In today’s diverse business landscape, startups come in all shapes and sizes, each with a unique mission and purpose. From pet product subscription services to innovative drone delivery solutions and user-generated content gaming platforms, startups exemplify creativity and innovation.
However, beyond pets, drones and gaming, what if startups could go further and support marginalized communities? What if they could directly combat poverty and its adverse effects on society? There is ample opportunity for startups with social impact.
Significance of Startups
Before diving into this topic, it’s essential to understand the significance of startups and how they function. Startups are entrepreneurial ventures primarily focused on bringing a product or service to the market. The ventures often lack a fully developed business model or adequate capital to proceed to the next stage. Typically, startups are funded by their founders and later investors.
The growth of startups relies on public interest, trust and support for the product or service. The importance of startups lies in filling gaps in the business landscape by identifying unmet needs or underserved markets. Startups with the potential to disrupt the status quo are created by transformational entrepreneurs who aim to establish vibrant companies, generate employment and offer new goods or services to previously neglected markets.
Identifying unmet needs and targeting underserved demographics naturally lends itself to providing a product or service for those in need, including the working poor, people living in poverty and marginalized communities. This identification creates space for startups with social impact.
Opportunity in Underserved Communities
Marginalized communities can be found in various settings across countries, industries and communities. Some examples of underserved communities include:
Low-income individuals depend heavily on public transportation, especially in cities where car ownership is expensive and impractical for many. Relying on public transportation can be unreliable and complicated, affecting workers, commuters, school children and more.
Rural laborers in developing economies, who mainly operate in the informal economy, lack access to essential protections like maternity leave, trade unions and compliance with labor laws. Work deficits are prevalent in rural areas, leading to employment challenges and insufficient social protection, resulting in the exploitation of low-income workers, child laborers, pregnant women and mothers and migrants.
Workers face gender disparity in job opportunities and wages, especially in developing countries. With approximately 2.4 billion women facing unequal economic opportunities, many countries still do not guarantee equal pay for equal work. Women face job restrictions in various forms, including formal training, job opportunities, representation in specific industries, compensation and proper health and maternity benefits. Specifically, women in Latin America and the Caribbean have less than three-quarters of the legal rights in the workplace than men.
Individuals lack financial literacy and participation, specifically in developing economies. Financial literacy plays a crucial role in poverty reduction. People struggle to make informed financial decisions without a basic understanding of financial concepts. Financial ignorance results in higher transaction fees, larger debts and higher interest rates on loans. It also prevents individuals from investing, saving for retirement and making the most of their money. For marginalized individuals with limited resources, this lack of financial literacy exacerbates the challenges they face, making it difficult to meet basic living needs on top of low and unstable incomes.
Venturing Beyond the Norm
To address the needs of marginalized communities and underserved markets, several startups with social impact have emerged as pillars of change. The startups below are taking proactive steps to combat poverty and provide equitable opportunities to the very issues previously examined.
Treepz
Treepz is a TransitTech solution modernizing public transit in Nigeria and expanding throughout Uganda, Ghana and other African countries. Treepz makes transportation more equitable and reliable and improves accessibility for underserved communities. In Nigeria’s largest city, Lagos, Treepz is building strong communities, addressing transit deserts and enhancing the quality of life. Treepz CEO is quoted saying, “We wanted to give people a better way to commute with predictability, where they can know when the bus will get here, the certainty that they will have a seat on the vehicle, that it’s a decent vehicle and a safe one.”
Karya
By providing ethical digital work opportunities to rural Indians and sharing profits with the workers, Karya seeks to lift rural communities in India out of poverty while emphasizing fairness and equitable compensation. India has 230 million people living in poverty, with no clear path out. Karya has now provided more than 30,000 rural workers in India with fair compensation for data collection.
Laboratoria
An initiative empowering women to pursue careers in technology and bridging the gender gap in the Latin American tech industry, ensuring that more women have access to opportunities in this sector. Laboratoria was started in Peru, as women comprise less than 10% of the technology industry. Laboratoria has helped more than 3,300 women in Brazil, Chile, Colombia, Mexico and Peru; about 85% of those have landed jobs in the past two years.
Pluang
An app designed to help Indonesians diversify their investments and increase financial literacy, providing first-time investors access to financial education and asset class diversification. Indonesians scored only 38% in the latest financial literacy assessment, and less than half have formal savings accounts. Now, Pluang has more than 3.5 million users and is working to remedy these financial limitations.
Championing Change
These startups address marginalized communities and play a vital role in combating poverty and offering equitable opportunities for all. As noted, these startups would not be as successful without widespread need, public interest and support. Dedication to positive social impact is becoming increasingly important. Founders and investors are backing up words with actions by creating and supporting these conscious business ventures and startups with social impact. While there are various needs that startups can fill, from pet products and gaming to affordable nutrition and increasing financial literacy, it’s exciting to see transformational entrepreneurs making efforts toward social good.
