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Micro-entrepreneurship For Empowerment Micro enterprises are the primary engines of economic development, income growth and poverty reduction in much of the developing world. According to a World Bank report1, the formal SMEs contribute up to 60% of the total employment and up to 40% of the national income (GDP) in emerging economies. Despite their significant role, the growth of micro enterprises is limited on account of the following factors:
An essential first step towards development of micro-entrepreneurship is to understand the inter-connectedness between problems. We need to ask ourselves the following key questions:
Second, among the major challenges that confront us, is how the apparently conflicting objectives of economic viability (essential to sustainability) and inclusion (essential for benefits to reach the marginalised segments, particularly women) can both be met. Therefore, in order to realise the true potential of micro entrepreneurship, not only is there a need for collaborative, dynamic platforms that bring diverse stakeholders together to pursue shared goals but also to view each and every entrepreneur from the lens of a potential innovator and an agent of change.
Entrepreneurship for Empowerment
In order to address the problems of micro entrepreneurship in all its complexity at scale, as well maintain an intense focus on capturing individual aspirations and capabilities, there is a need for systemic change, aiming to deconstruct the conventional approach to entrepreneurship, breaking myths associated with it, and building a new belief system that views entrepreneurship as empowering. To provide support for micro enterprises and create a culture of entrepreneurship wherein needs and aspirations of each and every entrepreneur is taken care of, 'Entrepreneurship for Empowerment' programme - an endeavour of the Hong Kong and Shanghai Banking Corporation (HSBC) and Development Alternatives Group (DA), has been conceptualised. This programme prioritises the following objectives: 1) Rediscovering Entrepreneur-ship The programme has built a design-driven research process of ‘persona’ building to match the specific needs represented by various entrepreneurs and their changing aspirations. In order for individuals to transition to becoming successful entrepreneurs, the programme is committed to creating equal opportunities, bearing their social and environmental impact in mind, for those who are vulnerable. Embedded within the methodology is a progression map – serving as a mechanism for efficient and precise programme delivery tailored to individual needs while keeping in view the impact of the ecosystem forces. 2) Strengthening Individuals The programme works towards overcoming both external and internal barriers to implementation and to ambition. Through delivering knowledge and information, a substantial impact is being created. But retention of this knowledge and consequent access to equal opportunities -- not just for trainees, but for communities at large – can be sought only through a sustainable model. The programme is addressing the significance of a conducive market, but more importantly, building robust entrepreneurs. It is supporting peer-to-peer cross learning and identifying how potential entrepreneurs can be supported in an integrated manner. Skill development and enterprise support partnerships are being created. 3) Developing a Conducive Environment The aim of the programme is to unleash entrepreneurship within individuals, catering to their specific needs and aspirations. However, in the absence of a nurturing ecosystem, the unleashed energies will be stifled. We, thus, believe it is imperative to create a healthy ecosystem that fosters local and inclusive entrepreneurship. The programme is building not only budding entrepreneurs, but more importantly, it is addressing the significance of a conducive market, peer to peer learning and partnering with financial institutions. The programme recognises the immense work being done through various people in silos, but also addresses the need for convergence. It, thus, innovates platforms like regional coalitions that move multi-stakeholders to break out of their silos and work in synergy towards accelerating enterprise development. It also conducts melas that enable co-creation, rooted in the belief that restricted outreach and effectiveness of initiatives stems from the lack of inter-connectedness between stakeholders. With the aim of uncovering trigger points in the ecosystem, recognising and subsequently removing barriers, the programme works towards unlocking an environment where entrepreneurial ambitions may flourish. Significant milestones have been reached in terms of:
Usmaan, a 23-year-old entrepreneur from Raipur, Bhagwanpur used his experience of working with a cloth manufacturing company to set up a readymade cloth manufacturing centre. Not only has he set up an enterprise for himself, but looking at the need of income generation for women, he has ensured 95 percent women force in his enterprise. The women who were earlier not able to earn due to mobility issues - despite having the skills are now earning upto INR 100 per day. Most small-scale retailers in his vicinity have started buying from him. He has become a role model for aspiring entrepreneurs, demonstrating the concept of inclusive entrepreneurship. Development Alternatives aims to demonstrate impact at scale, through the establishment of approximately 30,000 new micro-enterprises or expanded businesses each year from 2022 onwards, through a network of ‘acceleration hubs’ run by civil society organisations. These network partners will then be supported to provide high quality enterprise support services through direct handholding and digital tools. The platforms will converge on the digital market place, which will facilitate knowledge exchange. We believe that the global goal of livelihood security for all will not be achieved by one platform alone but through the emergence of similar platforms in various geographies across the world. ■
Ankita Pant
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