Information and news about business

Transnational CompaniesA transnational company is a global company that has factories and offices in different countries around the world. The headquarters are usually in advanced countries and its factories and manufacturing facilities are in less developed countries. Most of the transnational companies have home headquarters in Western Europe, Japan or the United States. Suppliers can be anywhere in the world depending on the necessary goods. However, companies usually set up their manufacturing centers in places where labor is cheap to keep operating costs low.

The operation of transnational companies in less developed countries where rates of poverty are high can be helpful in aiding people to break out of the cycle of poverty, but the risks of exploitation and low wages are still present.

Advantages

  • Creating jobs for the local population – Undoubtedly, transnational companies create jobs for the local population; they account for at least one-fifth of total paid employment in manufacturing in a number of developing countries. The creation of more and more jobs not only boosts the economy of the country but also provides local workers with a stable income, albeit that pay is low. Furthermore, these jobs help in improving the skills of its employees, which can then be transferred to future jobs and taught to others in their communities.
  • Economic growth for the country – Transnational companies bring much-needed money into a developing nation. Although most of the profits do return to the company’s country’s headquarters of origin, the local economy does benefit. By boosting business activities in the country, transnational companies contribute to economic growth and development. They could also act as growth poles for other similar companies by encouraging them to locate to that country, thus bringing in even more economic support.
  • Developing infrastructure and technology – Developing countries do not have sufficient resources needed to boost research and development, leaving them technologically behind. Transnational companies however bring in technology and knowledge that the host country does not possess, consequently furthering their development. They are a source of inventions and innovations. Also, infrastructure in the ways of transport links, airports and services are also developed as a result of transnational companies.

Disadvantages

  • The exploitation of workers – Even though transnational companies do provide employment opportunities, they also can exploit the employees. The minimum wage rate for the workers is very low when compared to the work that they complete and the long hours spent, commonly with little or no breaks. The income that workers receive may be stable, but it is not enough to survive on, let alone enough to live a decent quality of life. In a desire for cheap labor, working conditions may also be poor and sick leave that workers are entitled to may be refused.
  • Environmental damage – Transnational companies often receive critics for their harm to the environment. The use of cheaper, non-renewable resources limits sustainability and the burning of materials such as plastic and rubber pollutes the environment. Developing countries need environmental sustainability since for many their health and livelihoods greatly rely on the natural environment and the risks of air and water pollution further diminish their development.

H&M in Ethiopia

One example of transnational companies operating in a less developed country are the textiles and fashion companies such as H&M, Guess and others in Ethiopia. They create job opportunities for local people and particularly for women. However, as mentioned above, the risks of exploitation are prevalent. Garment workers in Ethiopia are among the lowest paid, with a 2019 study from the Center for Business and Human Rights reporting that they have an extremely low pay of just $26 a month. This does not cover basic needs thus not enabling the workers to live a decent quality of life.

There are several NGOs who work towards tackling exploitation in the garment industry; one such example is CARE International, one of the biggest defenders of workers’ rights in all areas, including the fashion industry. It currently has work going on in 95 countries around the world, reaching 56 million people directly via approximately 1,000 projects and indirectly working towards 340 million lives globally.

The Overall Impact on Poverty

So, transnational companies do provide jobs and boost a country’s overall development, but at what cost? There are other ways to help local workers in improvising their livelihoods without the risk of exploitation and capitalist benefits. One such example of this is Farm Africa, a more sustainable and locally oriented initiative. Farm Africa is a charity that helps to reduce poverty by helping local people in eastern Africa to earn more from their produce. Working in DR Congo, Ethiopia, Kenya, Tanzania and Uganda, Farm Africa works to boost the economic welfare of the people, whilst also ensuring environmental sustainability, thus protecting their environment for generations to come.

For a transnational company to be effective, it would need to involve the local people, not just use them for cheap labor to boost its own profits. It is imperative for an initiative to tackle poverty to be sustainable not only environmentally, but also socially and economically.

– Ruby Wallace
Photo: Flickr

Honey Pride Arua
Honey Pride Arua, a private organization started in 2015 by Sam Aderubo offered an innovative approach to inclusive economic development across the region of Arua, Uganda. Specializing in honey, the organization aims to construct sustainable markets for beekeeping and production, alongside raising awareness amongst local farmers of the commercial potentials of beekeeping.

A comprehensive program offers education on all aspects of beekeeping and the honey production process, from apiary management to the packaging and distribution of goods. Through this, the organization enables existing local farmers and anyone with a desire or interest to enter into beekeeping to convert their hobbies into economic output, sustaining themselves and their families.

