broad and practical insight into this topic. They are intended for all practitioners wrestling with the ‘last mile’ challenge: please pass them to others or share via Facebook and Twitter - and let us know your feedback.

These documents were based on the work of Nisha Dutt, Business Innovation Facility Country Manager, India.