Female Entrepreneurs in Uganda Look For Partnerships

During a two-day forum, Ugandan women seek to build partnerships and foster enterprise in the process of wealth creation.

New Vision Online
Published: January 27, 2009

Women entrepreneurs from the East African region are to meet in Kampala to find ways of creating market linkages, increase productivity and create jobs.

The Uganda Women Entrepreneurs Association, is to host the two-day forum also aimed at sharing business information, the association said in a statement.

“This would contribute to wealth creation and the growth of participating national economies and further promote women’s entrepreneurship and business initiatives.”

The forum will be held from January 30-31 under the theme: “Building synergistic networks among women entrepreneurs for business and trade” , it said.

The statement said women entrepreneurs and government officials from Kenya, Tanzania, Rwanda, Burundi, Ethiopia, Sudan and Uganda would participate.

“Each country will be represented by participants from formal and informal businesses, government, private sector and civil society organisations that support women in business and trade,” it said.

The topics to be discussed include opportunities for affordable finance and building partnerships for wealth creation through information communication technologies.

Others include creating markets for business and trade expansion for women and developing networks to support young women entrepreneurs and those in rural areas.

“Women entrepreneurs will not only learn from each others’ experiences, but will also showcase their products and their business services and literature for increased regional visibility,” it said.

The guest of honour will be the trade minister, Janet Mukwaya and the East African Community affairs minister, Eriya Kategaya, will close the meeting, the release said.

The meeting is partly sponsored by World Bank, which has helped to bring five participants from each of the six countries.

The meeting would facilitate women entrepreneurship creativity and generate innovative approaches for increased productivity, market linkages, increase incomes, and employment.

“This would contribute to wealth creation and the growth of participating national economies and further promote women’s entrepreneurship and business initiatives."

http://www.newvision.co.ug/D/8/220/669477

Bicolandia's Entrepreneurship Workshops Well-Attended

Popular workshops seek to broaden the reach of entrepreneurship activity in order to raise Bicolanos from poverty.

PhilStar.com
Published: January 30, 2009

More than 5,000 Bicolanos have already signed up to attend the free business seminars and lectures in what could be the best attended entrepreneurship caravan for Go Negosyo in the last three years.

“We did not expect the number of participants pre-registering would balloon to this level,” Joey Concepcion, founding trustee of Go Negosyo, remarked. “We are very pleased at the keen interest of Bicolanos to learn entrepreneurship direct from Go Negosyo mentors.”

Organizers from the Philippine Center for Entrepreneurship are expecting an even bigger number of attendees, including walk-in participants who would register during the actual event. The local government and the national police assured the organizers that security measures are in place to ensure the safety of the crowd and guests from Manila.

The “Go Negosyo goes Bicol Express” is co-presented by the Camarines Sur Provincial Government under Gov. LRay Villafuerte, recently recognized as one of the Most Outstanding Persons of the Year for 2008. His office has formed working committees and linked closely with various sectors and agencies in the Bicol region to broaden the reach of this entrepreneurship activity, to benefit as many Bicolanos as possible.

Villafuerte has transformed Camarines Sur into one of the top tourist destinations in the country. The Camarines Sur Water Sport is recognized as the biggest hub for wake boarding in Asia. Today, thousands of tourists come to CamSur to experience wake boarding and visit the water complex, eco village, ancient landmarks and amazing beaches.

Also part of the Go Negosyo goes Bicol Express is the dialogue between entrepreneurs and presidentiable Sen. Manny Villar Jr., who came to fame with his real life “Sipag at Tiyaga” story that has inspired many aspiring and existing entrepreneurs who wish to transcend from their humble beginnings.

“This is what Go Negosyo is all about – to change the mindset of the Filipinos and encourage them to become entrepreneurs in order to rise from poverty,” Joey said.

Go Negosyo has been promoting an optimistic and entrepreneurial culture among Filipinos with a series of successful Go Negosyo forums and expos all over the country. For 2008, it held caravans in Cebu, Baguio, Iloilo, Bulacan, and Batangas with an audience of 2,500 to 3,000 people per caravan.

“Our caravans, beginning with the Bicol Express, promise to be more informative, dynamic and inspiring as we have incorporated more learning sessions in the program,” Concepcion said.

Go Negosyo is encouraging more local leaders to be Negosyo champions who will hasten entrepreneurship development nationwide. Joey, who is also vice chair of the Micro, Small and Medium Enterprises Development (MSMED) Council, has outlined a program to partner with governors and mayors to champion the cause of Go Negosyo in their respective areas.

One of the highlights of the Go Negosyo Caravan Goes Bicol Express is also the awarding of the Most Inspiring Bicolano Entrepreneurs and Micro-Entrepreneurs.

http://www.philstar.com/Article.aspx?articleId=435916&publicationSubCategoryId=207

Exporting People: Migrant Workers Return Home

A worsening economic crisis could spur the poor to seek jobs in new lands -- or even to return home.

YaleGlobal
Joseph Chamie
Published: January 21, 2009

NEW YORK: When a nation’s population becomes far larger than its domestic economy can readily accommodate, governments can either do nothing and allow poverty to set in or they can export people. That policy has worked for many countries. In 2008, nearly $300 billion were remitted to developing countries by immigrant labor.

But the global economic crisis which is hitting the developed countries hard might generate a tsunami-like wave of migrants returning home, and falling remittances hitting the developing nations even harder.

