Capital equipment as a service : emerging models for equipment businesses in low and middle-income economies

Abstract

Capital equipment is a critical component of almost every industry and is used to create valuable goods and services for the end customers. However, the initial cost of acquisition and subsequent running costs associated with these equipment pose a significant barrier to young businesses. While servitizing capital equipment is a proven method of increasing access to these machineries in many high-income countries (HICs), the benefits of servitization often do not extend to low- and middle-income countries (LMICs). In this thesis, I examine the capital equipment ecosystems of both HICs and LMICs, with a focus on the stakeholders involved. I also explore both the challenges facing equipment businesses when operating in LMICs and the innovative solutions being implemented by successful LMIC service businesses. Based on these examples, I offer recommendations for budding service-based equipment business that are working to improve affordable access to capital equipment in resource-constrained settings.