Islamic Micro Finance (IMF) for the enterprises at Bottom of the Pyramid (BOP) in India

M.S. Subhas*, D. Halaswamy**
*Professor in Management, Kousali Institute of Management Studies, Karnatak University, Karnataka, India.
**Senior Research Fellow (UGC), Kousali Institute of Management Studies, Karnatak University, Karnataka, India.
Periodicity:September - November'2013


The main aim of the article is to assess the potential for evolving enterprises at the BOP and hence India can develop. The article argues that Islamic microfinance can play an important role in involving farmer village youths in the business and hence there will be eradication of poverty, the socio-economic development of the poor and small (micro) entrepreneurs without charging any interest. India as a country of “Unity in Diversity” is well known for its varied traditions and cultures in turn as religions. The present paper would like to present a well tested business development concept Market Oriented Value Enhancement (MOVE), which resulted in generating successful entrepreneurs in its efforts. From the findings we have come across the fact that Islamic (Muslim) group of trainees have been found to be more involved seriously and effectively in forming of their ventures and running them for their sustainability.


Bottom of the Pyramid (BOP), Branding of Fresh Fruits and Vegetable (FFV), Market Oriented Value Enhancement (MOVE) and Islamic Microfinance (IMF).

How to Cite this Article?

M.S. Subhas and D. Halaswamy (2013). Islamic Micro Finance (IMF) for the enterprises at Bottom of the Pyramid (BOP) in India. i-manager’s Journal on Management, 8(2), 7-13.


