USAID Impact Photo Credit: USAID and Partners

Archives for Economic Growth

Entrepreneurs Spur Sustainable Growth and Contribute to Development Outcomes

Today, USAID celebrates National Entrepreneurship Day.

Entrepreneurs, both large and small, create jobs and spur sustainable growth that delivers benefits to people in the United States and around the world. Having spent part of my early career working to encourage investment in promising entrepreneurs throughout Africa, I’ve seen firsthand the transformations that can take place in peoples’ lives and communities when we help foster strong cultures of entrepreneurship.

In the lead up to Global Entrepreneurship Week, a worldwide celebration of innovators and job creators, USAID has partnered with other U.S. Government agencies to highlight the ways we can work with entrepreneurs to help them realize success. Every day, entrepreneurs in developing countries drive economic growth, create jobs, and contribute to development outcomes in USAID priority sectors including food security, global health, and access to energy.

Development Innovation Ventures grantee Off-Grid: Electric's entrepreneurs are lighting up Tanzania through more reliable, affordable, and sustainable electrical services. Photo Credit: Matthieu Young

Development Innovation Ventures grantee Off-Grid: Electric’s entrepreneurs are lighting up Tanzania through more reliable, affordable, and sustainable electrical services. Photo Credit: Matthieu Young

USAID recognizes the value in supporting entrepreneurs who advance market-based solutions using sustainable business models. Particularly in this current fiscal climate, enabling entrepreneurs to deliver development results that are sustainable beyond ongoing donor support is one of the best ways to leverage USAID funding. As a donor, our role is to help remove barriers that stand in the way of entrepreneurs starting and scaling their businesses, while also addressing market failures that limit the inclusion of poor and vulnerable populations. Our investments address common challenges facing entrepreneurs such as a lack of access to capital; limited availability of technical assistance, mentoring and peer networks; and a lack of awareness among investors regarding investment-ready enterprises.

Since 2010, the United States has budgeted about $4 billion annually to support programs related to entrepreneurship globally. USAID—particularly the Office of Innovation and Development Alliance, or what we call IDEA—has been proud to be a part of this ongoing commitment.

For instance, USAID is launching the Partnering to Accelerate Entrepreneurship (PACE) initiative to support entrepreneurial ventures that have the potential to lift some of the poorest communities in the world out of poverty. USAID will direct up to $10 million over the next three years to help develop the entrepreneurial ecosystem and scale enterprises in developing countries that offer market-based solutions in areas like food security, global health, and energy access. Today, USAID launched an open call for partnership concept papers (PDF) , inviting organizations to submit ideas on ways to partner and co-invest with USAID.

USAID also recently announced a new $4.1 million Global Development Alliance with Echoing Green, Newman’s Own Foundation, General Atlantic, Pershing Square Foundation, and Rockefeller Philanthropy Advisors. Called “Priming the Pump,” the partnership will invest in young social entrepreneurs in developing countries who are pioneering innovative new solutions to major development challenges.

These are just two examples of some of the USAID initiatives designed to harness the power of entrepreneurs to advance global development that we have forthcoming. Additional fantastic entrepreneurship efforts coming out of USAID include:

  • USAID’s forthcoming partnership with Yunus Social Business (YSB) to promote entrepreneurship and the development of “social businesses” in vulnerable and underserved communities around the world and to collaborate on the development of social business incubator funds in a targeted set of developing countries
  • The USAID-Skoll Innovation Investment Alliance, a Global Development Alliance with the Skoll Foundation and Mercy Corps, identifies and invests in innovative social entrepreneurs to enable them to scale up their business models for delivering sustainable impact in areas such as education, climate change, water, and food security.  The first organization supported through the partnership, Imazon, uses the latest mapping technology and satellite imagery to help local governments in Brazil stop illegal deforestation in the Amazon.
  • Development Innovation Ventures (DIV) is an investment platform that finds, tests, and scales new solutions to development challenges around the world.  DIV is currently investing in over 80 entrepreneurial solutions in eight sectors and 27 countries around the world. Many of these solutions are almost elegant in their simplicity. For example, DIV is supporting Georgetown University researchers who are using stickers, like the kind my daughters are always putting on their notebooks, to reduce road deaths in Kenya. DIV is also working with the U.K.’s Department for International Development (DFID) on a multilateral global investment platform called GDIV that builds on DIV’s success in supporting breakthrough solutions to global development challenges.

