Supporting Entrepeneurship in developing countries: Survey of the field and inventory of initiatives - Executive Summary

Submitted by Editor on 7 May, 2002 - 20:46.

There is growing evidence of a significant causal relationship between entrepreneurship, economic growth and poverty reduction. Small, micro and medium-sized enterprises (SMMEs) are often the backbone of the private sector in the developing world, creating jobs and providing a tax base for local government. And frequently SMMEs offer the only employment available to millions of poor people. Yet many developing countries have been unable to create and maintain the favourable environment needed to foster SMME development.

Potential entrepreneurs and many existing companies in developing countries need help to execute on their ideas and build successful businesses. Entrepreneurship support offers a new model for fighting poverty and ensuring economic growth and it has come to the forefront of activities to bridge the digital divide and deliver development aid. A significant number of ground-level initiatives are already underway. There are also several high-level initiatives in planning that may result in considerable resources being devoted to entrepreneurship support during the year ahead. The needs of this crucial sector must be understood to frame an effective and sustainable approach to modern development aid. Entrepreneurships support initiatives (ESIs) come in a variety of shapes and sizes, and they offer a range of services to SMMEs and entrepreneurs. We have selected sixteen initiatives that are notably successful, innovative, or representative of a particular type to illustrate the kinds of ESI services that are available and the methods that are being used to promote entrepreneurship. We have covered a range of programmes - from local community initiatives to large international efforts - but have emphasized international initiatives that work at a community level because that approach is growing in prominence and proving to be an effective model. A more extensive list of ESIs is presented in the Annexes to this report. The entries are grouped according to type and geographic region, and each includes a brief description of the activities, giving a quick but comprehensive overview of a broad range of ESIs. The inventory is intended as an organic, growing document; it represents a small step in cataloguing the array of entrepreneurship initiatives that exist, and we welcome input.

Even a cursory examination of ongoing ESIs reveals how this methodology for development aid is taking shape and the trends in the field. Wealth creation is increasingly seen as a vehicle for social change and social entrepreneurship is on the rise. Following the approach of a few trailblazing organisations, there is a wave of new initiatives that emphasize public/private partnerships and incorporate basic business principles, emphasizing accountability and measurable results. Careful screening of the participating entrepreneurs is a common trait. More efforts are tapping into the power of human connections by building relationships among like-minded individuals and organisations so they can share experiences and contacts. And of course, increasingly ICT is used both in the delivery of ESI services and as a foundation for successful SMMEs.

This survey of the field and inventory of initiatives aims to spur thinking about facilitating SMME development by looking at the various kinds of entrepreneurship support initiatives that are available and what they provide. It is intended as a resource for connecting like-minded ground-level initiatives, so they can exchange information, learn from one another and avoid duplication of effort. It is also intended as a report to the various international planning efforts currently underway; to inform their deliberations about the value-added they can bring to this area.

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