Informality and Development

Question 1

Poverty penalty

Answer 1

The poor often consume low-quality, overpriced products because of
1. cost of distribution
2. intermediaries
3. local monopolies
4. low perceived purchasing power

Question 2

Social business

Answer 2

Dedicated to particular social objective; maximising access to credit for the poor; non-profit

Question 3

Social enterprise

Answer 3

Any innovative initiative with a social mission; can be profit or nonprofit