As we embark on Global Entrepreneurship Week, I look forward to not only learning about the impactful work of emerging social enterprises, but continuing to develop new ways USAID and the U.S. Government can partner to bring these game changers to scale.

Learn more about USAID’s Partnering to Accelerate Entrepreneurship (PACE) initiative.

Visit USAID on LinkedIn to read “My First Job” stories from USAID employees, partners and beneficiaries. Share your story on Twitter using #GEW2013!

Photo of the Week: Women Sing in West Africa

Women sing

Community members sing at the opening of a border information center in West Africa. In the continuing effort to facilitate West Africa inter-regional trade, USAID has supported the opening of several Border Information Centers. The Centers, located at the borders of Ghana and Togo; Ghana and Burkina Faso; and now Benin and Nigeria, bring transport information and assistance to traders, and truck drivers, and allows them to more easily transport goods and needed commodities across borders.

Learn more about our Mission of the Month: Nigeria and USAID’s work in the region.

Read some stories about how we’ve transformed lives in Nigeria.

Follow @USAID and @USAIDAfrica on Twitter and join the conversation with #MissionofMonth! 

 

Making it Easier for Small and Medium-size Enterprises to Do Business

Paige Alexander serves as assistant administrator for Europe and Eurasia

Paige Alexander serves as assistant administrator for Europe and Eurasia

This morning I spoke at an event at the Center for Strategic and International Studies (CSIS) as part of the launch of the 2014 World Bank Doing Business report. Doing Business 2014 is the 11th in a series of annual reports benchmarking the regulations that affect private sector firms, focused on regulations that impact on small and medium-size enterprises.

USAID has been a proud advocate and partner for the Doing Business report since it began, and we supported more than twenty countries in implementing the reforms documented in this year’s report – including in a majority of the top reforming countries.

Improving the business environment in our partner countries is demonstrating real impact and benefits for businesses. Numerous USAID Missions and projects around the world contributed to these reforms, benefiting millions of entrepreneurs who can now spend more of their time and money investing in their businesses—the engines of growth and employment around the world—rather than struggling to navigate a maze of unnecessary red tape.

Take the example of Iraq.  In Iraq, it used to take three months to start a new business. Entrepreneurs had to make separate trips to the provincial Chamber of Commerce, federal Chamber of Commerce, and a bank.  It took days just to determine whether a company name was already in use. Now, the entire process takes just 24 days. USAID helped Iraq’s Ministry of Trade establish a one-stop shop for Iraqis to register a business, reserve a name, and fulfill capital requirements. The Chamber of Commerce created an online database to check whether a trade name is already taken.

USAID has decades of experience with commercial law and regulatory reforms, particularly from the remarkable transition to vibrant, free-market democracies that are implementing the Doing Business reform agenda across Eastern Europe. From the beginning of Doing Business, we advised top-reforming countries on legal and regulatory changes, and on the more difficult issues of implementation.

For example, USAID partnered with this year’s top reformer, Ukraine, on credit, customs, and construction permits, supporting Ukraine as it moved up 28 spots to #112. While Ukraine’s ranking remains far below that of other economically developed nations, and the country still faces major issues in terms of its business climate–especially in protection of investors’ rights and contract enforcement–this year’s progress demonstrated that putting political will behind reform can yield results.

We are working with reformers in the Government of Kosovo, the #4 reformer worldwide, on reducing capital requirement for starting a business, registration fees, and the time to register a business. Since 2010 Kosovo has reduced the number of procedures required by a third, reduced the time required by 22 days, and reduced the cost by 16%.

USAID success extends far beyond the Europe and Eurasia region. In Burundi, USAID helped with revision of the land code, supporting a national education campaign about land registration and supporting implementing ministries in the new registration process. Since 2004, the time to register property has declined by 38%. USAID provided technical assistance to streamline cargo processing times and reduce border delays in Rwanda, decreasing the time to export by 57% since 2006. In Guatemala, USAID supported online business registration, decreasing the time to register a business by 50% since 2004.