The Effects

As Betty Ayikoru, a local beekeeper and councilor outlined beekeeping benefits communities in more ways than selling honey. Honey Pride Arua has grown commercially in the scale of operations and income, but what is more significant is the effect this has on the surrounding community and stakeholders.

Today working with more than 1,700 farmers – 30% women and 60% youth, the organization makes emphasis on targeting marginalized members of the community. A holistic and immensely effective approach in addressing local unemployment by gearing their project to those in the community most likely to be unemployed, or equipped on average with lower prospects.

Honey Pride is also noted for the inclusion and support of refugees in economic activity for local development. Arua, in Northern Uganda, is a region largely populated with refugees compared to other parts of the country. Honey Prides’ inclusivity played a key role in gaining external funding from the United Nations Capital Development Fund (UNCDF).

Stable markets offer stable incomes and Honey Pride’s activity has helped local farmers put children through school, financially sustain households and their families, as well as offering a nutritious element to their diet, according to a U.N. News podcast.

Previously it was difficult to find a reliable market with stable prices to sell one’s honey in Arua. However, prospects for beekeepers have drastically changed since Honey Pride entered the industry. Delivering on one of its central tenets, a stable honey market has emerged across the region. A kilogram of honey in 2015 was worth 3,500 Ugandan Shillings, today the market price is around 7,000 Shillings per kilogram. Encouraging statistics motivates many young members of the community to venture into beekeeping.

Another noteworthy aspect of Honey Pride’s operations is the efficiency of its practices. The organization works to eliminate waste by offering excess produce and residue to the community to fertilize local gardens and land, as well as feed livestock, according to a U.N. News podcast.

Investment

The most significant challenge to the organization has been financial. As Sam Aderubo himself states in the podcast, “finance is the lifeline of a business.” The organization in its early years, like most small Ugandan businesses, was unable to get investment from commercial banks. Aware of its social impacts and inclusivity practices focused on a community-benefit model, the UNCDF found a worthy beneficiary, investing over $117,000 to help Honey Pride Arua reach a certain threshold at which it will begin to attract investment from larger commercial banks and private equity firms.

This came in the form of loans for processing equipment and operations, alongside technical assistance and support in designing a sustainable and viable business model. Through these efforts, Honey Pride procured the likes of professional filtering equipment, an electric honey press for the extraction process and eight honey settling tanks each with a capacity of 1,000kg, UNCDF reported.

A direct impact of such measures saw a substantial increase in output from three to five tonnes per month post-investment, which, according to UNCDF, in 2021 amounted to a monthly increase in income by over $8,000.

Following the successful implementation of these loans in growing the organization, in the case of Honey Pride, several private equity firms have since displayed an interest in investing, offering a blueprint for further upscaling and aligning the company for greater success in the future, according to the U.N. News podcast.

What the Future Holds

Further expansion and entry into new markets is the next step for Honey Pride, having met international standards with its product. With increases in output and income, Honey Pride can begin to invest more in outreach and marketing, further consolidating the stability of local markets in addition to developing foreign ones as well.

Looking ahead, Honey Pride Arua aims to implement a program to equip local farmers or those with a desire to venture into beekeeping with the required equipment and facilities. This way, it is helping to establish more local beekeeping businesses that return on the investment they received from Honey Pride through their yield. An innovative, circular model of business. As Honey Pride grows commercially, its inclusive practices and reach spread, benefiting ever greater numbers of people.

– Bojan Ivancic
Photo: Unsplash

Expo 2020 Dubai
Expo 2020 Dubai is a gathering of 192 countries each presenting and offering an opportunity to experience their culture, food and innovations. It is the latest of a World Expo tradition that began in London in 1851 as the Great Exhibition of the Works of Industry of All Nations. Expo 2020 is taking place from October 1, 2021, to March 31, 2022, showcasing and promoting different solutions and opportunities that may improve the lives of people around the world. Projects aim to accomplish this by “promoting alternative employment and income opportunities, women in the workplace, competitive products and services and improved market access.”

Overview

Expo 2020 Dubai is the latest of the world’s fairs with the official theme of “Connecting Minds, Creating the Future” plus different sub-theming of sustainability, mobility and opportunity. The Expo 2020 is taking place in the Middle East for the first time. Until construction began at the site of the expo, the Expo occurred in an area of empty desert. The layout of the Expo is a vast 1,000-acre site comprising different zones in the shape of petals focusing on the sub-themes of sustainability, mobility and opportunity.

