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Estonia’s Startup Ecosystem Supports Economic Growth

Estonia's startup ecosystemThe startup ecosystem in Estonia has become a key driver of economic growth and innovation in recent years. Known for its advanced digital infrastructure and business-friendly policies, Estonia has created an environment where startups can develop and scale efficiently. These efforts have contributed to job creation, increased foreign investment and a more diversified economy. 

As a result, Estonia is often recognized as one of the most digitally advanced countries in Europe. Government initiatives and public-private partnerships play a central role in supporting startups. By combining digital governance with entrepreneurial support programs, Estonia has built a system that encourages innovation while reducing barriers to entry for new businesses.

Startup Estonia

One of the primary initiatives supporting Estonia’s startup ecosystem is Startup Estonia. This government-backed program aims to develop the country’s startup sector by connecting entrepreneurs with funding, mentorship and global markets.

Startup Estonia works to attract international investors while also supporting local entrepreneurs through networking opportunities and training programs. The initiative has helped foster a collaborative environment where startups can grow and access global resources. By strengthening connections between businesses, investors and policymakers, the program supports long-term economic development.

E-Residency Program

Another major contributor to Estonia’s startup ecosystem is the e-Residency program. This initiative allows individuals from around the world to establish and manage businesses in Estonia entirely online. Through e-Residency, entrepreneurs can access Estonia’s digital services, including company registration, banking and tax filing. 

This program has attracted thousands of international business owners, increasing foreign investment and expanding Estonia’s economic reach. By reducing administrative barriers, e-Residency enables startups to operate efficiently in global markets.

Digital Infrastructure and Innovation

Estonia’s digital infrastructure plays a central role in the success of its startup ecosystem. Platforms such as X-Road allow secure data exchange between government institutions, reducing bureaucracy and improving efficiency.

Digital ID systems also enable citizens and entrepreneurs to access services quickly, from signing contracts to filing taxes. These systems reduce the time and cost associated with starting and running a business. As a result, startups can focus more on growth and innovation rather than administrative processes.

Investment and Economic Impact

The Estonian startup ecosystem has attracted significant investment from both domestic and international sources. Venture capital funding and accelerator programs provide startups with the financial resources needed to scale their operations.

These investments have contributed to job creation in sectors such as technology, finance and logistics. As startups expand, they create employment opportunities and contribute to economic diversification. This growth can also benefit low-income Estonians by opening up new pathways to stable employment, particularly for young people and job seekers looking to enter emerging industries. 

Over time, a stronger, more diversified economy can help reduce poverty by increasing household incomes and expanding access to economic opportunities.

The Big Picture

The Estonian startup ecosystem demonstrates how targeted policies and digital innovation can drive economic growth. Programs such as Startup Estonia and e-Residency, combined with strong digital infrastructure, create an environment where businesses can thrive.

As Estonia continues to invest in entrepreneurship and innovation, its startup ecosystem offers insights for other countries seeking to promote economic development. By reducing barriers to entry and supporting small businesses, the startup ecosystem in Estonia contributes to long-term economic stability and opportunity.

– Jason Hill

Jason is based in Fullerton, CA, USA and focuses on Business and Technology for The Borgen Project.

Photo: Unsplash

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Syrian Refugee Entrepreneurship in Turkey

Syrian Refugee Entrepreneurship in TurkeyTurkey hosts one of the largest refugee populations in the world, with more than 3.2 million Syrians under temporary protection living across the country. While displacement is often portrayed as an economic burden, many Syrian refugees demonstrate resilience through entrepreneurship.

According to the World Bank, Syrian youth in Turkey increasingly start businesses as a pathway to economic empowerment, navigating formal and informal markets despite legal and financial constraints. These enterprises range from retail and services to manufacturing, creating jobs for both refugees and Turkish citizens. This growing business activity highlights how migrant entrepreneurship can contribute to a host country’s economy by generating income, expanding local markets and supporting poverty reduction. Syrian refugee entrepreneurship in Turkey shows how displaced communities can build economic opportunities despite challenging circumstances.

The Scale of Syrian Refugee Entrepreneurship in Turkey

Since the start of the Syrian conflict in 2011, many Syrians living in Turkey have moved beyond informal work and started their own businesses. Research from the Economic Policy Research Foundation of Turkey indicates that more than 10,000 Syrian-owned companies have been officially registered across the country. These businesses operate in sectors such as retail, trade, manufacturing and food services, reflecting both market demand and the needs of local communities.

Syrian-owned businesses are especially concentrated in cities such as Istanbul, Gaziantep, Hatay and Mersin, where strong trade networks and geographic proximity to Syria support commercial activity. In industrial centers like Gaziantep, Syrian entrepreneurs also contribute to regional trade connections and export activity.

On average, Syrian-owned firms employ between five and nine workers, including both Syrian refugees and Turkish citizens. This level of activity shows that Syrian refugee entrepreneurship in Turkey has moved beyond subsistence strategies and now contributes to local labor markets and small business ecosystems.