–Kailey Schwinghammer
Photo: Flickr
Early Education in Kosovo
Impact on Children
The country has a population of about 1.8 million people, with the average age being approximately 30 years. In 2021, only 15% of children aged 3–4 years old gained an education. Among rural and minority communities, that number decreased to 10%. The United Nations Children’s Fund (UNICEF) plans on improving food availability in schools to incentivize parents to enroll their younger children.
Rural communities are disproportionately affected by infrastructure issues and receive fewer options for health care and education. Minorities such as the Roma, Ashkali and Egyptians also require more assistance. As of 2021, 23% of Kosovar children live in poverty. Poverty plays an important role in whether or not young children attend primary school education. Children in richer households are twice as likely to attend lower secondary education and four times as likely to attend upper secondary school than their poorer counterparts.
Access to health care also impacts access to education. Minority groups have more difficulty accessing health care and are unable to enroll their children in schools. In minority communities, the infant mortality rate is twice the national average and malnutrition plagues children throughout Kosovo. Even so, 84% of children attend pre-primary school programs, a 9% increase from 2014. As of 2021, 80% of 7–14-year-olds are literate and 88% can correctly identify numbers, however, under 50% retain skills past a Grade 2 level.
Teacher Pay
Teachers in Kosovo went on strike twice in the past four years, seeking an increase in pay. In 2019, teachers demanded a pay increase of over 30%. This was prompted by a proposed law that would raise pay for government employees. In Kosovo, the average private sector salary is €370, with public sector salaries averaging €520. These strikes proved successful. In September 2022, teachers once again went on strike, demanding an additional €100 per month to support themselves and their families.
Improvements
Kosovo’s National Development Strategy Plan aims to increase the number of children enrolled in early education. This plan seeks to provide young kids with basic skills to further their schooling and widen their future employment opportunities. Having children in class during the day allows their parents to join the workforce, generating money for their family and strengthening the economy.
For the entire Kosovo population, a total of 130 institutions serve as early education centers. As of 2017, Kosovo has 42 public kindergartens. Four professors at the University of Prishtina in Kosovo emphasize the importance of integrating technology into early education. Majlinda Gjelaj, Kastriot Buza, Kyvete Shatri and Naser Zabeli conducted a 2020 study about incorporating new technology into the curriculum. This study suggests that the addition of new tech improves communication and development among preschoolers. Through the Kosovo Education Strategic Plan and the Kosovo Curriculum Framework, the government aims to create a functional digital economy. It believes that students acquiring technical knowledge alongside literacy may be the best way to achieve this outcome.
To ensure that early education opportunities in Kosovo are equitable for the entire population, the World Bank has highlighted laws and other information that can be utilized. The Department of Social Welfare puts children into foster families that share their ethnicity and religion, as outlined in the Law for Social and Family Services. Families can receive funding under the Social Assistance Scheme. This welfare initiative stands out as the single government program that directly targets poverty in Kosovo. Over 28,000 families benefit from this, including over 55,000 children. With more reform, such as making school compulsory for ages 3-5, this program can provide for over 80,000 children in the country.
Early Education in Kosovo continues to improve with the aid it receives from both the Kosovar government and international organizations.
– Abigail Dudley
Photo: Flickr
Addressing Dire Prison Conditions in Lebanon
Background: Lebanon’s Economic Crisis
The root problem of these dire prison conditions in Lebanon is the current economic crisis and rise of poverty. The distressing extent of poverty and food insecurity in Lebanon stems from a decline in economic activity, political instability and the escalating cost of living.
Between November 2021 and January 2022, Human Rights Watch carried out an extensive survey encompassing 1,209 households in Lebanon. Approximately 70% of households reported experiencing difficulties in meeting their financial obligations or consistently falling behind on basic expenses. The survey results underscore the gravity of the situation and how these experiences affect the current prison conditions in the country.
The budget allocated to the interior ministry, responsible for prison management, has indeed seen official increases in recent years. However, the dramatic devaluation of the currency, with the lira losing 98% of its value since 2019, coupled with skyrocketing annual inflation rates, has gradually diminished its effective purchasing power. Inflation further compounds the challenge for families who find it increasingly difficult to purchase additional food to supplement the prisoners’ already meager rations.
The Harrowing Prison Conditions
These budget reductions and high rates of inflation that have afflicted Lebanon since 2019 correlate to the poor state of its prisons.
While family visits have been reinstated, the escalating inflation rates and exorbitant costs of food and fuel have presented formidable obstacles for numerous families who would otherwise provide assistance to their incarcerated loved ones. Simultaneously, the surge in demand for prison-provided meals has coincided with soaring food prices. These challenges along with the devaluation of the Lebanese currency make it challenging to meet financial obligations to contracted food suppliers.
Numerous correctional facilities throughout Lebanon are grappling with severe overcrowding. This over-capacity is a result of a surge in crime rates, protracted trial proceedings leading to delayed releases, and the incapacity of many inmates who have completed their sentences to meet the necessary fees for their release. Detention facilities throughout Lebanon have a collective capacity of 4,760 individuals, yet they currently hold around 8,502 people, of whom only 1,094 have received sentences, according to the Internal Security Forces, responsible for prison management in Lebanon.