USAID is proud of our record of support for legal and regulatory reforms–but indicators only tell part of the story. As echoed by my fellow panelists, reform implementation–the key to achieving the intended development impact–remains incomplete. To transform aid recipient countries into attractive investment destinations, governments must implement and enforce broader and deeper reforms that extend beyond technical solutions and also embrace greater transparency, increased interaction between civil society and government, and improved governance–factors that are so closely correlated with economic growth.

USAID will continue our work to make it easier to do business, while also focusing on integrating increased stakeholder participation and good governance as essential components of our reform programs, as well as supporting the implementation of reforms to create conditions for sustainable economic growth.

CSIS streamed the event and tweeted highlights.

From the Field in Madagascar: USAID Food Security Program Improves Livelihoods

As part of USAID’s 52nd birthday celebration, USAID/Madagascar shares a story of one woman who has benefited from a food security project. 

Sitting in the shade of an old mango tree, a group of villagers is intently listening to a middle-aged woman reading aloud from a booklet in her hands. The woman is Philomène, the ‘Treasurer’ of the local Village Savings and Loans association, and she is making her weekly report to the members.

Philomène (4th from left) volunteered to keep the VSL association’s books Photo credit: CARE International/Madagascar

Philomène (4th from left) volunteered to keep the VSL association’s books
Photo credit: CARE International/Madagascar

We heard about Philomène during a field visit to a food security project implemented by our partner CRS. The team was in a small village called Ampasimbola, in eastern Madagascar. Philomène is a farmer and she has been tilling the land for as long as she can remember. She is a single mother of six children, four of which are still in school.

Although Philomène puts a lot of effort into her work, she hardly produced enough food to feed her family. It was a challenge for her to make ends meet; on occasion, her children missed school to stay home and help her do farm work, her only source of income.

When USAID’s food security program started in Ampasimbola in 2010, Philomène did not think twice about joining the Village Savings and Loans association. She even volunteered to keep the books for the group. These village-level savings banks allow members to contribute some amount on a regular basis. They can then request loans with soft repayment terms and conditions. Philomène seized the opportunity to take out a loan and start a small restaurant offering doughnuts, coffee, fish, and even second-hand clothes to increase her income.

With hard work, Philomène’s restaurant quickly thrived. She soon had to choose between continuing farm work that brought home hardly any money, or focusing on a more lucrative and rewarding activity. She decided to drop farming— a savvy decision, because not only did she make substantial profits from the sale of food but she also received payments of interest from investing her savings back into the Village Savings and Loans association.

Philomène’s livelihood has improved and she is now able to send her children to school regularly, and pay for the annual school fees, Ariary 43,000 or about $22 dollars without any problem. The hungry season, which she had earlier coped with eight out of the twelve months per year, is today but a bad dream. Thanks to her contribution to the Village Savings and Loans association, Philomène extended her hut after two years and added a kitchen and a bathroom. She proudly bought new kitchen utensils and other household equipment, and was able to decorate her home.

I’m no longer alone. In our VSL group, we’re like brothers and sisters. We counsel one another, and we share knowledge and experiences. It’s a real new life for me!” says a proud Philomène.  In her spare time, Philomène engages in development and other social activities, and the community seeks her help for advice or assistance when visitors come to the village and seek accommodation for the night. Philomène can help because her hut is now large enough to put up guests. She is now, more than ever, an important member of the community.

Follow USAID Madagascar on Facebook and Twitter for ongoing updates in the region.

Join the #USAIDProgress conversation on Twitter and learn about our other successes!

Empowering Africa’s Next Generation Through Education

Education, equal opportunity, empowering women and youth, these ideas form the foundation of our program in the Office of American Schools and Hospitals Abroad. In a recent trip with two of my colleagues to South Africa, we experienced firsthand how powerful a marriage of American and African ideas and values can be in propelling not only South Africa, but the entire continent forward.