Due to the COVID-19 restrictions in place, individuals must comply with strict precautions, including mask and vaccination requirements and occupancy limitations on the number of people present at the Expo. One of the other crucial aspects of the Expo 2020 Dubai is that there is a record 191 countries participating and each nation has its own area or pavilion. The Expo is partnering with the United Nations, which has its own pavilion that focuses on its future goals, including sustainability. Once the expo ends at the close of March 2022, “around 80% of the built Expo will transition into residential, business and commercial developments.”

Expo 2020 Dubai Addresses Global Poverty

At the Kenya pavilion, some innovators show their solutions to the country’s problems of “unemployment, poverty and food shortages” through “home farming” using basic hydroponic systems. Dr. Peter Chege Gichuku established Hydroponics Africa Limited in Kenya in 2015 with the purpose and goals of eliminating “the root cause of poverty and food insecurity.” The company is hoping to “provide cost-effective sustainable farming methods without the use of soil and an 80% reduction in water.”

WaterAid provides an example of social development commitments. In Nepal, WaterAid promotes good hygiene practices by using Nepal’s routine immunization program as a “point of contact” to reach mothers and children. The Nepal Ministry of Health and Population leads the initiative with the “financial and technical support” of WaterAid. The project has a dual purpose of “[strengthening] Nepal’s routine immunization system by improving immunization coverage and people’s trust in immunization services” while simultaneously improving hygiene practices to prevent diseases stemming from poor hygiene practices.

Looking Ahead

Many more organizations are participating in Expo 2020 Dubai. They are promoting their solutions and putting forward ideas to address issues of global poverty. The Expo presents an ideal opportunity to present these new innovations to governments of all nations and their citizens. Global events such as Expo 2020 Dubai unite nations across the world with the understanding that global collaboration is necessary to address concerns of a global scale.

– Julian Smith
Photo: Flickr

Ghana Tech Lab
The Ghana Tech Lab, a collaborative tech-centric company, has now connected 7,000 youths with digital and technical education as part of its Ghana Startup Ecosystem program. The goal is to build the next generation of tech entrepreneurs in Africa.

About the Ghana Tech Lab

The Ghana Tech lab is a company building a launch platform for young tech talent in Ghana. Headquartered in Accra, the lab takes a multi-stage approach to launch startups. First, trainees complete a three-month intensive training program to develop technical and digital skills. The top talents from this program then move to the incubation program, where trainees build a business model and receive mentorship.

Finally, the company connects the new startups with seed funding through grants and a network of venture capitalists. By supporting entrepreneurs, the company hopes to fight poverty through innovation, economic development and job creation. Since its founding in 2018, the base program alone has trained 3,933 Ghanaians and incubated 68 startups.

Once a founder begins a startup, it joins the Ghana Startup Ecosystem, a program and database run by The Ghana Tech Lab. Its goal is to act as a central hub for tracking and supporting Ghanian startup ventures. The Ecosystem tracks human capital, market and financial data across Ghana. The database serves to contextualize ventures and produce market trends to substantiate ventures. This system legitimizes startups and encourages global investment.  

In fact, 50% of the startups within the system secure funding. The adjunct of the Startup Ecosystem has led to the launch and funding of 100 startups in Ghana, according to AllAfrica. Data-driven innovation has become a central tenant of the Ghana Tech Lab, as a way to promote long-term success. Rather than focus on the symptoms of poverty in Ghana, the company hopes to use economic revitalization as a way to target poverty at the source.

About the State of Poverty in Ghana

In order to understand why tech plays a role in poverty reduction, it is important to contextualize poverty in Ghana. As of 2021, Ghana has a poverty rate of 11.3%. It means that 3.57 million people live on or under $1.90 a day. The country experienced a decrease in poverty from 52.6% to 21.4% between 1991 and 2012. However, the rate of decline has become stagnant over recent years. At the same time, economic development has steadily improved over the last decade. The combination of economic growth and poverty maintenance has led to an increasing rate of economic inequality.

Because of these conditions, the World Bank in Ghana has determined that developing human capital, growing the job market and improving economic resiliency are the best strategies for decreasing poverty and economic inequality. The Ghana Tech Lab has created a business model that targets all three strategies.