Economic Contributions: Jobs and Market Expansion

Syrian refugee entrepreneurship in Turkey also plays a growing role in job creation and market expansion. Since the start of the Syrian conflict, thousands of Syrian-owned businesses have opened across the country, operating in sectors such as retail, manufacturing and food services. These enterprises generate employment opportunities for both refugees and Turkish citizens.

Studies show that Syrian small and medium-sized businesses employ around seven workers on average, strengthening local labor markets and supporting small business ecosystems. In addition to employment, Syrian entrepreneurs contribute to trade networks that connect Turkish markets with partners across the Middle East. Through investment, production and cross-border commerce, Syrian-owned businesses increasingly support economic activity in the regions where they operate.

Challenges and Barriers for Syrian Entrepreneurs

Despite the growth of Syrian-owned businesses, refugee entrepreneurs in Turkey still face several structural barriers. Access to finance remains one of the most significant challenges, as many refugees lack the credit history or collateral required by formal financial institutions. Language barriers and unfamiliar administrative procedures can also make business registration and regulatory compliance more difficult.

Limited access to professional networks and business support services may restrict opportunities for growth and market expansion. Although Turkey introduced work permit regulations for refugees under temporary protection in 2016, many entrepreneurs still face difficulties navigating the formal business environment. Addressing these barriers remains important to help refugee-led businesses reach their full economic potential and expand their contributions to local economies.

Programs Supporting Refugee Entrepreneurship

Several international organizations and local initiatives support refugee entrepreneurship in Turkey. Programs led by the United Nations Development Programme (UNDP), the International Labour Organization (ILO) and other partners focus on strengthening refugee-led businesses through training, mentorship and policy guidance. These initiatives promote entrepreneurship as a pathway to sustainable livelihoods while also encouraging economic cooperation between refugees and host communities.

Local initiatives such as the İMECE Project also support refugee entrepreneurs by providing training and networking opportunities. Supported by the United Nations High Commissioner for Refugees (UNHCR) and the Habitat Association, the program has trained more than 9,000 participants and helped develop new refugee-led businesses. These initiatives demonstrate how targeted support programs can help transform refugee entrepreneurship into long-term economic opportunities that benefit both refugees and local communities.

Looking Ahead

Syrian refugee entrepreneurship in Turkey illustrates how displaced communities can contribute to economic growth when given opportunities to participate in local markets. By creating businesses, generating employment and strengthening trade networks, Syrian entrepreneurs increasingly support economic activity in the regions where they live. Continued support through training programs, inclusive policies and business development initiatives can help expand these contributions and promote long-term economic resilience for both refugees and host communities.

– Elif Oktar

Elif is based in London, UK and focuses on Business and Good News for The Borgen Project.

Photo: Flickr

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Immigrant Entrepreneurs: Coffee Shops Fight Global Poverty

immigrant entrepreneurs“Local businesses give warmth,” claim Coffee Links owners Leon and Ellie Araujo. “When you see [food] chains it feels like a cold city.” Leon and Ellie are proud owners of Coffee Links, an immigrant-owned business.

Ellie and Leon’s success story with their business is an important story to highlight. Originally from Mexico City, they immigrated to a new country in 2009 with their three kids. In 2013, they opened their first coffee shop, and today they have two thriving Coffee Links locations.

Entrepreneurship an underlying factor in fueling local economies. In other words, this is a pattern seen all over the world in assisting the economy. Entrepreneurs bring more than 50% to GDP and more than 60% of employment.

Furthermore, 25% of entrepreneurs are immigrant-owned and are positively influencing the economy, including job growth, unemployment, home values, and reduced vacancies.

Improving the Economy

Small businesses are a leading driver of poverty reduction. This is an alternative sector in socio-economic development that is alleviating poverty. According to the International Journal of Research Studies in Agricultural Sciences (IJRSAS), small businesses have had significant positive effects in both developing and developed countries.

Leon truly believes his business has contributed to the local economy, “The taxes give back to the community. All of it stays here in the community.”

When talking about why it is important to create local jobs, Leon Araujo answers, “The team is 50% of the support.” According to the Immigration Policy Center, immigrant entrepreneurs can contribute to local communities by modernizing neighborhoods and public areas, rejuvenating cities and towns.

More specifically, establishments like Coffee Links, a cafe/coffee shop, are the backbone of communities. Coffee Links, like many immigrant-owned businesses, attracts more local business and creates jobs. For example, it can generate direct hires, delivery drivers, cleaners, and suppliers. It can draw attention to collaborations with vendors, coffee roasters, florists, or bakers.

Barriers

“It is more difficult to be an immigrant entrepreneur,” says Leon, compared to being a native-born entrepreneur. Common barriers immigrant entrepreneurs face include language barriers and cultural differences. For example, learning a new language is difficult enough; trying to clearly communicate business ideas and follow regulations in a new language adds to the difficulty.

