What is the Bottom of the Pyramid approach, and why is it consider Essay

What is the Bottom of the Pyramid approach, and why is it consider controversial - Essay Example In this regard, the poor are seen to be resilient and enterprising in terms of managing their budgets with the meagre income they earn. In essence, the BOP concept has gained prominence out of the consideration of the over 4billion poor around the world who are ignored by multinational corporations, for instance. Consequently, BOP views this group to be significant in terms of influencing trade and growth. The proponents of BOP further suggests that market development targeting the BOP group leads to the development of new entrepreneurs, particularly, at the grass root level. While BOP approach appears controversial, it has opened up opportunities for multinationals to exploit and serve the BOP consumers effectively. For example, the establishment of micro-finance organisations in Kenya, for instance, has helped entrepreneurs in the informal sector to grow their businesses from small to medium sized businesses. While BOP approach has opened up market opportunities, it is considered that targeting the poor can result in wasteful spending of the already meagre income they earn. On the other hand, BOP considers spending by the estimated 4billion poor should be left free to decide how to use their earnings since they are value-conscious consumers. As such, they are the only ones who can determine how to maximise their utility. However, a free market ideology such as the poor’s right to maximise their utility tends to harm the disadvantaged in the society. This is because while the poor also can make choices just like the advantaged in the society, some of the decisions are not thought out properly. This approach is also controversial in the sense that, the poor are affected by numerous social issues and cannot be compared with the upper or middle-class population in terms of making informed choices. This is because a larger percentage of the disadvantaged in the society appears vulnerab le due to lack of proper education. They are also