The Way Building Tech Startups Fights Poverty

By directly increasing access to education and skill development, the Ghana Tech Lab removes barriers of entry for skilled work. Sourcing funding for startups benefits job production and improves long-term job security. The innovations that startups spur on also improve economic resilience. Often, the startups that come out of the Ghana Tech Lab target poverty directly. For example, Farminista Africa is a woman-led company that helps smallscale female farmers grow their businesses. By 2030, the Ghana Tech Lab expects to produce 30 million new jobs through technical education and economic development, according to AllAfrica.

By increasing accessibility to digital skills, the Ghana Tech Lab is building a new path forward. The company shows that poverty reduction is a natural byproduct of community empowerment.

– Aiden Smith
Photo: Unsplash

Coffee Economics: How Your Cup of Starbucks is Fighting Global PovertyStarbucks is fighting global poverty. Their website boasts that they are “making coffee the world’s first sustainable product to improve the lives of at least 1 million people in coffee communities around the world”. How does this pertain to global poverty? It is simple – of the world’s poorest countries, many are also the top producers of coffee. Brazil, Vietnam, Colombia, Indonesia, and Ethiopia are the top 5 producers of coffee in the world. These 5 countries additionally experience some of the highest poverty rates in the world. Starbucks has undertaken the mission of giving back to those who laid the groundwork for what has made their business so successful for 50 years, the coffee farmers.

Global Farmer Fund

With the goal of turning coffee into a sustainable product, in 2008, Starbucks founded the Global Farmer Fund Program. Starbucks founded this program to aid coffee farmers in developing countries. Before the launch of the program, Starbucks actually provided its first loan to a farming project in Mexico in the year 2000. This first loan allowed Starbucks to see the effect that such a program could have for farmers in need in developing countries. At the inception of the program, Starbucks pledged to provide $20 million to coffee farmers in need. In 2015, Starbucks committed to providing an additional $30 million, raising the Global Farmer Fund to a $50 million-valued program. According to Starbucks, “By providing access to capital, farmers have the ability to make strategic investments in their infrastructure, offering the stability they need to manage ongoing complexities so that there is a future for them and the industry”.

Fairtrade International

In order to meet their sustainability goals, Starbucks also partnered with Fairtrade International. Fairtrade International’s website boasts, “We transfer wealth back to farmers and workers in developing countries who deserve a decent income and decent work. We are the leading independent global movement for trade justice, and we are still the most recognized and trusted sustainable trading standard in many leading markets.” Fairtrade International makes sure that coffee farmers are getting paid fairly for their work, and in return, farmers adhere to environmental and labor standards set by the organization.

Fighting Poverty

The production of coffee plays a major role in the global economy, particularly in regions that are home to many living below the poverty line. Sustainable coffee production allows for an ethical and lasting source of income that has the potential to not only lift many out of poverty but keep them above the poverty line for generations to come. With Starbucks supporting fair trade agreements, they are protecting the integrity of their company at the root, while also improving the lives of coffee farmers in developing countries. Support for companies that implement programs, such as the Global Farmers Fund, and acknowledgment of the impact they are making shows Starbucks is fighting global poverty with sustainable poverty reduction.

– Michelle M. Schwab
Photo: Unsplash

Elexiay Clothing BrandAs artisans stitch rows of thread, their fingers pull yarn through loops in patterns passed down across generations. Elexiay, a Lagos-based Nigerian clothing brand, takes pride in its handmade garments crafted by a team of accomplished women crocheters. Supporting a small clothing business like Elexiay allows consumers to back community-based entrepreneurs as opposed to faceless fast fashion corporations. Small businesses have to compete with fast fashion giants, which makes it difficult for these smaller businesses to thrive. Especially in the wake of the COVID-19 pandemic, supporting small businesses can make a significant impact on the lives of employees. The Elexiay clothing brand empowers Nigerian women and provides jobs to help them rise out of poverty.

The Elexiay Clothing Brand

Elexiay is a brand that redefines crocheted clothing, which is often stereotyped as “grandma’s clothing.” Elexiay’s collection of products is a reinvention of crocheted clothing that keeps up with the latest fashion trends. With crocheted crop tops, skirts and maxi dresses featuring elegant slits, Elexiay displays its grasp of the year’s latest trends.

Elexiay’s signature crocheted designs serve a greater purpose than just style. Elexiay’s founder, Elyon Adede, described to The Zoe Report how vital women’s empowerment is to Elexiay. Accordingly, Elexiay solely employs Nigerian women who handcraft each piece of clothing. Many after-school programs in Nigeria teach the art of crochet. Due to the emphasis on craftsmanship, Elexiays’s employees avoid the hazards associated with factory textile production and can share Nigeria’s art of crochet with the world.