The extent of overcrowding within Lebanon’s prison system is deeply troubling and has led to a deterioration in humanitarian and living conditions, causing a decline in health care, food accessibility and overall security.
Alongside budget reductions, incarcerated individuals are being denied vital medical care. In 2018, more than 800 prisoners were transported to hospitals, whereas in 2022, only 107 received such medical attention, despite the overall prison population remaining consistent.
The International Committee of the Red Cross’s (ICRC) Efforts
In 2019, the International Committee of the Red Cross (ICRC) engaged in the refurbishment of specific detention facilities, in collaboration with the detaining authorities. It has restored the ventilation system at Rihaniyeh Military Prison and introduced a new ventilation system at Tripoli Prison, which operates under the jurisdiction of the Internal Security Force.
Additionally, it is working alongside detaining authorities to enhance health care services. This includes donating an X-ray machine to the medical center at Roumieh Prison and conducting disinfection procedures within cells at Tripoli Central Prison in 2014, aimed at preventing the transmission of scabies and other contagious diseases. On occasion, it provides detainees with essentials, such as clothing, hygiene items, mattresses and blankets.
In 2015, the ICRC allocated $1 million for the improvement of detainees’ living conditions. A portion of these funds was allocated to the renovation of district prisons. Since their agreement with the government in 2007, they have been conducting regular visits to various detention facilities across Lebanon. From 2014 to 2015, the ICRC conducted more than 200 visits to prisons as part of our commitment to monitor and improve conditions.
The Work of the Association of Justice and Mercy (AJEM)
Since 1998, the Association of Justice and Mercy (AJEM), a Lebanese nonprofit organization, has been actively engaging with all correctional facilities in Lebanon, delivering counseling services to inmates at various locations. This access has enabled them to execute both individual and collective interventions with the incarcerated population, as well as the ability to implement numerous programs and projects over the years.
In order to support prison health care, AJEM carries out HIV/AIDS prevention, treatment and care initiatives. This includes offering voluntary counseling and testing services in both central and regional Lebanese prisons, organizing Information Education and Communication (IEC) sessions within prison facilities for key populations to raise awareness about HIV and other communicable diseases and providing accessible support to individuals at risk in prisons.
The AJEM Rabieh Shelter
The AJEM Rabieh Shelter, founded in 2012 and operates today, is a traditional housing initiative that aims to provide prisoners with an array of extensive support services, empowering them to transition back into self-sustained living, secure employment and permanent housing. This, in turn, serves to mitigate the risk of prison overcrowding. The project guarantees a seamless reintegration into society.
These initiatives serve as a driving force for further transformations. Based on these assessments, it is imperative for the Lebanese government to formulate and execute both immediate and long-term strategies to address the conditions in prisons and ensure the protection of individuals’ rights.
– Susanna Andryan
Photo: Flickr
How a Skateboarding Nonprofit Is Empowering Morocco’s Youth
Why Skateboarding?
Sports have long been recognized as an important vehicle for physical health but the benefits are often far greater. Studies from the U.S. Department of Health have repeatedly shown how positive values inherent to sports — such as team building, confidence and commitment — have fostered immense growth in children.
In fact, UNICEF has recognized these studies and launched the Right to Play initiative — arguing that children, particularly those who have experienced trauma, deserve opportunities to play sports. By focusing on skateboarding, the CJF has created a sense of community, fostered a playful environment and helped children gain confidence.
New Developments in Morocco
The CJF built its skatepark in Morocco in 2022 after demonstrating success in Peru and Jamaica. The nonprofit built the Fiers et Forts skatepark on the grounds of a children’s home center currently housing more than 35 children. Although the park is on the grounds of the orphanage, the skatepark is open to the public. Children throughout the community are able to skate and attend their educational enrichment programs at no cost.
Eduskate Classes
The CJF has developed a variety of programs within the last year to offer to local youth and children of the orphanage. The programs include eduskate classes, educational enrichment offerings and designated disability sessions.
The eduskate classes are the primary concern of the nonprofit and their connection between skateboarding and positive values. These classes, for children aged 6–16, follow a specific structure and create an opportunity for children living at the orphanage to develop friendships with children in the broader community.
After a brief lesson/demonstration and free skate time, participants end the class with a reflection circle to share their accomplishments and reflect on their growth. Additionally, the classes often follow a specific theme such as a positive mentality, creativity, courage and other values based on personal growth and community. As teachers focus classes on these themes, they create an opportunity to connect these values with the sport.
Educational Enrichment Workshops
Educational enrichment opportunities are the second way children within the home and the broader community come together. Two days per week, children receive encouragement to attend workshops on various topics such as gardening, art and recycling in order to supplement their education and introduce the children to new subject matter.
While the educational enrichment workshops aim to supplement school, they play an important role in creating accessible educational opportunities to children who may not currently attend school. According to a UNICEF 2022 report, Morocco has a 28% secondary school completion rate.
