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Many entrepreneurs (incorrectly) think the biggest chall... making the product. They are so pleased they have invent... more efficient or lower cost or fancier than the other w... market. Since there are 1 bazillion people whose life wo...
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Hip Gadgets For The Developing World Won't Solve Global Poverty: Stop Making Them | Co.Exist | ideas + impact
http://www.fastcoexist.com/...ent-going-to-solve-global-poverty-stop-making-them

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Many entrepreneurs (incorrectly) think the biggest challenge is actually making the product. They are so pleased they have invented a widget that is more efficient or lower cost or fancier than the other widgets on the market. Since there are 1 bazillion people whose life would be immeasurably improved by getting access to their widget, and their widget is the best, success is a sure thing.

Wrong! Actually, virtually none of these widgets ever get to their intended customers because of supply chain and logistics challenges. It is incredibly difficult to cost-effectively reach and then service customers who are are sparsely populated, many hours from a city, and on dirt roads with no electricity, Internet or water. A 2011 U.K. government report noted that transport and supply chain costs can represent as much as 75% of the value of goods in Africa. I personally think this is a little high, but my own experience running businesses in Ghana shows that a $10 product manufactured in China almost certainly ends up being sold for $25 to $30 or more in the village in Africa.

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<p>Many entrepreneurs (incorrectly) think the biggest challenge is actually making the product. They are so pleased they have invented a widget that is more efficient or lower cost or fancier than the other widgets on the market. Since there are 1 bazillion people whose life would be immeasurably improved by getting access to their widget, and their widget is the best, success is a sure thing.</p> <p>Wrong! Actually, virtually none of these widgets ever get to their intended customers because of supply chain and logistics challenges. It is incredibly difficult to cost-effectively reach and then service customers who are are sparsely populated, many hours from a city, and on dirt roads with no electricity, Internet or water. A 2011 U.K. government report noted that <a href="http://www.bis.gov.uk/assets/biscore/international-trade-investment-and-development/docs/t/11-717-trade-investment-for-growth.pdf" target="_blank">transport and supply chain costs can represent as much as 75% of the value of goods in Africa</a>. I personally think this is a little high, but my own experience running businesses in Ghana shows that a $10 product manufactured in China almost certainly ends up being sold for $25 to $30 or more in the village in Africa.</p>