Rising Poverty in Nigeria

Before the COVID-19 pandemic began, approximately 40% of Nigerians lived below the poverty line, with millions more at risk of falling into poverty. During the pandemic, international oil prices dropped. This decline severely impacted Nigeria’s economy as more than 60% of Nigeria’s government revenue comes from oil. According to the World Bank, the consequences of the pandemic, coupled with Nigeria’s oil price crisis, could “push around 10 million additional Nigerians into poverty by 2022.”

In this way, Elexiay’s emphasis on fair wages and other ethical labor practices coincides with a time when millions of Nigerians face the risk of poverty. The company’s commitment to the “creation of jobs locally” demonstrates how a small clothing business can help communities in times of economic uncertainty.

Elexiay’s Dispute with Fast Fashion Brand

Despite Elexiay’s success in designing crocheted clothing, the company has faced difficulties. For instance, Elexiay posted a picture on Instagram of one of its pink and green crocheted sweaters side-by-side with a sweater featured on a fast fashion corporation website on July 16, 2021.  The sweater sold by SHEIN, the corporation in question, used a design strikingly similar to the pattern crafted by artisans at Elexiay.

In the Instagram caption, Elexiay described itself as a “small black-owned independent sustainable business” and expressed frustration in seeing “such talent and hard work reduced to a machine-made copy.” The caption also urged SHEIN to remove the sweater from its website.

Since posting the side-by-side comparison of the sweaters, Elexiay’s post received more than 97,000 likes and hundreds of supportive comments. While SHEIN has removed the controversial sweater from its website, this is not the first instance of SHEIN being accused of stealing designs. For example, designer Mariama Diallo accused SHEIN of stealing one of her dress designs for the brand Sincerely Ria in June 2021.

Aside from feeling disheartened after seeing the sweater on SHEIN’s website, the Elexiay clothing brand founder also expressed disappointment in SHEIN’s practices overall. In an interview with Insider, Adede describes the experience as especially difficult because “SHEIN is known for its unethical labor practices, which is the opposite of what I stand for.”

Supporting Small Clothing Businesses

While Nigeria has seen a rise in poverty as a result of the COVID-19 pandemic, individuals around the world can make deliberate choices that benefit communities in Nigeria. The women employees of Elexiay crochet garments by hand, spending days on each piece to share the art of crochet with the rest of the world and are provided with a job and an income through the process. When making the decision of whether to shop from a large fast fashion corporation or a local business, it is important to question the values that each brand holds.

Madeline Murphy
Photo: Flickr

Ghanaian local businessesOn June 26, 2021, the 22nd annual Vodafone Ghana Music Awards (VGMAs) crowned Diana Hamilton Artist of the Year. This honor makes her the first female gospel singer to ever win the trophy and comes on the heels of year-long praise for her song “Adom,” which also won Gospel Song of the Year. While Vodafone Ghana sponsors the VGMAs to support the celebration of Ghanaian musicians like Hamilton, the company also recently partnered with Invest in Africa to aid local Ghanaian businesses and ignite growth in Ghana’s economy.

A Promising Partnership

Created in 2012, Invest in Africa (IIA) operates in five African nations: Ghana, Kenya, Senegal, Zambia and Mauritania. According to Carol Annang, IIA’s Ghana country director, IIA strives to create jobs and attract investment opportunities for local businesses. By uniting small and medium-sized enterprises (SMEs) with large corporations, Annang says that these types of partnerships can help corporations “use their local buying power as a force for good.”

Since Vodafone Ghana has expressed its dedication to Ghana’s economic and social growth, the partnership with the IIA gives Vodafone Ghana the opportunity to utilize its resources in accordance with the company’s mission. Additionally, because Vodafone Ghana has served small businesses for years, the company can provide IIA with additional experience in “network-based IT and communication solutions.”

Specific Solutions

The IIA and Vodafone Ghana will focus on two solutions to propel the growth of Ghanaian local businesses:

  1. Red Trader: This mobile application and web portal assists traders in overseeing their inventory. Additionally, the application features tools that allow traders to track and collect payments.
  2. Your Business Online: This proposal helps SMEs expand their businesses online with the assistance of Vodafone Ghana’s team. The company’s experts help businesses create an online presence through professional site designs, “e-commerce integration and social media marketing.”

Through these measures, IIA and Vodafone Ghana hope to expand the digital presence of local Ghanaian businesses and boost the economic growth of these businesses. These solutions are set to begin implementation on April 1 for at least two years.

