If I told you that selling things to the poor could relieve their poverty, what would you think? It seems counter-intuitive at first glance, but there is wisdom behind the idea. This past week, my friends and I have been reading Paul Polak’s book, “Out of Poverty: What Works When Traditional Approaches Fail”, and Polak argues this point expertly.
Paul Polak is the founder of the very successful IDE (International Development Enterprises), which has helped move 17 million people out of poverty. Their methods are those of any successful business: They find a gap in the market, and they research, refine and deliver new products to the marketplace. The only difference is that IDE doesn’t ignore the customers in the lowest income bracket, in fact, they focus primarily on folks who’s income is only one dollar a day.
I think the most important thing you can take away from Polak’s book is this: Entrepreneurs and inventors, designers and engineers must not turn a blind eye to the needs of poorer consumers. If they do, then the economy will force a majority of the world’s people (people who live in extreme poverty) to remain in the technological dark.
Below is a comic I made which illustrates the principles behind Polak’s very interesting book. Click on the comic to view it full-size.