Leon claims there is one barrier immigrant entrepreneurs face that commonly goes unnoticed. It is a barrier to receiving financial assistance or loans. Leon Araujo is a legal resident of the country where he now lives, and he has had difficulty obtaining credit assistance from banks and credit unions, even though he is fully qualified. Many Hispanic entrepreneurs struggle to access financing and investors due to potential language and cultural barriers. According to The Statement, Hispanic immigrant entrepreneurs are more likely to rely on their savings than to take out a loan, seeking minimal funding. However, if they were to maximize their banking resources, they could potentially ”generate $1.4 trillion in additional revenue.”

Remittance

Many immigrant entrepreneurs send money to loved ones in their home countries. This is called remittance. Migrants who send money home have a significant impact on developing countries in Asia, Africa, and Latin America. In 2023, global remittances were estimated at over $800 billion.

“I do not send remittance to family in Mexico,” explains Leon, “I am invested in where I am now.” Although Leon may not send money home to family or friends, it is not uncommon for Mexican immigrant entrepreneurs to do so. Remittances sent home fund many Mexican households; about 4.5% of families rely on them. 

What does success look like now?

Mexican immigrant entrepreneurship, such as that of Leon and Ellie, strengthens local economies and contributes to global poverty reduction. Around the world, immigrants play a major role in launching new businesses, generating jobs, and stimulating local economic activity — all key components of long-term economic development. Additionally, remittances sent by migrant families provide more financial support to developing countries than traditional foreign aid, making them one of the most effective tools for reducing global poverty.

“When I first started the business, it was tough,” Leon says. He had to remember that success is not linear and there would be many ups and downs with the business. The most important thing was that he had to believe in himself.

Today, Leon has redefined what success means to him. He claims that he and his family have reached success and are open to anything that will expand the business. He continues to strive to develop a 3rd location

– Mireya Aguilar

Mireya is based in Layton, UT, USA and focuses on Business and New Markets for The Borgen Project. 

Photo: Flickr

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Digital Opportunity Trust: Promoting Digital Inclusion

Digital Opportunity TrustDigital innovations in online education and e-commerce have created new avenues for poverty reduction through economic inclusion. The digital economy can drive inclusive development by equipping people with the tools to lift communities out of poverty. Access to the internet provides better education and skill development, enhancing employability and market participation.

Digital Opportunity Trust

Digital Opportunity Trust (DOT) is a Canadian organization that delivers programs to young entrepreneurs on how to profit from the digital economy. Since 2002, DOT has been working to bridge the digital divide by connecting young people globally to essential digital skills. More than 3 million people in impoverished communities across more than 20 countries have benefited from DOT’s youth leaders.

DOT fosters inclusive development by preparing young leaders to participate in the digital economy and support economic growth at a local level. DOT’s Youth Entrepreneurship program aims to mitigate barriers to digital inclusion by providing young people with access to digital tools in addition to skill training and development. With a solid foundation in digital competencies, DOT is positioning young entrepreneurs as leaders of economic growth.

Initiatives like the Digital Bridge Project aim to educate 10,000 young people in Kenya and Ethiopia on how to use digital tools for their professional and personal development by April 2026. This initiative cultivates a new generation of digitally literate leaders prepared to drive poverty reduction in the digital age.

Economic Benefits of the Digital Economy

We can look to Kenya’s progress for how digital inclusion can transform a society and strengthen its economy. The “Silicon Savannah” has seen steady growth in its Information and Communication Technology (ICT) sector since 2016, creating jobs across almost all industries. Kenya’s investment in developing human digital capital aligns with DOT’s efforts to create a “digitally savvy workforce” capable of tapping into new opportunities for economic growth in the digital sphere.

Creating more jobs, especially for young people and promoting sustainable development by leveraging digital markets. The combined efforts of the public and private sectors support job creation and economic diversification in the digital age. Furthermore, Kenya’s adoption of broadband infrastructure has positioned the country as a leader in Africa’s digital economy.

Through its progressive digital strategy policies, Kenya aims to create 300,000 new jobs by 2028 by integrating digital technologies across the agriculture, transport, manufacturing and trade sectors.

Rural Barriers and New Pathways

While progress is being made, the digital divide disproportionately impacts rural populations. Limited internet access among 83% of rural residents limits digital skill development and market participation. To bridge this gap, DOT Kenya youth leader Samuel Mathenge led training sessions that enabled youth in Nyeri County to engage with the digital market.

Through DOT’s Youth program, he strengthened his own skills and trained more than 600 young people in digital literacy. “My journey with DOT Kenya has not only transformed me into a confident digital skills facilitator but also a compassionate and patient leader,” Mathenge stated. Fresh off his DOT training and equipped with the confidence to lead, Mathenge worked with other young people to not only master digital tools but also prepare for the job market.

Together, they searched for careers in the tech sector, refining their CVs and preparing for interviews. DOT’s investment in one young entrepreneur has created a cycle of youth empowerment in Kenya. Mathenge is just one of thousands of DOT Youth leaders globally, working to foster inclusive development in their communities.

