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Entrepreneurship

A Better Life for the Developing World's Self-Employed

Jobs Group's picture

Drying cowpeas, Ghana. Photo: Flickr/53871588@N05 (TREEAID)

With high levels of self-employment in developing countries (see our recent blog “Self-Employment and Subsistence Entrepreneurs?”), policy makers are weighing various types of interventions to reduce poverty and improve productivity. The options for them fall into two key categories: (1) helping raise the returns for the self-employed in the activities and sectors where they are now; and (2) helping move them from self-employment into higher paying wage jobs. In this blog, we share the perspectives of three experts: David Margolis (Research Director, Centre National de la Recherche Scientifique, University of Paris), Tim Gindling, (Professor of Economics, University of Maryland), and Gary Fields (Professor of Economics, Cornell University).

Self-Employment and Subsistence Entrepreneurs?

Jobs Group's picture

Selling fruit on the street in Cuzco, Peru. Photo: Flickr @eye1

More than half of all workers in the developing world are self-employed, mainly in agriculture. But unlike in the developed world, self-employment is typically because of constraints (like a lack of available wage jobs) – not by choice. In other words, it’s a question of survival. In this blog, we share the thoughts of three experts on the challenges these people face: Gary Fields (Professor of Economics, Cornell University), David Margolis (Research Director, Centre National de la Recherche Scientifique, University of Paris), and Tim Gindling, (Professor of Economics, University of Maryland).

Weekly Wire: The Global Forum

Roxanne Bauer's picture

These are some of the views and reports relevant to our readers that caught our attention this week.

Aid Transparency Index 2014
Publish What You Fund
The 2014 ATI results follow the trends observed in previous years. A lead group of organisations are making significant and continuous improvements to the information they publish on their current aid activities – and many others have taken steps towards improving their publication in 2014 – but the majority have not made significant progress and continue to lag behind.
 
12 ways to communicate development more effectively
The Guardian
From fundraising to behaviour change, communications is key to development work. Our panel explain how to do it better. Sina Odugbemi, senior communications officer (policy), World Bank, Washington DC, USA, @WorldBank:

  • Make a case for development spending: Polls in Europe consistently show that support for development is wide but shallow. This is due to the limited power of emotive campaigns. People need to know if any of their money is doing permanent good or whether the cynics are right. That kind of case-making is, sadly, not done consistently and rigorously.
  • Avoid promoting quick fixes: What that does is provoke disillusionment down the road. We need to discourage young people particularly from thinking complex problems can be solved with a rush of energy and cool new tools. We need to be communicating that many tough challenges will require stamina and sustained effort and commitment.

Media (R)evolutions: Mobile Attracts ICT Start-ups and Entrepreneurship

Roxanne Bauer's picture

New developments and curiosities from a changing global media landscape: People, Spaces, Deliberation brings trends and events to your attention that illustrate that tomorrow's media environment will look very different from today's, and will have little resemblance to yesterday's.

The increasing penetration of mobile services and mobile internet is opening up opportunities for innovation, especially in emerging markets. This can be seen in the health sector, financial services, and many other fields, where ICT start-ups and small and medium enterprise (SMEs) are working with mobile services to create business and jobs. The World Bank reports that "9 out of 10 jobs in developing economies" come from the private sector, and that "The main thrust of that comes from micro-, small-, and medium-sized enterprises, especially in technology sectors—a recent study argues that 3 jobs are created in a community for every new high-tech job." 

The following graph shows the distribution of ICT start-ups and SMEs in relation to the number of mobile subscribers. In developed countries, technology firms and internet providers have been at the forefront of innovation, but in emerging markets mobile operators are increasingly leading the way.
 

 

Africa Impact Evaluation Podcast: Economic Empowerment of Young Women in Africa #AfricaBigIdeas


When it comes to helping young women in Africa with both economic and social opportunity, what does the evidence tell us?  Broadcaster Georges Collinet sat down with researchers and policymakers to discuss the hard evidence behind two programs that have succeeded in giving girls a better chance at getting started in their adult lives.