COVID-19 Setbacks and Steps Forward

As Ghana continues to recover from the COVID-19 pandemic, this plan for Ghanaian business growth comes at an opportune time. While coronavirus infections rose throughout the country and businesses permanently closed, by the third quarter of 2020, Ghana entered a recession for the first time since 1982. Additionally, Ghana’s GDP grew only 1.1% in 2020 compared to a growth of 6.5% before the pandemic began.

Because of this low GDP increase and Ghana’s high population growth, the real per capita income of Ghana was “1% lower [in 2020] than in 2019.” Moreover, according to the World Bank Group, additional impacts of the pandemic will include decreases in “foreign direct investment and tourism receipts.” Consequently, many families in Ghana have become impoverished and the country’s poverty rate has increased since the start of the pandemic.

However, one of the principal objectives of the collaboration between IIA and Vodafone Ghana is to help businesses recover from COVID-19 setbacks. In fact, William Pollen, the CEO of IIA, expressed how necessary it is to support SMEs because these enterprises employ the majority of people living in sub-Saharan Africa and constitute roughly 80% of business activity in the region.

The Road Ahead

On the whole, despite the past year’s struggles and the hurdles that arise on the road to economic recovery, the partnership between IIA and Vodafone Ghana presents a positive outlook for the future of local Ghanaian businesses. In the words of Tawa Bolarin, the director of Vodafone Business, “these are indeed exciting times for us and the entrepreneurial community in Ghana.”

– Madeline Murphy
Photo: Flickr

E-Commerce Connecting Afghan Women Entrepreneurs to the Global MarketIn 2020, 47.3% of Afghanistan’s population lived below the national poverty line. Poverty in the country increased sharply over the last decade due to a stalled economy and the rise of Taliban insurgency. It left almost 90% of Afghans struggling to live and unable to support their families with their current income. This combined effect of stagnating economic growth and deteriorating security resulted in poverty hitting record-breaking heights. The high poverty rate is especially dire for Afghan women. However, e-commerce is providing Afghan women entrepreneurs the opportunity to join the global market and push their communities out of poverty.

History of Female Entrepreneurs in Afghanistan

Women suffered deeply during Afghanistan’s almost 40-year war. They ferociously and tirelessly fought for gender equality. During the Taliban regime from 1906 to 2001, women were denied access to basic rights such as education, employment, freedom of movement and healthcare. Essentially, women were either invisible in public life or subjected to continuous violence. After 2001, female activists achieved significant legislative progress. However, the patriarchal structures, religious fundamentalism, the Taliban’s remaining rhetoric and the all-prevailing insecurity of the nation still shape the country and hinder the progress toward equality.

The Successes of Online Commerce

Despite poverty, corruption and political instability, Afghan women all over the country found a way to break away from their conservative society through digital advancements. One of the ways women entered into the world of business was through the Afghan e-commerce site Click.af. Founded in 2016 by Masiullah Stanikzai, Click.af provides Afghans access to a domestic online market. The site started shipping globally last year. The main reason behind the expansion was to connect local designers and artisans to a larger base of consumers around the world. It also promoted Afghan-made products. When sellers register on Click.af, they can find technology, tools and infrastructure to help them grow and succeed. The elements include customer management, marketing and sales tools to manage consumers while showing their presence online and boost sales.

Real Stories of Female-run Businesses

Click.af inspires young women to be entrepreneurs. Currently, the e-commerce platform has enabled 45 Afghan women entrepreneurs to launch their own small businesses. One of these women is 25-year-old Maryam Yousufi, who launched the fashion line called Machum. Yousufi’s brand focuses on designing clothes that fuse Western style with traditional Afghan designs. Yousufi’s dream was to see her products reach global markets. She believes online platforms can give others a chance to try entrepreneurship and overcome conservative attitudes toward women. Through Click.af she was able to receive a credit to start a business.

Women entrepreneurs, especially those in the sector of social entrepreneurship, often disrupt patterns of gender inequality. They reshape dominant expectations, norms and stigmas. According to the World Economic Forum, Yousufi couldn’t even dare to believe that one day she would be able to sew clothes. Yousufi is now designing and selling clothes. According to Yousufi, the opportunity she found through e-commerce allowed her to make decisions in a country where others usually made decisions for her. Click.af is about selling and connecting, but it also shows Afghan women entrepreneurs that they have the right to choose a path for themselves.