Digital Foundations for Poverty Reduction

Digital inclusion opens pathways for education, skill development and youth participation in the labour markets, laying a digital foundation for economic growth and poverty reduction. Indeed, initiatives by DOT empower young entrepreneurs to engage with the digital economy, equipping them with the skills and agency to drive sustainable growth. DOT places economic power in the hands of young leaders, enabling them to thrive in their communities and create lasting change.

– Hope Jowharian

Hope is based in Paris, France and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr

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Thai Handicrafts Online: Selling Culture, Escaping Poverty

Thai Handicrafts Online: Selling Culture, Escaping Poverty Craftsmanship has always been essential to cultural identity and community survival in Thailand’s rural areas, from the silk-weaving villages of Isaan to the silver workshops of Chiang Mai. In 2024, the Thai handicrafts market was valued at $3.63 billion. Handmade goods that represent centuries-old customs allow generations of artisans to support themselves. However, many rural artists find their livelihoods in jeopardy as international markets change and tourism patterns shift.

Thailand’s digital development has provided a new lifeline in recent years. Thai handicrafts are now sold online through social media platforms, e-commerce marketplaces and inexpensive smartphones, which connect rural artists with consumers worldwide. According to a World Bank study, digital technology may spur economic growth by generating more jobs, improving services and increasing productivity. What was once a small-scale, independent exchange is now part of the global digital economy. In addition to increasing revenue, the shift is reshaping what it means to preserve culture in the 21st century.

For many of these craftsmen, the internet serves as a means of escape from poverty rather than merely a platform for sales. Thailand has the second-largest digital economy in the Association of Southeast Asian Nations (ASEAN) region, accounting for an estimated 6% contribution to its gross domestic product (GDP). Local artisans are transforming tradition into opportunity by bringing Thai handicrafts online.

The Problem: Limited Market Access and Low Income

Thailand’s rural artisans have long been known for their exceptional talent in silk weaving, wood carving and pottery molding. However, many remain impoverished despite their artistic abilities. According to the Office of the National Economic and Social Development Council (NESDC), 3.43 million Thais with a monthly income of less than 3,078 baht were considered “poor” in 2024. The issue is a lack of opportunities, not a lack of talent.

Due to their remote locations from important trade hubs, rural farmers often face high transportation costs and limited access to reliable markets. In 2020, there were more than 2.3 million rural poor than urban poor, and the poverty rate was more than three percentage points higher in rural areas. Without branding knowledge or language skills to appeal to global buyers, their products struggle outside local markets. As a result, even skilled craftspeople often earn less than the federal minimum wage.

The E-Commerce Revolution

That reality is shifting as Thailand’s e-commerce industry experiences rapid growth. The digital marketplace, expected to reach more than $30 billion by 2025, is changing the way small businesses interact with customers. Thousands of rural business owners now have online stores selling Thai handicrafts through platforms like Shopee, Lazada, Etsy and TikTok Shop. With $684 million in online sales in 2024, Shopee is the largest online retailer in the Thai stationery, crafts and art supplies market.

With e-commerce growth predicted to reach 750 billion baht in 2025, the Department of Business Development is increasing efforts to help small and medium-sized enterprises (SMEs) adopt online selling. Communities previously closed off from formal trade now have new economic opportunities. Mobile phones and Wi-Fi connections have become transformative tools in villages once reliant on tourist foot traffic.

This digital transformation reflects a worldwide trend in reducing poverty. E-commerce increasingly serves as an equalizer for small-scale producers across Asia, Africa and Latin America. For every 10-percentage-point increase in mobile broadband usage, GDP initially increases by 0.8%. By connecting rural craftsmen to online markets, countries can pursue inclusive growth beyond urban industrialization. Thailand’s experience demonstrates how local entrepreneurship supported by digital access can contribute to poverty alleviation.

Success Stories: Digital Market Access in Action

All regions of Thailand are seeing the advantages of internet access. Isaan silk cooperatives in the northeast have transformed centuries-old weaving customs into successful online enterprises exporting handcrafted textiles to Japan and Europe. Hill tribe jewelry collectives in the north have drawn international attention by selling on Etsy, where buyers value originality and skilled craftsmanship. Meanwhile, small business owners participating in the One Tambon, One Product (OTOP) initiative have expanded their audience on TikTok Shop by using short videos as marketing tools. According to PCMI predictions, internet sales reached $38.5 billion in 2024 and are expected to rise to $58.5 billion by 2027.

Obstacles and Inequality

The advantages of e-commerce are still not equitably shared. High shipping costs, poor logistics networks and rural internet shortages continue to limit artisans’ ability to earn money online. Digital literacy remains a major barrier. Some producers rely on younger family members or middlemen to manage their online listings, leaving them vulnerable to unfair practices or irregular sales. According to an NESDC poll, 64.7% of people have below-average literacy skills, and 74.1% have below-average digital skills.

Experts are advocating for local e-commerce hubs and community-based digital ambassadors who offer shared resources such as Wi-Fi, photography studios and online marketing support. In the absence of such support, the digital gap risks reinforcing the barriers it seeks to dismantle. The National Citizen Digital Competency (NCDC) program aims to train 1,000 senior citizens nationally by 2024. Its goal is to raise Thai residents’ digital competency to an average evaluation score of 80 by 2027.