The most recent development in CJF’s ongoing offerings is designated disability sessions at the skatepark. During these hours, the skatepark is closed to the general public while disabled children skate as a form of physical therapy. A 1:1 approach between teacher and student occurs to ensure participants have adequate support.
CJF’s Success in Helping Morocco’s Youth
In less than two years, the CJF has reported:
Access to these resources can change a kid’s life and play a crucial role in empowering Morocco’s youth. More than 40% of Morocco’s children fit within UNICEF’s description of “multidimensional poverty.” Symptoms of multidimensional poverty include a lack of consistent access to adequate housing and education.
Within a short period, CJF has spearheaded initiatives that could address these symptoms of multidimensional poverty and combined the programs with efforts to uplift spirits and support mental health. CJF continues to adjust its programs based on community feedback and claims it will continue to expand operations.
– Nikki Bayat
Photo: Flickr
5 Women-Focused Charities Operating in Somalia
1. Action for Women and Children Concern (AWCC)
Action for Women and Children Centre is a nonprofit non-governmental and non-political grassroots organization that works specifically for women and children. Its motive is to empower women by providing and aiding in receiving basic education, primary health care, water hygiene and sanitation and the promotion of human rights.
This NGO is active in Somalia and has been since February 2017. It is youth-serving and youth-led. Its main strategy is to advance women’s rights and leadership and build and support local communities by encouraging human rights, justice, safety and security.
Action for Women and Children Concern works across 100 countries with 80% of staff working within the communities they serve. It has been able to work directly and make a substantial difference within Somalia.
2. Somali Women’s Studies Centre (SWSC)
Somali Women’s Studies Centre is another non-governmental nonprofit organization that originated in Somalia in the year 2000. The organization follows the idea that through empowerment and assistance, women can get the support they need, which will in turn allow them to make positive alterations that will ultimately improve and strengthen their community.
SWDC works to better the lives and conditions that women live in. It does this by first focusing on vulnerable groups of women. The SWDC carries out this mission by heightening the capacity of women to lobby and advocate for concerned parties, and finally promoting reconciliation and peace building.
3. CARE
CARE is a charity that was established in Canada in 1946, but it was in the mid-1970s that the organization began to work on an international scale. The work in Somalia began in 1981. Its programs have covered water and sanitation, civil society and media development, primary school education, teacher training, adult literacy and vocational training, and much more.
CARE also works specifically for women. On its website, it describes its mission as aiming to reduce the impact of emergencies on vulnerable communities, especially women and children. In 2022, CARE was able to reach 2,214,383 directly and 2,811,318 with 53% of the number being women and young girls.
4. Somali Women’s Development Centre (SWDC)
Somali Women’s Development Centre is an NGO that began in 2011. It aims to uplift and motivate Somali women to support Somali women in advocating for their rights. SWSC also does a lot of research and documents the problems that Somali women and girls face daily.
The SWSC are based in Somalia, but they also have offices in Nairobi Kenya for the Somali women that live there.
5. Women’s Peace and Humanitarian Fund (WPHF)
The Women’s Peace and Humanitarian Fund first came to work in Somalia during the 2012 presidential election. Their primary focus is women. The WPHF recognizes that women in Somalia have always suffered disproportionality at the hands of Clan fights and extremist groups. With child-bride marriages and female genital mutilation, FGM women have had an unfair beginning to adult life.
These women-focused charities operating in Somalia are doing substantial work to support and provide for the women that they cater to. The work that is done is reaching women and girls and is allowing them a new chance and opportunity to grow.
– Sumaya Ali
Photo: Flickr
Tigray: Two Years Under A De Facto Blockade
By the start of 2020, the national elections that Ahmed promised experienced indefinite delay. In June, his term as prime minister received an extension without an election, causing backlash from the TPLF for their failure to uphold democracy. Ahmed attacked those suggesting a transitional government should take power. At the same time, elections were delayed due to COVID-19, threatening, “we will be forced to take action against those who attempt to hold fake elections.” Despite this warning, regional elections took place in Tigray in September 2020, where more than 2.7 million Tigrayans voted for the TPLF to represent them as their regional government.
In November 2020, the TPLF forces launched an assault on a federal military base in Tigray, describing it as a preemptive move against federal forces that were reportedly gearing up to attack from a nearby region. Within hours, Ahmed ordered a military operation against the TPLF, tainting his previous association with peace and igniting the civil war.
Humanitarian Crisis
Since the civil war began at the end of 2020, 90% of Tigrayans are in need of aid. Over the last two years, Tigray has been under a de facto blockade as the Ethiopian Government has cut electricity, fuel and telecommunication to the region, even restricting humanitarian assistance. Within only a few months, by Jan 2021, the EU High Representative criticized Ethiopia as they received “consistent reports of ethnic-targeted violence, killings, massive looting, rapes, forceful returns of refugees and possible war crimes.”