Advances for Women Entrepreneurs

E-commerce is a powerful tool that is capable of bringing great benefits to female entrepreneurs. It challenges the old barriers of geographic isolation and restricted access to information and financing. Thanks to the expansion of e-commerce, people in Afghanistan today can shop with full information. They now have the knowledge of the pros and cons of the products instead of relying on word-to-mouth. E-commerce platforms, including Click.af, have also made it possible for shops to open 24/7. This resulted in a meaningful increase in sales for local sellers. More importantly, e-commerce is a necessity in Afghanistan since COVID-19 reached the country and mobility was consequently limited. During the lockdown, while most physical stores and public companies closed, online retailers were able to operate without violating social distance regulations.

Looking Forward

Although e-commerce ventures in Afghanistan still struggle to flourish due to issues such as security issues, capital investments and online payments, there is no doubt that online shopping will exponentially increase its presence in the next few years. Platforms similar to Click.af provide an important opportunity for Afghanistan’s war-torn economy, and more specifically, it demonstrates how empowering female social entrepreneurs is key for the country’s economic recovery. Click.af has been able to reframe the definition of success in a more inclusive manner, which includes and celebrates Afghan women who, against all odds, are taking a chance and jumping into entrepreneurship.

– Alejandra del Carmen Jimeno

Photo: Flickr 

Poverty Alleviation and Entrepreneurship
Research shows supporting entrepreneurship in low-income countries may be one of the most effective ways to permanently reduce global poverty. Despite this, this method of poverty reduction has often been overlooked. This is due to the fact that there has been limited information on its positive impact. However, with more information compiled, individuals in positions of power have sought to make it a focus of poverty reduction. The Global Partnership for Poverty and Entrepreneurship (GPPE) is an organization that has collected a plethora of this data. The resources on the GPPE website provide countless examples of poverty alleviation and entrepreneurship.

The Global Partnership for Poverty and Entrepreneurship

Established in November 2019, the GPPE officially launched in May 2020. This partnership was created by the University of Notre Dame with the intent of building up a research base that can help with future initiatives in supporting low-income individuals with entrepreneurial pursuits throughout the world. In an interview with Dr. Michael Morris, the head of this start-up, the three main objectives of this organization became clear. The first objective was to gather information on entrepreneurial startups in poor communities throughout the world. The second objective was to teach individuals about compiled information within poor communities in order to allow for community uplift. The third objective was to reach out to academics who have an influence on getting more research done on these topics and easily spread techniques to those within their academic influences.

Overall, the GPPE wants to get more people on the ground within impoverished communities. These people would support the poor with their entrepreneurial endeavors. The GPPE is currently setting up example programs within the United States. The purpose of these programs is to prove resources in various areas can be useful in supporting low-income individuals. Within South Bend, Indiana one of these example programs is the Urban Poverty and Business Initiative. This initiative uses resources from the Notre Dame community, especially from the students, to help poor individuals set up entrepreneurial endeavors. Students have helped create social media platforms and helped with marketing for the impoverished in the South Bend community. This is just one idea countries around the world can use to help reduce global poverty.

Entrepreneurship Among the Youth in Swaziland

A study on the youth in Swaziland has provided important information on where certain entrepreneurial systems are lacking within Africa. Other countries can use this study as a resource to help enact systems for poverty alleviation through entrepreneurship. Inadequate work experience provided within universities, a lack of youth voice in entrepreneurial policies and weak business environments are all factors that have driven the youth within Swaziland to have poor entrepreneurial experiences in the past. Organizations like the Youth Enterprise Fund, created in 2009 in Swaziland, have struggled to support new entrepreneurs.

Models have, however, been created in order to show the effects of government intervention when it comes to reducing obstacles that hinder the growth of young entrepreneurs, which can be extremely useful. Examples of influential government intervention include granting youth greater access to capital and giving them business training. Business training in particular has shown to make an enormous difference among the youth of Swaziland with regards to sales. A mixture of giving the youth in Africa more educational resources and professional connections has proven to greatly improve their entrepreneurial success and thus help them rise out of poverty.

Poverty-Reducing Work of Women in Bangladesh

In many low-income countries, the workforce does not utilize women as often as men. This can cause the viewpoint of women being financially burdening. Creating entrepreneurial and employment opportunities for women positively impacts their livelihoods. This is especially true for women living in rural areas. Within Bangladesh, a company called Hathay Bunano has given women both jobs and resources to build enterprises on their own. What this establishment has found is that not utilizing women is a huge waste of production resources. This includes supporting more women artisans through developing pride in the ownership of a product.

