SECTOR OVERVIEW

Scarcity of clean water is a major cause of illness and lost productivity for the base of the pyramid in developing countries.

Communities often lack access to safe drinking water because they live in informal settlements that spread more quickly than formal infrastructure can keep up with, and often in locations that require more expensive infrastructure for pumping and purifying water. Furthermore, providing public services for these informal settlements can be a controversial matter in countries where the legitimacy of such settlements is disputed.

Social enterprises currently help provide access to clean water through centralized purification systems and products for use at home such as filters. Water is considered a low-margin, high-volume product—as affordability is key, financial viability is only possible upon reaching a certain scale. Challenges for social enterprises in the water sector include generating demand for a product that potential customers are used to obtain for free. In many cases, taste and price of water takes priority over purity and long-term health considerations for consumers, which suggests the need for thoughtful marketing and education campaigns on behalf of actors in this sector.

Key Elements

Social enterprises currently help provide access to clean water primarily through centralized purification systems and products for use at home such as filters.
Water is considered a low-margin, high-volume product—as affordability is key, financial viability is only possible upon reaching a certain scale.
Challenges for social enterprises in the water sector include generating demand for a product that potential customers are used to obtain for free.
In many cases, taste and price of water takes priority over purity and long-term health considerations for consumers, which suggests the need for thoughtful marketing and education campaigns on behalf of actors in this sector.

Social Enterprises by Sub-Sector

All »