Behind the Scenes of 'Startupland': A Documentary that Tells the True Stories of Entrepreneurs

Toni Kristian Eliasz's picture


Try to search for stories that feature the growing pains and gains of growth-oriented technology startups – content that is not only entertaining, but of high quality and most important, educating. It is a surprisingly hard task in today's economy, where entrepreneurship is booming again.

Weekly Wire: The Global Forum

Roxanne Bauer's picture
These are some of the views and reports relevant to our readers that caught our attention this week.
 

Please Do Not Teach This Woman to Fish
Foreign Policy
Is there anyone out there who doesn't think small business is the lifeblood of any economy? From Washington to Warsaw, politicians and pundits just can't speak highly enough of plucky entrepreneurs. Even in poor countries, entrepreneurship is one of the most important forces underpinning economic growth, but the best way to raise living standards and reduce poverty is not necessarily to make everyone an entrepreneur. So why do so many costly development programs apparently ignore this fact? Once upon a time, people who wanted to fight poverty believed in direct approaches that solved identifiable problems one by one. If you wanted to make farmers more productive, you gave them fertilizer. If you wanted to boost manufacturing, you set up factories. To help both of these sectors grow and export goods, you built roads and ports. These kinds of investments quelled hunger and raised incomes in many countries. But recently, an indirect approach arose with promises of still greater benefits.

Where Next for Aid? The Post-2015 Opportunity
ODI/UNDP
This joint ODI-UNDP paper looks at whether development aid will remain important in the post-2015 era, and asks how the old aid model should change in response to a dramatically new world and new sustainable development challenges. The paper suggests that the label “international public finance for sustainable development” – or IPF4SD – is a more accurate description of the types of interventions that need to be funded in the post-2015 era. This finance will also be needed over the long-term. The authors suggest ways in which these funds could reliably be raised over the long-term, as well as how the architecture which mediates IPF4SD could be improved.

2014 India Development Marketplace Finalist Story: Selco - Providing those in slums access to productive lives; one solar battery at a time.

Cristina Navarrete Moreno's picture

One year ago, Kumar began renting out 40 Selco solar-powered batteries to the people living in his slum community in the heart of Bangalore. Prior to this, 400 families were left to rely on cheap, easily breakable lights, dangerous and flammable kerosene lamps, or simple darkness. Without affordable energy, the inhabitants of Kumar’s slum lose hours of otherwise productive time that would allow them to build a pathway out of the slum, and into a secure life. Within months, demand for Selco’s rechargeable batteries sky-rocketed and Kumar increased his inventory to 86. Now, he is requesting yet another 50.

Campaign Art: Mine Kafon

Roxanne Bauer's picture

People, Spaces, Deliberation bloggers present exceptional campaign art from all over the world. These examples are meant to inspire.

This week, the United Nations and countries around the world will observe International Mine Awareness Day on April 4, 2012, as they have every April 4 since 2006.

The following video captures the "Mine Kafon" (Mine Detonator), a wind-powered device designed and built by hand by Massoud Hassani.  It is heavy enough to trip land mines as it rolls across the ground but 120 times cheaper than traditional techniques.  Hassani drew his inspiration from his childhood on the outskirts of Kabul, where he and his younger brother would play with their homemade, wind-powered toys. These toys would sometimes be blown astray, rolling out into the desert amongst landmines, too dangerous to retrieve.

Mine Kafon

Female Entrepreneurship: What Support Programs Should Do (and What They Should Avoid Doing)

Xavier Cirera's picture
Take a look at the nine points listed below, and think about the various support programs for women entrepreneurs that you may be familiar with. Have you seen these factors before?
 
  • Ignore gender differences
  • Create curriculum around PowerPoint (Stand and deliver)
  • Emphasis on existing idea or opportunity
  • Use of big business examples
  • Use of industry standards
  • Reliance on banks as start-up funds
  • Primarily including male instructors and speakers
  • Assumptions about firm size
  • Assumptions about linearity of growth


This is a list of what NOT to do when designing and implementing successful support programs for women entrepreneurs, as suggested by Prof. Patricia Greene of Babson College at a recent presentation at the World Bank Group. Her seminar was the first in a series on "Women Entrepreneurs: A New Approach to Growth and Shared Prosperity."


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