Despite international pressure from the EU and the U.S. Secretary of State, who also accused the government of ethnic cleansing, Ahmed declared total war on the TPLF on July 18, 2021. The conflict, and specifically being under a de facto blockade, continues to deeply impact the lives of Tigrayans as they struggle to operate with no electricity, banks, hospitals, medicine, vaccinations and insecure supplies of food or water. According to the WHO’s Incident Management System and Emergencies Operation team leader Ilham Abdelhai Nour, 89% of Tigrayans are food insecure and almost 30% of those under five years old are acutely malnourished. Not only do these malnourished children need urgent and almost constant care, but diseases such as malaria, measles and acute respiratory tract infections are also on the rise, all while only 3% of health facilities in Tigray are fully functioning.
The Effects on Health Care Services
As a result, maternal health services have completely collapsed, causing high maternal mortality rates across Tigray as 55% of pregnant and breastfeeding women are severely malnourished and incapable of eating for one, let alone two. Meanwhile, vaccination programs and access to preventative medicine for diseases such as HIV, diabetes and malaria have been stalled, increasing the risk of disease and death.
Unfortunately, there have been reports of all sides committing war crimes, as the TPLF, Ethiopian National Defense Force (ENDF) and Eritrean Defense Force (EDF) have engaged in sexual violence against women as they participate in gang rapes. The EDF’s crimes have been marked with extreme brutality as they target Tigrayan women, using them as sex slaves.
Humanitarian Response
The International community has stood by Tigray as they condemn ethnic cleansing and the war crimes committed against civilians. In September 2021, the United States imposed economic sanctions on Ethiopia and Eritrea before providing $313 million in humanitarian assistance in April 2022. This funding helps to deliver emergency food and nutrition for almost 7 million people while rebuilding local health facilities and mobile health teams to combat disease and deliver aid to remote regions. Child protection and psychosocial services for survivors of gender-based violence and those suffering from trauma have also been provided by the U.S.
Furthermore, in February 2022, the Pan-African Lawyer Union and Legal Action Worldwide filed a complaint to the African Commission on Human and People’s Rights against Ethiopia for mass human rights violations against Tigrayan civilians. They argue Ethiopia is in violation of multiple human rights under the African Charter as they participate in military targeting of civilians and civilian structures, mass murders, sexual violence against women and enforced information blackouts.
The World Health Organization’s (WHO) Efforts
The World Health Organization (WHO) and its 23 partners are also on the ground, supplying emergency medical support whenever possible while attempting to strengthen prevention and preparation as disease outbreaks continue to rise. Being under a de facto blockade limits humanitarian access into Tigray. Between January and September 2022, WHO and its partners assisted 3 million people with health care services. Finally, the EU Commission dedicated €4 million to support displaced Ethiopians, as by the end of November 2020, 29,000 Ethiopian refugees had already fled to Sudan.
It is imperative that the international community continues to support the people of Tigray who are struggling to survive under a de facto blockade by demanding an end to the de facto blockade and providing aid whenever possible.
– Alice Isola
Photo: Flickr
The Work of Advocates for International Development
A4ID supports the Sustainable Development Goals (SDG) that were agreed by 193 countries at the United Nations General Assembly in September 2015. The 17 SDGs include no poverty, zero hunger, quality education and gender equality for all.
Land Rights in Uganda
A case study that demonstrates the aid that Advocates for International Development provides is called “The Right to Land and Livelihood in Uganda” (October 2016). The United Nations’ Food and Agriculture Organization states that “rural landlessness is often the best predictor of poverty and hunger,” which the fact that 75% of those living on less than $1 a day live in rural areas reflects. By ensuring equal access to land, they can provide livelihoods and economic security and therefore help reduce poverty.
The Ugandan government has tried to help by issuing more than 25,000 certificates of ownership (CCOs) providing customary landholders evidence of their tenure and land ownership and in 2013 committed to recognizing tenure rights of minorities in ancestral lands. The government’s aim was to reduce land conflicts and improve the financial security of families living in rural Uganda. However, the local conflicts within these rural communities, with issues such as the theft of live cattle, have made it difficult to continue to protect land rights.
Training and Education
A4ID aided Sugur Development Agency (SDA) by facilitating legal assistance from Lawyer Clifford Chance to alleviate the conflicted land rights in the Teso Sub-region of Uganda. Chance analyzed the relevant local and international law on land rights. The SDA used this research in its advocacy, communications material and training to inform the local community about their land rights. This will help protect their livelihoods and economic security and alleviate the poverty in the Teso Sub-region of Uganda.
Clifford Chance was able to support a local community in Uganda due to the training and education A4ID provides, which can then help inform and uplift those in poverty. By providing local communities with the tools to support themselves and defend their rights, they help break the cycle of poverty. This case study also demonstrates the connection between human, civil and political rights. If the government ensures equitable access to land, it supports the economic growth of the community and ensures equal rights.
Looking Ahead
Advocates for International Development is a pro bono, nonprofit organization. Its mission is simply to provide a voice for the world’s poorest citizens. With a network of more than 50,000 legal experts and having provided more than £30 million worth of free legal advice for more than 700 development organizations, A4ID plays a critical role in helping the global fight against poverty.
– Anjini Snape
Photo: Flickr
Start-Ups with a Social Impact
However, beyond pets, drones and gaming, what if startups could go further and support marginalized communities? What if they could directly combat poverty and its adverse effects on society? There is ample opportunity for startups with social impact.
