| Abstract |
This research analyzes the business model and the evolution of Venezuelan enterprises operating at the base of the pyramid (BOP), that is, located in popular sectors where their clients are low-income consumers. While these sectors constitute a high percentage of the population of Latin America, little research has been done regarding their business initiatives and models; therefore, the paper is focused on this subject. The research is qualitative and exploratory, using an ethnographic procedure within-depth interviews and following a multiple case study approach as a research strategy. The business models of ten new entrepreneurial initiatives located in the capital region and the city of Valencia are analyzed, based on the framework of six components and three decision levels proposed by Morris et al. (2005) for entrepreneurs. Results show that these initiatives have at least two components or decision areas poorly defined or consolidated, specifically: capabilities and internal processes, and positioning and strategy. This information is consistent with the fact that, since their founding, these business models have not evolved to a more advanced level at which companies develop sustainable competitive advantages. Also, there is a lack of congruence between the evolution of the business models and the aspirations of the entrepreneurs regarding the scope and growth of their firms. |