Profits at the Bottom of the Pyramid

Two columns on microconsignment, a new variation on microcredit that helps poor people living in developing countries - particularly women in rural villages - start small social businesses without taking on debt or requiring previous business skills. The organization, Soluciones Comunitarias, partners with a non-profit and a university student program to manage the supply chain and other components of the business necessary to support the social entrepreneurs in successful micro-ventures.

Microfinance was widely lauded for decades as a surefire and promising way to break the cycle of poverty and uplift the economies of the developing world, especially when targeted for women. But hard data has shown that, on its own, micro-loans don't serve to create sustainable change without a comprehensive approach, and that there are many other factors - such as education and healthcare - to consider when leveraging these tools.

For the superrich and the biggest U.S. charitable foundations, donating to universities, hospitals and cultural institutions is the norm. Less common are donations targeted at "social change" such as alleviating poverty or tackling global warming - but that is beginning to change. An in-depth study from the Bridgespan Group is showing how big bets in philanthropy are paying off, as well as what factors - such as a close donor-recipient relationship - are key to success.

There is a substantial argument for increased involvement of private companies in venture philanthropy. Unlike large government bodies and NGOs, private companies are more nimble and experienced when it comes to strategies in marketing, R&D, creating pricing structures, and adapting to rapid social change. Three companies in India are seeing real results by serving India's poorest customers with a market-based approach.

Pakistan's poorest citizens, who previously panhandled for their basic needs, were launched onto an entrepreneurial path by the Heritage Foundation Pakistan. Eight impoverished communities have been trained in the craft of glazed tile work and terracotta art to lift the participants out of poverty. The program also created a market of interdependence, so the villages can purchase goods from one another, freeing them from relying on cities for their livelihood.

Nonprofits in Nepal have turned to social enterprise to provide a source of income for the people they typically serve through donations. The enterprise operations help them raise more funding for their projects and reduces their need to rely entirely on donor funding. Job training and employment also provide the beneficiaries with a sense of confidence due to their new-found independence.

The resources needed to tackle some of the world's most pressing social and environmental problems - from poverty to climate change to inequality - are generally far beyond the reach of governments and traditional philanthropies. Fortunately, the private sector is taking an increasing role in social entrepreneurship through the practice of impact investing. Organizations and individuals alike are investing funds into meaningful, scalable projects that are generally proven to also provide a return; a win-win for everyone that generates sustainable change.

The rapid development of emerging economies across Asia and Africa is lifting hundreds of millions of people out of poverty - but there is much debate as to how to best structure this growth. If these economies evolve in the same way as in the West - with unchecked, excessive resource consumption and heavy pollution - the planet may be on the fast track to disaster. Earthrise explores how these nations can grow sustainably using improved, eco-conscious technologies like renewable energy and eco-friendly farming practices.

Not all seniors need the various discounts they receive. The Boomerang Giving project allows them to donate back the difference of the discounts on things like movie tickets to a charity of their choice, benefiting not only a community cause but also their own mental and physical health. Various services also assist them in selecting and investing wisely in different nonprofits.

A successful program in Uganda trains village women to sell medicines, fortified foods and other important goods using the Avon model, aiming to create a self-sustaining system for delivering essential health products.