Significance of Startups
Before diving into this topic, it’s essential to understand the significance of startups and how they function. Startups are entrepreneurial ventures primarily focused on bringing a product or service to the market. The ventures often lack a fully developed business model or adequate capital to proceed to the next stage. Typically, startups are funded by their founders and later investors.
The growth of startups relies on public interest, trust and support for the product or service. The importance of startups lies in filling gaps in the business landscape by identifying unmet needs or underserved markets. Startups with the potential to disrupt the status quo are created by transformational entrepreneurs who aim to establish vibrant companies, generate employment and offer new goods or services to previously neglected markets.
Identifying unmet needs and targeting underserved demographics naturally lends itself to providing a product or service for those in need, including the working poor, people living in poverty and marginalized communities. This identification creates space for startups with social impact.
Opportunity in Underserved Communities
Marginalized communities can be found in various settings across countries, industries and communities. Some examples of underserved communities include:
Low-income individuals depend heavily on public transportation, especially in cities where car ownership is expensive and impractical for many. Relying on public transportation can be unreliable and complicated, affecting workers, commuters, school children and more.
Rural laborers in developing economies, who mainly operate in the informal economy, lack access to essential protections like maternity leave, trade unions and compliance with labor laws. Work deficits are prevalent in rural areas, leading to employment challenges and insufficient social protection, resulting in the exploitation of low-income workers, child laborers, pregnant women and mothers and migrants.
Workers face gender disparity in job opportunities and wages, especially in developing countries. With approximately 2.4 billion women facing unequal economic opportunities, many countries still do not guarantee equal pay for equal work. Women face job restrictions in various forms, including formal training, job opportunities, representation in specific industries, compensation and proper health and maternity benefits. Specifically, women in Latin America and the Caribbean have less than three-quarters of the legal rights in the workplace than men.
Individuals lack financial literacy and participation, specifically in developing economies. Financial literacy plays a crucial role in poverty reduction. People struggle to make informed financial decisions without a basic understanding of financial concepts. Financial ignorance results in higher transaction fees, larger debts and higher interest rates on loans. It also prevents individuals from investing, saving for retirement and making the most of their money. For marginalized individuals with limited resources, this lack of financial literacy exacerbates the challenges they face, making it difficult to meet basic living needs on top of low and unstable incomes.
Venturing Beyond the Norm
To address the needs of marginalized communities and underserved markets, several startups with social impact have emerged as pillars of change. The startups below are taking proactive steps to combat poverty and provide equitable opportunities to the very issues previously examined.
Treepz
Treepz is a TransitTech solution modernizing public transit in Nigeria and expanding throughout Uganda, Ghana and other African countries. Treepz makes transportation more equitable and reliable and improves accessibility for underserved communities. In Nigeria’s largest city, Lagos, Treepz is building strong communities, addressing transit deserts and enhancing the quality of life. Treepz CEO is quoted saying, “We wanted to give people a better way to commute with predictability, where they can know when the bus will get here, the certainty that they will have a seat on the vehicle, that it’s a decent vehicle and a safe one.”
Karya
By providing ethical digital work opportunities to rural Indians and sharing profits with the workers, Karya seeks to lift rural communities in India out of poverty while emphasizing fairness and equitable compensation. India has 230 million people living in poverty, with no clear path out. Karya has now provided more than 30,000 rural workers in India with fair compensation for data collection.
Laboratoria
An initiative empowering women to pursue careers in technology and bridging the gender gap in the Latin American tech industry, ensuring that more women have access to opportunities in this sector. Laboratoria was started in Peru, as women comprise less than 10% of the technology industry. Laboratoria has helped more than 3,300 women in Brazil, Chile, Colombia, Mexico and Peru; about 85% of those have landed jobs in the past two years.
Pluang
An app designed to help Indonesians diversify their investments and increase financial literacy, providing first-time investors access to financial education and asset class diversification. Indonesians scored only 38% in the latest financial literacy assessment, and less than half have formal savings accounts. Now, Pluang has more than 3.5 million users and is working to remedy these financial limitations.
Championing Change
These startups address marginalized communities and play a vital role in combating poverty and offering equitable opportunities for all. As noted, these startups would not be as successful without widespread need, public interest and support. Dedication to positive social impact is becoming increasingly important. Founders and investors are backing up words with actions by creating and supporting these conscious business ventures and startups with social impact. While there are various needs that startups can fill, from pet products and gaming to affordable nutrition and increasing financial literacy, it’s exciting to see transformational entrepreneurs making efforts toward social good.
–Kailey Schwinghammer
Photo: Flickr
Digital Wages in Bangladesh are Empowering its Female Workforce
The Situation
At the same time, historic gender roles mean women often do not directly benefit from the results of their work. In Bangladesh, where female textile factories dominate, women are expected to turn their wages over to their husbands or fathers. There are even accounts of long lines of men waiting outside the factories on payday, ready for this handover.
