However, because the harsher conditions of the developing world degrade the salt, a new, economical salt has been developed that is more stable than conventional iodized salt. Iodine deficiencies can lead to mental retardation and unsightly goiters, and are prevented in the developed world by the addition of iodine to salt. Meanwhile, those living at the BoP would get more value for the money it inevitably must spend on food. For the social enterprise, the BoP would present a viable market. Consequently, social enterprises should target this minimum amount of food expenditures and use strategies to improve its value. This data suggests that there is a minimum amount of the family budget needed to purchase food for survival. As household income increases, the share of the household budget for food declines.
When analyzing the data more thoroughly, an interesting pattern emerges.
In many poor countries, the BoP has the largest share of the food market, and in 17 African and Asian countries, the bottom three BOP income segments-the poor of the poor-account for over 50 % of measured national food spending. At the nationwide scale, the fraction of food spending by the BoP remains significant. (1) In Nigeria, food consumes 52 % of an average budget in Pakistan, food consumes 55 % of the budget. This is false, and it is important to understand that spending of all types does occur at the Base of the Pyramid.įood is largest expense at the BoP. Too often, those in the developed world assume that the poor struggle on minimal earnings, have no consumer power, and rely on charitable handouts for their needs. Overview of Spending at the Base of the Pyramid