Hathay Bunano has worked to employ women who are at the most disadvantaged positions within Bangladesh. The organization has shown that simply giving these women jobs boosts their self-confidence in order to create better lives for themselves. Hathay Bunano is a company that produces hand-knit toys which is important in the context of proving that handicraft businesses can thrive in a competitive economic market. Overall, evidence shows providing grounding for poor women to start businesses that can be supported by their skill levels is plausible.

In conclusion, information that the GPPE has compiled, including the two studies mentioned above, shows poverty alleviation and entrepreneurship can go hand in hand. Working to inform more individuals on how communities can support the poor in their creation of businesses and entrepreneurship will transform low-income countries’ economies and the lives of the poor within them.

– Olivia Bay
Photo: Flickr

Women-Led Tech Startups in Africa
Currently, only 28% of women worldwide pursue careers in science, technology, engineering or mathematics. This gap is a result of women dropping out of STEM courses based on social, cultural and gender norms. Around the world, girls face limited educational pathways and resources within STEM subjects. To address the barriers in STEM education and the tech industry, many women-led tech startups in Africa are encouraging women to pursue tech careers.

The Rise in Women-Led Businesses in Africa

According to the United Nations Africa Renewal Magazine, “sub-Saharan Africa boasts the world’s highest rate of women entrepreneurs, at 27%.” As part of the United Nations Sustainable Development Goal 6 (SDG6) to improve clean water and sanitation, it is expected that 2.5 million engineer and technician jobs will be created in Sub-Saharan Africa. As a result, women will have opportunities to pursue a career in tech. There will also be a market space for women-led tech startups in Africa.

To encourage women to enter the tech industry in Africa, African women have started initiatives that promote and invest in women interested in the tech field. For Example, African Women in Technology, FirstCheck Africa, #HerFutureAfrica and Women in Tech Africa are all notable initiatives led by African Women. Highlighted below are five inspiring women who have contributed to the rise of women in the male-dominated tech field.

5 Women Leading the Emergence of Women-Led Tech Startups in Africa

  1. Nthabiseng Mosia from South Africa: Mosia is an entrepreneur and the co-founder and Chief Commercial Officer of Easy Solar. Easy Solar, based in West Africa, is an off-grid solar distribution company. It supplies electricity to communities with little or no access to the grid. As a result of Mosia’s company, more than 350,000 residents of Sierra Leone’s communities have access to affordable energy.
  2. Rachel Sibande from Malawi: As well as a social entrepreneur working in technology and energy, Sibande is a computer scientist. She is the founder of mHub, a technology hub for innovators and entrepreneurs. Offering access to financial and investment support across five countries, mHub is a key resource for women-led tech startups in Africa. From 2018 to 2019, mHub financed $800,000 to youth and women entrepreneurs, which created 304 jobs. In addition, Sibande has established the Girls Coding Club, Children’s Coding Club, a Robotics Club and Machine Learning community camps. These clubs encourage more girls and women to pursue careers in tech.
  3. Farida Bedwei from Ghana: Bedwei is a software engineer and disabilities rights advocate. She is the Chief Technology Officer and co-founder of software company Logiciel. Logiciel develops technology solutions and provides micro-banking systems for more than 600 financial institutions. She was named one the most influential women in business in Ghana and a Young Global Leader by the World Economic Forum in 2016.
  4. Jumoke Dada from Nigeria: Dada is a tech consultant and the founder of Tech Women Network, which provides a platform for women in technology to showcase their skills. Dada is involved with HUE Tech Summit, an event for women of color in tech as well as Techies Who Brunch, which helps women connect in the industry. Her efforts contribute to upskilling women interested in tech, making Dada is a leader and advocate for women in the tech industry.
  5. Rebecca Enonchong from Cameroon: Enonchong is an advocate for technology entrepreneurship and innovation. She is the Chair of ActivSpaces, the African Center for Technology Innovation and Ventures, and the founder and Chief Executive Officer of AppsTech. ActivSpaces is a tech hub in Cameroon that promotes and supports young people to have successful careers. AppsTech provides tools for tech entrepreneurs to grow their enterprises such as license sales, implementation and training services. With available sources like AppsTech, Enonchong’s efforts are important in the emergence and growth of women-led tech startups in Africa.

These five women are making a significant difference in Africa and paving the way for more female entrepreneurs, especially in the tech industry. With these innovative efforts, the number of women-led startups in Africa will hopefully continue to increase.

– Malala Raharisoa Lin
Photo: United Nations Economic Commission for Africa