Policy and NGO Solutions

Governments and nonprofits have begun addressing these issues through initiatives that combine digital inclusion with poverty alleviation. With the expansion of its online presence, Thailand’s One Tambon, One Product (OTOP) initiative provides local manufacturers with a state-supported platform to sell Thai handicrafts globally. Additionally, the United Nations Development Programme (UNDP) has partnered with Thai authorities to deliver digital and financial literacy training for rural entrepreneurs.

Private-sector organizations have also taken action. Thousands of women artisans have benefited from Facebook’s #SheMeansBusiness Thailand initiative, using social media to create online businesses and access new revenue streams. These efforts form part of a broader plan to empower craftspeople through financing, capacity-building and digital inclusion. Experts advise continued investment in logistics infrastructure, affordable digital training and microloans that support sustainable business growth.

Digital Markets as Gateways to Dignity

Technology is more than innovation to Thailand’s rural craftsmen; it is access, empowerment and opportunity. Every digital payment, online store and smartphone connection brings rural artisans closer to financial independence. Across Thailand, local craftsmen are redefining livelihoods by turning traditional craftsmanship into sustainable online businesses.

The growth of the e-commerce market shows that expanding opportunities is as important to poverty alleviation as providing aid. Furthermore, Thailand’s experience offers a model for inclusive growth as digital infrastructure expands and more craftsmen acquire the skills needed to participate. Every handcrafted basket, woven scarf or silver bracelet sold online carries a piece of Thai culture and demonstrates how digital marketplaces can support dignity and opportunity.

– Katelyn Leano

Katelyn is based in Plainfield, IL, USA and focuses on Good News and Technology for The Borgen Project.

Photo: Pixabay

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How Entrepreneurship is Driving Poverty Reduction in Nigeria

How Entrepreneurship is Driving Poverty Reduction in NigeriaIn the shadow of Nigeria’s poverty statistics, where nearly two-thirds of citizens live on less than $2 a day, a quieter revolution is underway. In the dry-season heat of Benue State, a farmer rises at dawn to tend his maize and guinea corn. After each harvest, he sells part of his yield, feeds the rest to his livestock and uses their manure to fertilize the next crop. These animals double as savings and are sold once school fees are due. He has no insurance, no grant and no bank account, yet this quiet rhythm of work sustains his family.

Across Nigeria, millions live the same pattern of improvised survival. They are market women in Akwa Ibom, backyard gardeners in Borno and roadside tailors in Lagos. Their livelihoods may be invisible to the formal economy, yet they are fueling what researchers at the Institute of Development Studies (IDS) describe in their 2025 policy briefing, Growth from Below: Poverty Reduction beyond Social Protection in Nigeria, as the country’s most overlooked engine for poverty reduction.

Poverty Reduction in Nigeria

Nigeria’s economy, though the fourth largest in Africa by GDP, continues to grow too slowly to match its expanding population.

Since 2014, GDP per capita has stagnated, and inflation remains high, driven by soaring food and fuel prices. The International Monetary Fund (IMF) projects a modest 3% growth in 2025, below the continental average of 4%. For many Nigerians, these numbers translate into hunger. “Over a decade, Nigeria has experienced various shocks—political conflict, climate recurrence, floods, droughts and multiple economic crises,” Vidya Diwakar, deputy director at IDS’s Chronic Poverty Advisory Network, told The Borgen Project in a Zoom interview. “What we found is that many people tend to escape poverty through these informal investments.”

In 2023, the federal government declared a “state of emergency on food security” and launched large-scale farming initiatives. Dozens of programs, including MSME funds, skill-up training and tractor schemes, were rolled out to stimulate production.

But Dr. Stanley Ukpai, a CPAN researcher, told The Borgen Project in a Zoom interview that such interventions often overlook the informal economy. “We tend to see this approach to poverty alleviation where the government is making large investments,” he said, “but many times these investments don’t translate to substantial changes at the community and grassroots levels.”

The Rise of Growth from Below

That reality is at the heart of new IDS research, Growth from Below: Poverty Reduction beyond Social Protection in Nigeria (2025). Kareem Abdulrasaq, lead author of the study, told The Borgen Project in an interview: “There is no assistance; they still do it by themselves,” he explained. “It’s forms of agriculture, petty trading, livestock rearing and food processing—activities families created to survive, whether during a crisis or after it. This is what ‘growth from below’ really means.”

The study argues that household-level economic activity, not top-down welfare, has become Nigeria’s most effective engine of poverty reduction.

In Benue State, some farmers reinvest crop income to buy land and build homes. In Borno, a widow displaced by Boko Haram began growing vegetables to feed her children and sell at the market. In Akwa Ibom, a mother installed a palm oil press in her compound, turning a family tradition into income.

Across Nigeria, informal entrepreneurship functions as a safety net where formal systems fail. The IDS research highlights how these forms of resilience are now key drivers of poverty reduction. “Informal economies have historically been viewed as a cushion during crises,” Diwakar told The Borgen Project, adding that success should be measured by whether such enterprises enable sustained upward mobility through greater productivity.

