This 5+ billion or so at the BoP, segments very approximately as follows:
Low income (USD 5-8 a day): est. 2 billion people:
Some secondary education, have skills to enter the market, usually have semi regular incomes (drivers), in rural areas may own land, conduct transactions in both the formal and informal sectors, may have TV’s, mobile phones and bicycles, and strive for greater education, higher paid work and good housing. These are natural candidates for appropriate and affordable BoP products and services.
Subsistence (USD 2-5 a day): >2.2 billion people:
Poorly educated and low skilled, daily labourers, earnings not steady, often only one meal a day, live in slums or rural villages, mostly engage with the informal sector, no bank accounts or access to formal credit. These are challenges for BoP to overcome.
Extreme Poverty (15% less than USD 2 a day): >1 billion people:
Lack basic necessities, may be bonded labourers, poor health—these things largely preclude them in engaging in the markets and BoP activities