One of the primary goals of the Enterprise Surveys is to provide high quality data about the business environment based on establishments’ actual day-to-day experiences. This provides much needed information given how little is known about what businesses experience in developing economies. To raise awareness of the recently released Bangladesh 2013 Enterprise Survey, we provide a few highlights of the surveys below.
Kone Gninlnagnon is a young entrepreneur who dreams of exporting rice from Côte d’Ivoire to the world.
But he knows the quality of the rice must be improved and tested in the domestic market first. Thus, a new business idea was born: helping to make homegrown rice more competitive. “We cannot win the loyalty of consumers with bad quality rice,” he says. His project, “Riz Ivoire,” would promote the rice that comes from the heart of Côte d’Ivoire and help deliver high-quality rice to Ivorian dining tables. He also wants to encourage other Ivorian youth to invest in “rizculture.”
Now Gninlnagnon is one step closer to achieving his dream. His project won third place in the Start-up Competition at ICI 2014, the Fourth Côte d‘Ivoire National Investment Forum that took place in the city of Abidjan in January. While the three-day event focused on investment opportunities in the country’s key sectors like agriculture, industry, and infrastructure, the spotlight of the closing ceremony fell on entrepreneurship and the youth of Côte d’Ivoire, as they are the drivers of future growth and innovation in the post-conflict country. Côte d’Ivoire aims to be an emerging market economy by 2020. In 2013, the country’s growth rate was 8.7%.
This week marks the launch of the new, World-Bank supported Ethiopia Climate Innovation Center (CIC). The center joins a global network of CICs and is designed to support local Ethiopian businesses that are responding to the challenges of climate change by providing mentorship, financing, access to markets, and policy support.
While significant progress has been made in consulting civil society in national, regional, and global migration policy debates, it has proved hard to engage the business sector. This is to the detriment of corporate success, effective government policy, and migrants’ rights. The World Economic Forum Global Agenda Council on Migration focuses on forging alliances between business and government to maximize the benefits of migration.
One reason why business have been reluctant to engage is that in many countries migration has become a ‘toxic’ issue in political and public discourses, and businesses are concerned not to tar their reputations by engaging in this debate. In addition there can be tensions between the respective objectives of business and governments with regards to migration, for example flexible labour markets can be hard to reconcile with national security. To an extent this also reflects different priorities: ultimately business is concerned with stakeholders and governments with voters; businesses need to make profits and governments to win elections. And as a result business and government also have different time horizons for achieving positive results from migration.
"No single national score can accurately reflect contrasts in the types of corruption found in a country." Michael Johnston, 2001
Corruption comes in various forms - administrative corruption being one example, state capture (a.k.a. “grand corruption”) being another. Although administrative corruption is not necessarily the most damaging form for economic growth and private sector development in Russia, and while its occurrence appears to be declining in Russia, perceptions of “state capture” are worsening.
Please watch Women Entrepreneurship to Reshape the Economy through Innovation in MENA, at the European Development Days live on Tuesday October 16 at 11:00 AM cet
Across the developing world, women business owners are far more prevalent at the informal and micro-scale than growth oriented small and medium sized enterprises. Women still face an uneven playing field in education, employment, earnings, and decision-making power.
The Middle East and Northern African (MENA) region faces its own particular set of challenges. In the aftermath of the Arab Spring, the development of strong economies and opportunities for both men and women to pursue a livelihood without barriers is integral to the future of the region. There is an enormous enterprise and job creation agenda to be fulfilled in the Middle East. A recent study by the OECD notes that today, only 27% of women in the region join the labor force, compared to 51% in other low, middle and high-income economies, and only 11% are self-employed, against 22% of men.
A woman works in a small shop in Ghana.
Photo by Arne Hoel
What will it take for the world to wake up and realize the advantages of supporting women entrepreneurs in the developing world?
If that sounds like an odd question to be asking in the 21st century, just consider some facts. We know that globally women make up almost half the world’s workforce. And we know that in developing economies, 30-40% of entrepreneurs running small or medium sized businesses are women.
But here’s something you may not know – at least 9 out of 10 women-owned businesses have no access to loans. So, just imagine the frustration of a woman in a developing country, who has started a small business, is attracting a good clientele, has a business plan to grow her business, but can’t get a loan to expand. That's not an isolated story. It’s a frustration shared by many women in the developing world. And the frustration of those women sounds echoingly similar to the frustration still lingering in the voices of older women from rich countries, telling how some three decades ago they were refused bank home loans, despite having a guaranteed income.