Women at the Center

From roadside vendors to small processors, women make up the majority of micro-entrepreneurs. Yet policy is rarely on their side.

“The government is doing quite a lot,” said Ukpai, “but at the top level, there are these processes that don’t translate down to the communities. There’s a disconnect between policies on paper and real implementation at the grassroots.”

The IDS brief underscores this imbalance. While some social protection programs have offered women cash transfers or training, their coverage is inconsistent and short-lived. When the payments stop, many families fall back into poverty. Without legal recognition or access to formal finance, women rely on informal loans, often with high interest, to sustain their businesses.

One Akwa Ibom entrepreneur captured the dilemma: “I struggled even though I did not have money; I borrowed from somebody and installed the machine in my compound.” Her determination mirrors thousands of others whose work quietly sustains families and local markets.

Researchers agree that empowering women is one of the most effective paths out of poverty. The brief calls for fast-tracking the Women’s Rights and Inheritance Bill, enforcing joint land titling and ensuring that at least 40% of MSME grants go to women-led firms.

“Many young women during the cashless policy and fuel subsidy lost their capital,” Diwakar explained, “from which they could have invested or diversified their income.”

From Taxation to Support

Despite official rhetoric celebrating entrepreneurship, many small traders face harassment, multiple taxes and bureaucratic hurdles that stifle rather than support them.

“We come to the realization that we must support these groups to deepen their productivity, as opposed to revenue extraction, which is what we see,” said Ukpai. “If you have a little kiosk or a side shed where you run your informal business,” he added, “the community tax authorities are on your neck, the state tax authorities on your neck, even local touts want something. So even when there’s meager income, it’s dissipated through multiple taxation.”

The IDS team recommends “light-touch” registration systems, presumptive tax holidays for new micro-firms and bundled packages combining training, working capital and insurance. Such steps, they argue, would not only legitimize informal enterprises but also make them more resilient to shocks.

A Grassroots Blueprint for Change

The lesson emerging from Nigeria’s experience is clear: development can grow from below, but only if the state stops standing in its way. Supporting informal entrepreneurs, especially women, means acknowledging them as central to national growth, not as side characters in need of rescue.

As Ukpai put it, “For the government to take notice, it must recognize that people at community level already have strategies to escape poverty. Policy must meet them where they are—in the farms, the workshops and the markets.”

For Diwakar, poverty reduction in Nigeria “isn’t just about handouts; it’s about recognizing the systems of resilience that already exist and building policies that reinforce them,” she told The Borgen Project in a Zoom interview. With donor fatigue growing and global development budgets tightening, Nigeria’s “growth from below” offers a blueprint for sustainable, community-led development.

– Shannon Garrido

Shannon is based in Brighton, UK and focuses on Politics for The Borgen Project.

Photo: Flickr

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Maya Pedal: Bikes Transforming Lives in Guatemala

maya pedalIn a small, rural and predominantly Indigenous town in Guatemala, one NGO has found a new way to generate electricity whilst keeping costs low and fitness levels high. Maya Pedal began in 1997 in San Andrés Itzapa, 50 kilometres from Guatemala City, and takes old bikes which have been donated from the US and Canada and either sells them or repurposes them into bicimaquinas (bike machines). Local people and businesses then use these machines as makeshift water pumps, corn degrainers and blenders, among other things.

The name refers to the significant Indigenous population in Guatemala, who are primarily of Mayan descent, whilst ‘pedal’ has the same meaning in English. Mayans made up just under half of the national population, but studies suggest they remain one of the poorest and most oppressed groups in the country.

Local Projects

Not only do the bicimaquinas save local people money, time and effort, they also help some of the poorest and most vulnerable people in the area by providing work and a sense of purpose.

Women for Development in Action is a local organization that enables women to grow their own aloe plants before using the bicimaquina as a blender and producing shampoo. As Ana María Guch explains, “First, we cut the aloe, then we take off the skin, cut it into little pieces and put it in the blender. Next, we pedal!” The profits they make from selling their shampoo go towards supporting their families and funding their reforestation project.

Another organisation, Women’s Group for AZUCENA, supports women as they produce their own animal feed by using the bicimaquina as a corn degrainer. Aside from their agricultural projects, the organisation also runs Spanish literacy classes for Indigenous women, giving them a better chance of integrating into society and improving their social mobility, Maya Pedal reports on its website.

Mario Juarez, Director of Maya Pedal, also explains the environmental benefits of creating the bicimaquinas: “I believe with what we do we contribute a little to reduce the damage that as human beings we do to the planet.”

International Impact

Maya Pedal has received international acclaim for its innovative bicimaquinas – as Carlos Enrique Marroquin, Head of Maya Pedal, outlines: “We do not have to do any advertising, because the machine speaks for itself – and as such, the NGO receives volunteer engineers, translators and bike mechanics from all over the world.”

