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PurposeThe purpose of this paper is to examine inspiring ideas in which Japanese companies are finding innovative ways to tap into base of the pyramid (BOP) markets to increase their profit while simultaneously reducing poverty and contributing to BOP society.Design/methodology/approachThis paper examines a potential and some issues of Japanese business in BOP market through case analysis of Yakult Honsha Co Ltd and Nihon Poly‐Glu Co Ltd.FindingsThe paper reveals that Japanese companies have a particular aptitude and strength for BOP business. The paper have three findings: Japanese company has a source of BOP business; Japanese companies have aptitude and strength for BOP business; and the time is ripe for Japanese companies to break into the BOP market.Research limitations/implicationsThere are few cases of Japanese companies which are engaging in BOP business. It could be kind of difficult to get a general result on Japanese business.Practical implicationsThis paper shows that a high potential for Japanese companies to succeed in BOP market and some issues facing Japanese companies.Originality/valueThis paper is the first which analyzed some cases of Japanese BOP business and revealed a high potential of Japanese companies for BOP business.

AbstractThe present study aims to explore the relationship between governance conditions and absolute poverty reduction in BRICS countries from 1997 to 2011. The study employs Kao's cointegration followed by Fully Modified Ordinary Least Square (FMOLS) and Dumitrescu–Hurlin causality tests. The investigation is based on six institutional measures of governance conditions (government effectiveness, political stability and absence of violence, control of corruption, voice and accountability, regulatory quality, and rule of law) that explain how the poverty rate could be speeded up by deep‐rooted poor institutional quality. The study's major finding shows that rule of law is the significant governance condition that directly helps in poverty reduction in BRICS countries. Other governance conditions affect poverty rates via income and distribution effects. This supports the assertion that strict compliance to the rule of law is the significant governance condition for poverty reduction. Whereas, in the short‐run only economic growth significantly contribute to absolute poverty reduction. Therefore, BRICS countries should focus on growth‐enhancing sectors and strict compliance with the rule of law to achieve lower poverty rates.

The popularity of microcredit has grown in recent years, as more and more organizations view it as an important tool in the eradication of poverty. However, there exists considerable debate within development literature as to whether microcredit reaches the poorest of the poor (who are often the principal target of development initiatives that use microcredit as a tool), and furthermore, whether it serves as an effective tool for poverty reduction. This article provides reasons as to why microcredit may fail to reach the poorest, and outlines the main arguments in the impact debate. This article further argues that current evidence, which suggests a marginally positive impact of microcredit in reducing poverty, may not be significant enough to justify the vast amounts of funds that are channeled into microcredit activities under the premise of poverty reduction. Finally, this article provides recommendations to increase the effectiveness of microcredit in targeting the poorest and reducing poverty. Adapted from the source document.