This wage settlement means female workers are denied proper control over their finances. For those women already living in poverty, this leaves them trapped. Despite undertaking paid employment, they cannot access the financial resources required to escape their current position. While this is a complex problem, some simple solutions can go a long way to removing the barriers women face. BSR’s HERProject has looked to do exactly that. HERProject has supported the growing trend of introducing digital wages for factory workers in Bangladesh. It helps teach employees how to use digital banking systems to ensure successful implementation.
The Benefits of Digital Wages in Bangladesh
Digital wages in Bangladesh have transformed women’s lives in the key areas where they were previously disempowered. Now, it is easier for workers to plan and save. They only withdraw the money they need to spend, while the rest is stored securely in a bank account.
World Bank researchers found that digital banking increases the likelihood of workers saving money by 25%. At the same time, women have more control over their money. Instead of receiving pay in person, their wages are transferred directly to an account that belongs to them. This prevents husbands or fathers immediately confiscating women’s wages.
One can see these benefits in the popularity of digital wages in Bangladesh. According to the Bill and Melinda Gates Foundation, pollsters found that after an H&M factory adopted digital wages, the number of workers who preferred the system jumped from 4% to 81%. A crucial part of the message of HERProject is the benefits factories themselves will stand to make from schemes such as digital wages. According to the organization, empowered women become agents of change, making businesses “more ethical and more productive.”
The Formation of RISE
On International Women’s Day 2023, HERProject joined Gap Inc. PACE, CARE International and Better Work (all organizations fighting for gender equality in supply chains) to form RISE. This new organization, standing for ‘Reimagining Industry to Support Equality,’ will look to fight for gender equality on an even larger scale. Its founders already support more than five million workers in over 20 countries. By sharing their resources, they can bring transformative ideas like HERProject’s digital wages to more of the developing world. The success of digital wages in Bangladesh is one example of how technology can be applied in the developing world to give workers greater control over their finances and the means to escape poverty. Its continued application will help reshape industries across developing countries for decades.
– Jack Arrowsmith
Photo: Wikipedia Commons
How Tobacco Production Impacts Food Security
How Tobacco Production Affects Farmers
Unfortunately, tobacco not only causes death and diseases to those who are smokers or breathe secondhand smoke. Dr. Ruediger Krech, Director of Health Promotion at WHO, points out that tobacco production causes illnesses to farmers, as they are “exposed to chemical pesticides, tobacco smoke and as much nicotine as found in 50 cigarettes.” Furthermore, it is estimated that more than 1 million children work in tobacco farms, being deprived of education.
The countries with more need to produce food are paradoxically those that produce the most tobacco. Nine of the 10 nations with the highest tobacco cultivation rates are low- and middle-income nations, according to WHO.
How Tobacco Production Impacts Food Security
Also, because tobacco production takes up fertile land, it exacerbates the food security issues in these countries. As a result of the crop’s growth-induced deforestation, water source contamination and soil deterioration, the environment and the populations that depend on it also suffer.
A record 349 million people experience extreme food insecurity across 79 countries. Many of them are in more than 30 African nations where tobacco growing has expanded by 15% over the past 10 years, according to the agency’s new report “Grow food, not tobacco.”
Transitioning Tobacco Farming to Food Crops
More than 124 countries cultivate tobacco, occupying 3.2 million hectares of arable land that farmers could use for food production. In order to shift this situation, WHO, the Food and Agriculture Organization (FAO) and the World Food Programme (WFP) have partnered to back the Tobacco Free Farms initiative. Through this plan, more than 5,000 farmers in Kenya and Zambia will receive assistance in switching from tobacco to sustainable food crops.
There are other examples of countries that have found a new way to end global hunger by switching from tobacco farming to food crops. In Bulgaria, despite European Union subsidies for tobacco production, many farmers have effectively transitioned to cultivating nuts, berries or engaging in animal husbandry. This shift has marginalized the role of tobacco in Bulgarian agriculture, leading to significant economic growth and improved living standards in major villages within established tobacco regions.
Similarly, Indonesia has seen success in transitioning tobacco farmers to alternative crops like cashews, sweet potatoes, corn and green vegetables, resulting in increased profits.
Progress in China and Malaysia
In regions like China’s Yunnan province, there has been a notable reduction in tobacco cultivation since 2012. Thousands of farmers have embraced the shift toward growing vegetables and fruits, experiencing higher net incomes due to initiatives promoting tobacco crop substitution.
Malaysia’s government has supported tobacco farmers in transitioning to cultivating kenaf, a plant used for high-quality paper, biocomposites and bioplastics. This transition has shown promising returns on investment with minimal expenditure of time, money and labor.
Transition to Food Crops in New Zealand and Sri Lanka
Similarly, in New Zealand’s Motueka region, government incentives for tobacco farming have been removed, allowing farmers to successfully transition to cultivating hops, kiwis and apples. These examples illustrate that viable alternatives to tobacco farming are not only possible but are already underway in various regions around the world.