The American writer and historian, James Truslow Adams described the American dream as one where, “life should be better and richer and fuller for everyone,” and while that is part of the American dream, is it part of the African dream as well? Half an hour outside the bustling city of Johannesburg, the African Leadership Academy (ALA) is instilling American values by providing its students the base for becoming entrepreneurial leaders. Each year, 100 gifted students between the ages of 15 to 19, from over 40 African countries, are accepted into ALA where they are empowered and given the tools to become the next generation of African leaders.

Bonga, a recent graduate, discusses his time at the Academy. Photo credit: Caitlin Callahan, USAID

Bonga, a recent graduate, discusses his time at the Academy. Photo credit: Caitlin Callahan, USAID

My colleagues and I were lucky to spend part of our morning with Bonga, a recent ALA graduate. It was evident in the way Bonga spoke how central the African Leadership Academy was in motivating him to continue his education, innovate, and bring economic prosperity to his community. Bonga, like most of his peers, plans to attend a four-year university and dreams of an integrated and affluent Africa. USAID assistance helps improve campus security, purchase learning resources for its library, and upgrade dormitories for student housing to prepare students like Bonga for success.

Encouraging hands on experience and service to the community, the Academy provides students with the tools and knowledge base to work towards transforming the African continent.  ALA harnesses the entrepreneurial spirit and encourages its students to create and manage their own business ventures in a safe and comfortable environment. Since its inception in 2008, graduates of ALA have started 38 non-profit and for profit enterprises, addressing community challenges while furthering Africa’s long term stability and economic prosperity.  In support of USAID goals to promote inclusive development, this fall, the majority of students enrolled at ALA will be female. Educating a girl means that as a woman, she is empowered and more likely to participate in development efforts in political and economic decision-making.  It has also been shown that with each ten percent increase in the number of girls who attend school, a country’s gross domestic product (GDP) increases on average by 3 percent.

Through its innovative approach and integration of American ideas, the African Leadership Academy is well on its way to making a difference in Africa and USAID is proud to be a supporter. Watch the video below to learn more.

Cultivating Entrepreneurial Spirits in Youth to End Extreme Poverty

After attending the World Bank’s Global Youth Summit  and participating in several discussions on young change makers and the post-2015 development agenda, I was left with an impression that the global community is at the precipice of truly elevating the youth platform on major issues in development. This year’s summit theme was on “Youth Entrepreneurship: Cultivating an innovative spirit to alleviate global youth unemployment” and included a case competition in addition to a series of discussion panels.

Dillon Roseen (far left) is an intern in the Legislative and Public Affairs Bureau at USAID. He is pictured here at the World Bank Youth Summit with a few other participants. Photo credit: USAID

Dillon Roseen (far left) is an intern in the Legislative and Public Affairs Bureau at USAID. He is pictured here at the World Bank Youth Summit with a few other participants. Photo credit: USAID

Young professionals at USAID had the chance to engage with our international colleagues on issues facing young entrepreneurs, particularly in developing nations. We actively shared USAID resources relevant to our young colleagues on programs like the Development Innovation Ventures (DIV), Higher Education Solutions Network (HESN), Fall Semester, and USAID’s Youth in Development policy which has the goal to “improve the capacities and enable the aspira­tions of youth so that they can contribute to and benefit from more stable, democratic, and prosperous communities and nations.” At the summit, my “brothers and sisters” in development, as one panelist put it, joined us via livestream from Mexico City, Freetown, Addis Ababa, Bucharest, Juba, and many other cities around the world. Perhaps what I was most impressed with the entire day was the enthusiasm and tenacity with which these international change agents engaged the panelists during the Q&A, often jockeying for a turn to ask their potent and thought-provoking questions regarding corruption, political engagement, and technical infrastructure. Seeing their passion to contribute to and enliven the discussion proves that young people are catalyzers for changing the world and ending extreme poverty within our lifetime.

Even still, for my generation, which currently account for almost ¼ of the world’s population, there are many barriers and limitations for youth involvement, especially in developing countries. UN Envoy on Youth, 29 year-old Ahmad Alhendawi, noted that the average age for the general African population is 18 whereas the average age of politicians is over 60. With this discrepancy, it’s no wonder youth concerns appear to go unheeded. Corruption, poor infrastructure, and lack of capital, all major obstacles for young entrepreneurs across the developing world, are unfortunate and unacceptable realities that must be addressed by our leaders.

