The base of the pyramid: Towards a high growth framework for SME action

Type Conference Paper - International Association for Management of Technology IAMOT 2017 Conference Proceedings
Title The base of the pyramid: Towards a high growth framework for SME action
Publication (Day/Month/Year) 2017
City Vienna
Country/State Austria
This paper presents a conceptual framework to guide owners or managers of small to medium-sized enterprise (SMEs) in targeting the base of the pyramid (BOP) as a profitable market. Via a semi structured literature review process, factors which were deemed necessary for the attainment of high growth were determined, including: the use of a business model for detailed planning, the incorporation of a suitable and detailed business strategy for long-term growth, the utilisation of innovation to consistently improve the value offering and respond promptly to changes in the market, and the implementation of good marketing practices to ensure value is delivered to the customer. In addition to the high growth factors, an area of concern determined to be necessary for sustained growth in the BOP is the pursuit of sustainable development. Jaipur Rugs, a successful high growth developing country enterprise that operates in the Indian BOP provides a strong case for assessing the framework’s applicability to a developing country context. It demonstrates the relevance of the framework in the real world through practical examples that reveal the importance of the various high growth promoting factors incorporated in the framework.Further validation was achieved through interviews with experts in the fields of SMEs, growth, and the BOP market.

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