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An Ideal Marketplace: For-profit Businesses Helping, Not Exploiting, the Poor
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An Ideal Marketplace: For-profit Businesses Helping, Not Exploiting, the Poor

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Can a company make money from the work of impoverished people in the developing world without taking advantage of them? For Patrick Byrne, the answer is a qualified yes. Byrne believes that he has found a way for his company, Overstock.com, to benefit while it helps developing-world artisans connect with developed-world customers. But for Chuck Waterfield, creator of Microfin — a software program he wrote for microlenders — the answer is a qualified no, at least as it applies to Compartamos, a well-known microfinance lender operating in Mexico. Both men spoke at this year’s University of Pennsylvania Microfinance Conference. Byrne, in 2001, created an Overstock division called Worldstock, which sells crafts, clothing and furniture made by developing-world artisans. His original idea for Overstock was to cut out middlemen in the retail industry by using the web’s expertise in logistics to sidestep the so-called “jobbers” who traditionally bought and resold retailers’ excess inventory.…

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