It has also made its machine designs free and available to download anywhere in the world, so that anyone can access them and learn to build and use them themselves, creating a brighter, more environmentally friendly future for everyone, starting with the Maya community in San Andrés Itzapa.

– Elsa Tarring

Elsa is based in London, UK and focuses on Good News and Global Health for The Borgen Project.

Photo: Flickr

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How Afghan Women Entrepreneurs Are Rebuilding Communities

Afghan Women EntrepreneursWhen the Taliban banned women from formal employment and public education in 2021, millions of Afghan families lost vital income sources. Amid this uncertainty, women like Frozan Ahmadzai refused to remain idle. Once a medical student, she now leads a collective of more than 50 women sewing clothes and making pickles from a Kabul basement. Their home-based work brings in around 30,000 afghani ($425) per month, providing essential support and a sense of purpose.

Women at the Frontlines of Economic Recovery

Despite Taliban restrictions, Afghan women entrepreneurs are launching small businesses and cooperatives. However, they face struggles accessing capital. According to Reuters, 41% of surveyed female entrepreneurs rely on informal loans to finance their ventures and about 70% must have a male guardian to travel to market. Nevertheless, many use tailoring, food preparation, dairy cooperatives and handicrafts to build income and resilience.

In Bamyan province, dairy entrepreneur Mahroo supports women farmers by organizing cooperatives that process milk into cheese and yogurt. She provides training and equipment, purchasing their produce at fair prices. “Many don’t even know they can sell their milk or cheese,” Mahroo explained. These cooperatives strengthen community resilience by bringing women farmers into the formal market while preserving traditional livelihoods.

Another example is the revival of underground skills schools. Led by Ideas Beyond Borders, more than 8,000 students have enrolled in covert schools across Afghanistan since 2021. The students learn essential skills like sewing, literacy and business without Taliban interference. About 38 such sites operate discreetly nationwide. These initiatives echo earlier efforts like the Golden Needle Sewing School, but now focus on empowering women to launch income-generating enterprises.

Furthermore, Kabul Sewing Circle, founded by Afghan activists including Mina Sharif, provides sewing skills and business training to women in private homes. Sharif told Teen Vogue, “They are meant to not need a thing and be prepared for their first round of business.” The project operates quietly and is funded via hawala transfers, blending economic empowerment with a supportive community.

Challenges Remain

Taliban edicts threaten this progress: they have restricted work permits, shuttered female-run NGOs and barred women’s travel and NGO employment. The U.N. estimates Afghan women’s labor force participation dropped from 11% in 2022 to about 6% in 2023.

Nonetheless, data shows a surge in women’s entrepreneurship. The Afghan Women’s Chamber of Commerce and Industry reports that female-led businesses grew significantly after 2021. These ventures increased from 600 to more than 10,000, mostly small and home-based enterprises focused on handicrafts and food products.

A Path Forward

A 2024 survey by the United Nations Development Programme (UNDP) illustrates Afghan women entrepreneurs’ struggles and resilience: 41% of more than 3,100 surveyed are in debt, with only about 5% having secured formal bank or microfinance loans. Yet 80% of these women-led businesses remain the primary income source for their families.

UNDP reports that its targeted support, combining microloans, digital literacy and market access, has benefited 75,000 women-led ventures and created 900,000 jobs, supporting more than 4.5 million Afghans.

Economic Empowerment as Resistance

Afghan women entrepreneurs like Frozan, Mahroo and the members of Durkhanum are reclaiming autonomy through enterprise. They are not just making products; they are building community resilience, preserving cultural identity and pushing back quietly against injustice. As one participant said, “This work gives us dignity.”

– Meral Ciplak

Meral is based in Edmonton, Canada and focuses on Business and New Markets for The Borgen Project.

Photo: Pixabay

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China’s Taobao Villages are Fighting Poverty through E-Commerce

taobao villagesAlibaba coined the term Taobao Village to describe villages where at least 10% of households engage in e-commerce and have online sales of at least 10 million Yuan, or $1.5 million. These villages represent a bottom-up transformation in rural China, where residents have built thriving digital enterprises that have led to the development and reduced the number of the country’s population living in poverty. What began as an informal commerce strategy quickly grew into a national phenomenon, reshaping rural economies and changing the lives of villagers. As China continues to modernize, Taobao Villages highlight how digital innovation can reduce poverty, empower marginalized groups and generate long-term economic growth.

The Rise of Taobao Villages

The first Taobao Village can be traced back to Dongfeng village in Shaji, located in Jiangsu province. With a small population of about 50,000 people, it was the first rural village to take up e-commerce on a large scale. In 2010, while researching e-commerce and the villages, Alibaba’s team was surprised to see strong e-commerce activity in the town, which emerged organically through local grassroots initiative, according to Harvard University Asia Center.

It all started with one entrepreneur, a Shaji native, who opened the first online Taobao shop in 2006, first reselling mobile phone accessories and then expanding into the furniture business. Inspired by his success, other villages opened their own e-commerce stores, expanding the network as the Taobao Villages came to life.