In 2021, the National Authority on Tobacco and Alcohol in Sri Lanka launched a pilot project in the Anuradhapura and Monaragala districts aimed at encouraging the cultivation of alternative crops instead of tobacco. This initiative yielded significant results, with a remarkable 91% reduction in tobacco cultivation observed in Anuradhapura and a 57% reduction in Monaragala.
In Anuradhapura, 30% of farmers transitioned to cultivating vegetables while 16% turned to paddy cultivation. Conversely, in Monaragala, the majority of farmers opted to grow crops like peanuts, sesame and cowpeas. The success of this pilot project underscores the potential of sustainable agricultural practices in fostering economically viable alternatives to tobacco farming and addressing how tobacco production impacts food security.
Looking Ahead
It is important and at the same time gratifying that in the face of a situation such as that presented by tobacco cultivation and its negative influences on farmers and consumers alternatives are established throughout the world. These not only imply tobacco’s progressive disappearance but also reverse the situation, finding a new way to end global hunger by making the means and efforts to serve food production and helping those most in need.
– Christian Teruel
Photo: Flickr
Vocational Education Training Centers in Brazil
For years, Brazil has grappled with grievances about unfair wealth distribution. In 2021, according to World Bank statistics, Brazil’s poverty rate and Gini coefficient were 5.8% and a staggering 53.4, respectively, indicating a high level of disparity and that 12.5 million of the population were still under the international poverty line. The UN says one in four youth are unemployed. There is no silver bullet for the issue, but now vocational education training centers in Brazil offer an opportunity to change this narrative.
Bridging the Skill Gap
Brazil is now struggling with a significant skills gap. Companies, especially those in the technical and specialist industries, struggle to find employees with the right skills. A survey of employers by Fortune 500 corporation Manpower Group has revealed candidates in technology, logistics and marketing are now much sought after by the industries, while other estimates put vacant IT positions in the South American country at up to 400,000.
That is when vocational education training centers step in. By offering accredited and tailored courses, they help upskill Brazil’s next generation and, in a labor force that barely more than 10% receive tertiary education, provide an alternative for many.
Localized Solutions
Perhaps what sets vocational education centers in Brazil apart from other countries is their increasingly localized approach. Understanding the unique challenges of each community, government-operated institutes and corporate training programs are crafting courses that cater to local industries. In a report, the Organisation for Economic Cooperation and Development (OECD) said: “Ideally, national/regional prerogatives are combined with local freedom whereby schools can often adapt the content to the local labor markets.”
SENAI, a network of secondary-level professional schools maintained by the Brazilian Confederation of Industry, has designed the Industry Work Map for its regional bodies to decide what vocational education training programs should be offered. Specific and targeted education helps ensure students have higher chances of employment upon graduation, directly alleviating poverty within a community. However, scholars have suggested there needs to be increased communication between vocational education training centers and employers to help identify market trends in demand for skills.
Empowering Women and Marginalized Groups
A spiral of racism, poverty and exploitation has historically left women and marginalized communities facing barriers to accessing quality education and employment. Vocational education training centers are arguably the key to change.
According to the Brazilian Institute of Geography and Statistics (IBGE), women earn on average 22% less than men. OECD has found women are more likely than men to pursue a vocational track in Brazil and are overrepresented in upper secondary education, contrary to the case in most member countries of the organization. The Thousand Women Program, which started by providing 1,000 disadvantaged women in the country’s north access to vocational education, was successful and expanded in 2009. Estimates have indicated that 100,000 women have benefited from the program by 2014.
With vocational training education centers actively encouraging female enrolment and offering courses in sectors traditionally dominated by men, Brazil is tackling poverty for all.
Supporting Entrepreneurial Endeavors
Not all graduates of vocational education training centers seek traditional employment. Recognizing the potential of Brazil’s entrepreneurial spirit, many centers offer courses in business management, financial literacy and start-up development. These skills are crucial in a country where small businesses contribute to over 27% of the GDP, according to the Brazilian Service of Support for Micro and Small Enterprises (SEBRAE). Through entrepreneurship, these centers are not only creating employment opportunities for graduates but also helping stimulate local economies, fostering innovation and driving forward Brazil’s global economic position.
Fostering a Culture of Lifelong Learning
Perhaps one of the most significant impacts of the vocational education initiative is the cultural shift toward valuing education. As more success stories emerge, there is a growing realization that education is a sustainable way out of poverty. This change in mindset is critical. With a focus on continuous learning, Brazilians are better equipped to adapt to the ever-evolving job market, ensuring long-term economic stability for themselves and their communities.
The Future
As Brazil advances towards what many hope will be a more equitable and prosperous future, the role of vocational education training centers cannot be understated. These institutions, with their pragmatic approach to education and employment, are not only addressing immediate economic concerns but also cementing the country’s resilience and tenacity in the long run.
Brazilian educator and philosopher Paulo Freire once said: “Education does not transform the world. Education changes people. People change the world.” By promoting vocational education, Brazil will stand as a living testament to this ethos, reflecting the power of focused, skill-based training to help the impoverished break glass ceilings — and, ultimately, to succeed.
– Reagan Yip
Photo: Flickr