Income pyramid

Creating sustainable for-profit businesses that target people at the bottom of the income pyramid is a topic of growing interest to development finance institutions, private investors, and local entrepreneurs to support poverty reduction through private sector business opportunities.

With increasing focus on this lower income segment, companies both large and small have started to recognize that there is a large market potential represented by the base of the income pyramid.

For multilateral development banks, like ADB, this is an important way to mobilize and engage the private sector to achieve poverty alleviation and reduce income inequalities in developing countries.

The good news is that the Asia and Pacific region is already demonstrating how innovative, inclusive finance can make a difference, but much more can be done.

In India, for example, the government has prioritized financial inclusion and, as a result, great strides have been made.