[1]. ADB (Asian Development Bank) and IFPRI (International Food Policy Research Institute) (2009). High Value Crops and Marketing- strategic options for development in Uttarakhand, Academic Foundation, New Delhi.
[2]. Ajay K. Kohli & Bernard J. Jaworski (1990), Market Orientation: The Construct, Research Propositions, and Managerial Implications', Journal of Marketing, Vol. 54, April ,pp.1-18.
[3]. Anon. (1998). New grape packaging a delight for consumers and growers. In Australian Horticulture Yearbook. Australian Horticultural Corporation, Sydney.
[4]. Bennett, Lynn (1998), Combining Social and Financial Intermediation to Reach the Poor: The Necessity and the Dangers in Kimenyi, Mwangi S., Robert C.Wieland, and J.D.V. Pischke (eds), Strategic Issues in Microfinance, Hants, England: Ahsgate Publishing Ltd., pp.99-117.
[5]. Berger, Allen N., and Gregory F. Udell (1998), The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth Cycle, Journal of Banking and Finance, No. 22, pp.613-73.
[6]. Deshpande, Rohit and Frederick E. Webster. (1989). "Organizational Culture and Marketing: Defining the Research Agenda," Journal of Marketing 53 (January): 3- 15.
[7]. Drucker, P. (1954), The Practice of Management, New York: Harper and Row.
[8]. Felton, A.P. (1959), Making the Marketing Concept Work, Harvard Business Review, 37, (July/August), pp.55- 65.
[9]. Gardetti, M.A. (2007). A base-of-the-pyramid approach in Argentina: Preliminary findings for a BOP Lab. Greener Management International, 51: pp.65-77.
[10]. Hart, S. L. (2005). Capitalism at the Crossroads: The Unlimited Business Opportunities in Serving the World's Most Difficult Problems. Upper Saddle River, NJ: Wharton School Publishing.
[11]. Hart, S. L., & Christensen, C. M. (2002). The great leap: Driving innovation from the base of the pyramid. Sloan Management Review, 44(1): pp51-56.
[12]. Hammond, A. L., Kramer, W. J., Katz, R. S., Tran, J. T., & Walker, C. (2007). The Next Four Billion: Market Size and Business Strategy at the Base of the Pyramid. Washington, DC: World Resources Institute and International Finance Corporation.
[13]. HRDC (1990), Consumer study of the fruit and vegetable market. Horticultural Research and Development Corporation, Sydney.
[14]. Huppi, M., and Gershon Feder (1990), The Role of Groups and Credit Cooperatives in Rural Lending, World Bank Research Observer, No. 5, pp. 187- 204.
[15]. Joseph, M, N Soundrarajan, M Gupta and S Sahu (2008). Impact of Organised Retailing on the Unorganised Sector, Indian Council for Research on International Economic Relations (ICRIER), New Delhi, May.
[16]. Keith, R.J. (1960), The Marketing Revolution, Journal of Marketing, 24, (January), pp35-38.
[17]. Kohls, R., and J. Uhl. (1990), Marketing of agricultural products. Prentice Hall, Englewood Cliffs, New Jersey, USA.
[18]. London, T. (2007b). Improving the lives of the poor?. William Davidson Institute: Working paper.
[19]. London, T., & Hart, S. L. (2004). Reinventing strategies for emerging markets: Beyond the transnational model. Journal of International Business Studies, 35(5): pp350- 370.
[20]. Mangala K.P, Chengappa P.G. (2008), A Novel Agribusiness Model for Backward Linkages with Farmers: A Case of Food Retail Chain, Agricultural Economics Research Review ,Vol. 21,pp363-370.
[21]. Milgate, M. (1994), Fresh pineapple consumer research. Queensland Fruit and Vegetable Growers Limited, Brisbane, Australia.
[22]. Mohsin, Mohammad (1995), Economics of Small Business in Islam, Visiting Scholar Research Series No. 2, Jeddah: Islamic Research and Training Institute/ Islamic Development Bank.
[23]. Morduch, Jonathan (1999), The Microfinance Promise, Journal of Economic Literature, No. 37, pp. 1569-1614.
[24]. Nijssen, E., Lamperjee, N., Sloot, L. and Bunders, M. (1995). Private labels and shop formula (in Dutch). Food Trade 1 (January): 17
[25]. Prahalad, C. K., & Hammond, A. (2002). Serving the world's poor, profitably. Harvard Business Review, 80(9): pp 48-57.
[26]. Prahalad, C. K., & Hart, S. L. (2002). The fortune at the bottom of the pyramid. Strategy+Business, 26(First Quarter): pp2-14.
[27]. Prahalad, C. K. (2004). The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits. Upper Saddle River, NJ: Wharton School Publishing.
[28]. Punjabi, M. and V Sardana (2006). Initiatives and issues in fresh fruit and vegetable supply chains in India in P.J. Batt and J.J. Cadilhon (eds.). Proceedings of the international symposium on fresh produce supply chain management, December 6-10, Chiang Mai, Thailand, 115-125.
[29]. Quelch J.A. and D. Harding (1996). Brands versus private labels: Fighting to win. Harvard Business Review, 1996 Jan/Febr pp 99-109.
[30]. Rangan, V. K., Quelch, J. A., Herrero, G., & Barton, B. (2007). Business Solutions for the Global Poor: Creating Social and Economic Value. San Francisco: Jossey-Bass.
[31]. Stiglitz, Joseph E. (1990), Peer Monitoring and Credit Market, World Bank Economic Review, No. 4, pp. 351-66.
[32]. Walsh, J. P., Kress, J. C., & Beyerchen, K. W. (2005). Book review essay: Promises and perils at the bottom of the pyramid/The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits. Administrative Science Quarterly, 50(3): 473-482.
[33]. Webster, F.E., (2000). Understanding the relationships among brands, consumers and resellers. Journal of the academy of marketing science. 28(1), pp 17-23.
[34]. World Bank (1978), Employment and Development of Small Enterprises, Sector.
[35]. Yousri, Abdel Rahman Ahmad (1995), Small Industries in Developing Countries: Development and Problems of Financing from Conventional and Islamic Perspectives, (in Arabic), Visiting Scholars Research Series No. 1, Jeddah: Islamic Research and Training Institute/Islamic Development Bank.
[36]. Zimmer, M. R. and Golden, L. (1988). Impressions of retail stores: A content analysis of consumer images. Journal of Retailing, 64 (Fall): 265-293.
If you have access to this article please login to view the article or kindly login to purchase the article

Purchase Instant Access

Single Article

North Americas,UK,
Middle East,Europe
India Rest of world
Pdf 35 35 200 20
Online 35 35 200 15
Pdf & Online 35 35 400 25

Options for accessing this content:
  • If you would like institutional access to this content, please recommend the title to your librarian.
    Library Recommendation Form
  • If you already have i-manager's user account: Login above and proceed to purchase the article.
  • New Users: Please register, then proceed to purchase the article.