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Making Markets Work for the Poor

by Ted London

Description: CARE is an international, humanitarian, non-governmental organization (NGO) composed of twelve member countries that manage field operations in over seventy countries offices around the world, reaching more than fifty million poor people. In 2005, CARE started a pilot initiative in Central America to access whether its support of revenue-generating ventures provides sustainable and scalable poverty alleviation outcomes as well as an opportunity to generate excess revenues for the organization. This case focuses on CARE’s challenges to explicitly incorporate a market-based approach within its portfolio of poverty alleviation solutions. Teaching Points: “After discussing this case study, students will be able to:

  • Identify the pros and cons of a large humanitarian organization, such as CARE, in supporting and managing a portfolio of revenue-generating ventures as part of its overall poverty alleviation strategy;
  • Evaluate CARE’s Business Development Framework, a tool for intermediary organizations interested in standardizing their role in the development of a diverse set of revenue-generating ventures;
  • Analyze whether or not CARE should take an equity position in its ventures, a critical issue for organizations that wish to generate excess revenues from the ventures they support;
  • Assess whether or not a value chain strategy is an appropriate framing for CARE’s work in supporting revenue-generating ventures.”

Key Topics: 

• Base of the Pyramid (BoP)
• Cross-Border Activities
• Education
• Emerging and Developing Economies
• Emerging Markets
• International Business
• Non-Profit & Non-governmental Organizations
• Social Enterprise & Entrepreneurship
• Strategic Management

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