NOVEMBER 20229The Need for Scale The Key challenge with small & med-sized business has been their inability to scale. Limiting their potential impact, an ecosystem approach linking innovative finance, partnerships & business support is required. Frugal innovations are not just about limiting the resources yet making innovations worldwide in a sustainable manner, its great potential also lies in business model innovation. Frugal innovations in services can include deep specialization in a niche segment of a huge market, tiered pricing systems and efficient use of human capital. These innovations respond not only to a lack of skilled human capital, but to an institutional void. For example, Unilever's small, affordable detergent packets are priced at a more palatable level for the low-income populations in India and Africa. And Aravind Eye Care's approach to performing cataract surgeries at large scale without compromising on quality highlights how process innovation can ensure inclusivity and service delivery in a sustainable manner. Implementation of Low-Cost Solutions in Emerging Markets Today many businesses, both startups and established corporations, have begun to develop cost-effective, market-based solutions that include product and business model innovations in order to meet the unmet needs of billions. For example, Dr. P.K. Sethi's Jaipur Foot, also known as the Jaipur Leg, is a rubber-based prosthetic leg for people with below-knee amputations in India. Dr. Sethi was awarded the Magsaysay Award for Community Leadership in 1981 and the Padma Shri by the Indian government the same year for his invention, and another startup called MittiCool was founded by a traditional clay craftsman, Mansukhbhai Prajapati, who literally turned the soil into gold. He harnessed the cooling properties of clay and created a low-cost, biodegradable refrigerator made out of clay, Mitticool. It became an instant hit in his village, and since then, there is no looking back. His factory is producing other kitchenware out of clay. This Village Entrepreneur has been recognized and awarded by national and international organizations. And this how SME's can implement low cost solutions into their strategies and come out to be a behemoth in the emerging market. Final Thoughts Entrepreneurs' innovative, cost-effective solutions can help address this issue, leading to a more equitable future. However, an ecosystem approach is required to achieve this goal, with integrated support from a variety of players ranging from investors and donors to corporations, mentors, and service providers. With this assistance, small to med sized business will be better able to market, scale, and reach vulnerable communities.Frugal innovation has changed the way businesses operate, shifting from traditional to more innovative methods, and such transformation of business operational activities is entirely reliant on advanced digital technologies
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