Why choose small enterprise development to help people out of poverty?
In many developing countries, increasing numbers of people enter the job market each year. Public Sector employment is often shrinking with structural adjustment programmes, and growth in the large scale private sector is very limited or stagnant.
Without jobs, landless people have no safety net. They are indeed the poorest of the poor. Migration into urban areas - usually slum areas - increases, where the vicious circle of poverty remains.
A bright ray of hope is offered by micro enterprise, which provides opportunities for increasing numbers of men and women to earn a living within their communities. In Kenya, for example, employment in the 'informal sector' (micro and small enterprise) is creating 97% of all new jobs.
Yet these people have little support, poor understanding and information on markets, and little opportunity to develop skills. Large numbers of copycat enterprises compete to sell low value products, so that for many, their earnings are very small and very insecure. Many enterprises fail or only just scrape a living.
When micro and small enterprises become more productive, they can:
Build Self Reliance
Help the most Vulnerable
Help move from Aid to Development
Phone: 44 (0) 1386 700130 Fax: 44 (0) 1386 701010
e-mail: info@aptenterprise.org.uk