Seeing how e-commerce slowly allowed locals to build their businesses, Alibaba created the Taobao platform, which provided opportunities for small and newer firms to sell products and services online. Taking no cuts from online transactions and demanding no fees from the opening of online stores, the platform diffused across the country, having a transformative effect in rural China.

Taobao Villages formed in three main stages:

  1. Grassroots development, as villagers led the establishment of local businesses;
  2. Government support through the expansion of local infrastructure and e-commerce training;
  3. Further government support through subsidies for service providers and firms.

Transforming Rural Economies

With reduced entry barriers, e-commerce is an accessible means of work and income for residents with minimal capital. This has led to more inclusive economic growth in rural areas of the country, especially Western and Central China, as financial conditions improved through the creation of more jobs and the general development of the economy.

The abundance of technology platforms and collaboration among villagers is changing the lives of millions of Chinese citizens. World Bank studies show that household incomes in Taobao Villages are close to three times the average rural household income, according to Alizila. Higher income leads to higher consumption, exacerbating the need for more service and goods providers, leading to a better job market and reduced income inequality.

The Result

Often perceived as a phenomenon of high-income countries, China’s e-commerce development has shown that high levels of development are not required for a successful transition from physical to digital commerce. With a worldwide commerce transaction value that exceeds that of France, Japan, Germany, the United States and the United Kingdom combined, China proves its commitment to development and the fight against poverty.

Taobao Villages became part of a grander national strategy to fight poverty, with the State Council Office on Poverty Alleviation releasing guidelines on the expansion of e-commerce in rural areas as an essential step in November 2016. In 2021, China achieved the United Nations’ 2030 poverty reduction goals in the Agenda for Sustainable Development. In the past forty years, it has lifted more than 800 million people out of extreme poverty.

Conclusion

While more research on the topic is necessary to clarify the relationship between the dominance of e-commerce in villages and welfare improvement, many cases show that people in Taobao Villages lead better lives. Lowering the required skill threshold, digital technologies can allow less-skilled and less-educated individuals to participate in e-commerce and achieve higher living standards.

For e-commerce to help alleviate poverty, the government should develop infrastructure and offer logistical support, creating a conducive environment for change. Subsidies and workshops are additional ways in which the government can contribute to the development of e-commerce platforms and combat poverty.

– Rafaela Paquet

Rafaela is based in Montreal, Canada and focuses on Business and Technology for The Borgen Project.

Photo: Flickr

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KFC in South Africa: Fueling Economic Prosperity

KFC in South Africa: Fueling Economic Prosperity in Underdeveloped Markets Since Kentucky Fried Chicken (KFC) arrived in South Africa in 1971, it has grown into one of the most popular fast-food chains in the country, fueling economic prosperity in the region just after the financial crisis of 2008. With more than 900 stores across the country, it has created employment opportunities. The brand has created thousands of jobs, both directly through restaurant staff and indirectly via local suppliers, logistics and advertising, helping put money not only in the people of South Africa’s pockets, but also boosting the economy. For many South Africans, KFC represents more than just a quick meal; it serves as a source of employment and a pathway to financial stability.

KFC’s Economic Footprint and Social Responsibility in South Africa

Through its Add Hope initiative, KFC has raised more than R1 billion to fight hunger in South Africa, providing at least 80,000 meals daily to vulnerable children. The program partners with more than 130 nongovernmental organizations (NGOs), supporting sustainable feeding schemes and empowering communities. A 2024 impact study by the Gordon Institute of Business Science found that Add Hope contributes to improved health outcomes, school attendance and long-term socioeconomic development. It’s a model that shows how corporate social investment can be both strategic and transformative.

A Blueprint for Fueling Economic Prosperity

According to the OECD’s 2024 Emerging Markets Report, foreign direct investment (FDI) in these regions is rebounding, with Africa and Latin America showing strong potential for sustainable development in the future, especially when companies localize their operations and invest in infrastructure, education and community partnerships. Standard Bank projects that East Africa’s infrastructure boom could push its business value from $37 billion in 2024 to $54 billion in the coming years. This kind of growth opens doors for new markets and companies willing to engage deeply with local economies.  

Cultural Integration

When KFC made the jump to South Africa, it had to adapt its menu to reflect South African tastes and cultural norms, a move that helped build trust and brand loyalty. Other companies like Coca-Cola, McDonald’s and IKEA have also thrived by tailoring their products and marketing to local preferences.

Looking Ahead

As KFC continues to serve more than just food in South Africa, its story reflects a broader narrative: global brands have the potential to contribute to development while doing business. By anchoring themselves in local needs—through employment, cultural respect and social investment—companies can potentially help foster economic resilience in underdeveloped markets.

KFC has established a presence in South Africa that goes beyond corporate growth; it offers a model for supporting economic development in regions often overlooked by global expansion. When brands take similar approaches with intentionality, success can also be measured by improved livelihoods, stronger communities and more inclusive economies.

– Dylan Fly

Dylan is based in Detroit, MI, USA and focuses on Business and New Markets for The Borgen Project.

Photo: Flickr