My major take away from the Summit was this: much is being done to shift conversation towards youth engagement, but there is still much to be done to translate this talk into action. I challenge the leaders in the development world to take the first step by following the example of the UN. Aid agencies and members of the international development world should appoint a designated Youth Coordinator for their respective organizations, someone who can concentrate the organization’s efforts to respond to the needs of young people so they are equipped with the knowledge and resources needed to advance the global community. To do this, he or she must work to arm young leaders not just with resumes and CVs, but with business plans and investment opportunities. Barriers must be reduced for political involvement and entrepreneurial spirits must be encouraged. USAID’s Youth in Development policy commits the Agency to do just that.

As I left the Summit, I mulled over a quote from John F. Kennedy that Global Poverty Project Co-Founder and CEO Hugh Evans shared with us:

“We need men who can dream of things that never were and ask why not.”

What struck me the most about this quote was the realization that my brothers and sisters across the world, despite the limitations we may face, are not only living by this quote but are inspiring others to join them. I hope you’ll join me and other young leaders as our generation fights to end extreme poverty.

Video of the Week: “Artisans in El Salvador Flourish”

USAID Small and Medium Enterprises Development Program, in alliance with SIMAN Stores, recently launched “ARTEC.A.”, a Central America-wide brand to distribute handicraft products by Salvadoran artisans in SIMAN department stores throughout the region. During the months of August and September, 30 artisans will be selling their products at the 12 SIMAN stores in El Salvador, Costa Rica, Nicaragua and Guatemala. The products include decorative handicrafts, toys, jewelry and clothing items, among others.

The USAID’s program has contributed with technical assistance to help the artisans secure sales with SIMAN, as well as innovating and improving their design, production and distribution processes. Through these initiatives, USAID/El Salvador fulfills some of the commitments made by the governments of the United States and El Salvador in the “Partnership for Growth,” specifically those related to solving the factors that cause lower productivity of tradables.

Communities in Cote d’Ivoire Benefit from USAID’s Investments

USAID is helping communities in rural Cote d’Ivoire develop economic resiliency. Through our partners SAVE the Children and AVSI, we are supporting several types of economic strengthening activities, all of which increase the productive resources available for families. Through this work, we target the families and caregivers of children orphaned or made vulnerable by HIV/AIDS.

As they gathered for their savings group meeting, group members met us with a traditional welcome. Andrea Halverson. Photo credit: Andrea Halverson, USAID

As they gathered for their savings group meeting, group members met us with a traditional welcome. Photo credit: Andrea Halverson, USAID

In the mountainous, western city of Man, near Cote d’Ivoire’s border with Liberia, we met women gathering for their regular community savings group meeting. This region was one of the hardest hit during Cote d’Ivoire’s civil unrest. With poverty rates increasing over the past decade, savings groups combat a common problem in developing countries: lack of access to credit. Through these self-selected groups, members (usually all-women) will share a small portion of their money at each bi-monthly meeting, and are eligible to take loans, with interest, from this shared pool. At the end of the group sharing cycle, the amount saved is paid out to the group members. The additional money is making a difference in their lives and the lives of their children. Almost every woman uses her savings for school fees and school uniforms for her children.

Children watch as the community members cook the Attiéké, the final step in its production. Photo credit: Andrea Halverson, USAID

Children watch as the community members cook the Attiéké, the final step in its production. Photo credit: Andrea Halverson, USAID

In addition to savings groups, we also visited a community who had received start-up capital to fund a small business activity, producing a local delicacy called attiéké. Similar to couscous, attiéké is a fermented Ivoiran side dish, highly sought after in the region. Through the donation of a mill and a creative cassava partnership, the women had what they needed to start their small business. They are now making and selling attiéké. With pride, women told us of their informal distribution channels that stretched all the way to Mali. These and other investments are helping shape the future of Cote d’Ivoire, and reducing the vulnerability of Ivorian children by using profits to ensure they can enroll in school.

Page 2 of 14:« 1 2 3 4 5 »Last »