Many developing countries have found it attractive and profitable to facilitate the departure of workers and their families. By having their citizens work abroad, sending countries have the opportunity to gain valuable foreign exchange through remittances, reduce domestic unemployment and lessen poverty levels as well as diminish the risks of civil unrest.

Yet with the widening global economic slowdown, the strategy could backfire. Living conditions in labor-exporting countries will in all likelihood worsen. As unemployment rises in the labor-importing nations, governments will cut the number of foreign-worker permits, restricting family reunion visas and offering incentives, and in some cases disincentives, for unemployed foreigners to go home, especially those immigrant workers in the country unlawfully. Moreover, given the widespread public sentiment in Europe and the United States for lower levels of immigration even before the economic downturn, elected officials in these countries will face mounting pressures to substantially reduce numbers of foreign workers.

As migrant workers return home, or at least reduce the amount of remittances sent to their families, the economies of the labor-exporting countries are likely to falter, leading to mounting domestic unemployment and political unrest. Anticipating these possible troubling outcomes, some developing countries are taking steps, such as providing money to troubled industries to prevent layoffs and launching public-information campaigns, to mitigate expected social and political consequences of the economic slowdown and reduced remittance flows.

Illustrative of this demographic-development strategy and the pitfalls are the experiences of Mexico, Morocco and the Philippines.

At the beginning of the 20th century, the populations of Mexico, Morocco and the Philippines were relatively small, approximately 14 million, 4 million and 7 million, respectively. By the year 2000, the Mexican and Moroccan populations had increased about sevenfold to 100 million and 29 million, respectively, and the Philippine population increased tenfold to 76 million. By mid-century, the populations of Mexico, Morocco and the Philippines are expected to reach 132 million, 43 million and 140 million. And without further emigration, their populations in 2050 would be even larger than projected, 152 million, 46 million and 151 million, respectively (Figure 1).

Such rapid rates of population growth combined with shortcomings in the domestic labor market has led to approximately 10 percent of the Mexican, Moroccan and the Philippine populations residing and working aboard.

Perhaps the most advanced government program to promote overseas employment is in the Philippines, where the Philippine Overseas Employment Administration established more than a quarter century ago has become an integral part of the country’s Department of Labor and Employment. Mexico also has agencies to aid citizens working abroad, such as the Program for Mexican Communities Living Abroad. In addition, the government started a program known as "3x1" – for every $1 sent from a Mexican emigrant club or association for a development project in Mexico, the government contributes $3. In a similar vein, Morocco established in 1990 a ministry to aid its citizens working abroad as well as the "Fondation Hassan II pour les Marocains Résidant à l'étranger," which fosters links with Moroccan migrants.

In 2008 these overseas workers sent home remittances amounting to $24 billion, $7 billion and $17 billion dollars, respectively. Individual monetary remittances are the second largest source of foreign currency for Mexico after oil, and remittances are a major factor in the economies of Morocco and the Philippines, representing 10 percent and 14 percent of their respective GDPs.

If large numbers of their overseas workers were to return home, the three nations would face increased domestic unemployment and related economic hardships, possibly leading to civil instability and perhaps subsequent political upheaval. In addition, without the substantial inflows of remittances, millions of Mexican, Moroccan and Philippine families who have come to rely on this income would face significant declines in their living standards, with some joining the ranks of the impoverished underclass. Falling remittances would also likely have a rippling effect throughout the economies insofar as the monies are used primarily for consumption.

More broadly speaking, while the demand for labor in the wealthy industrialized regions has been sizeable, it remains far below the enormous supply of labor in the less developed regions. The imbalance is reflected by the fact that for every person of age to work, 15 to 64 years, in the more developed regions, there are four people in the less developed regions. In particular, as the domestic markets of African countries cannot absorb such large numbers of workers, many will turn to immigrating illegally to Europe.

Moreover, this demographic imbalance is widening. In the coming decades, population increases in the developing nations are projected to greatly surpass the expected population declines among developed countries. For example, whereas Europe’s current population is projected to decline by 67 million by mid-century, Africa’s population is expected to increase by an additional 1 billion during this period. Among the youth aged 15 to 24 years old, Africa is projected to gain an additional 165 million people compared to an expected decline of 34 million in Europe.

The large and widening demographic imbalance between the regions is exacerbated by the enormous socioeconomic differences in living conditions. In many parts of the developing world, especially in Africa and South Asia., populations already confront low pay, limited health care and few career opportunities, with life in rural areas being especially harsh. In addition, personal security is often lacking or inadequate for many.

Well before the current financial crisis began, tens of millions of men and women had resorted to illegal immigration. In response to these unauthorized flows, labor-receiving countries tightened borders and policies, instituted new guidelines and procedures, e.g., photos, fingerprints, lengthy detentions, deportations and immigration bans, signed agreements and other initiatives with other countries aimed at reducing illegal immigration flows.

Some months ago, for example, the European Union financed the establishment of the Centre for Migration Information and Management in Bamako, Mali, which serves a job center, a source of advice on legal ways of settling in Europe as well as counsel on the hazards of illegal migration. More recently, the United Nations and the European Union announced a €15 million joint initiative to promote legal migration, address life-threatening illegal flows and protect migrant workers during the current economic crisis.

Nonetheless, such efforts to confront illegal migration are likely to be too little and too late. The worsening global economy, the vast and widening differences in living standards, including political instability and insecurity, and the enormous demographic imbalances between richer and poorer regions are generating powerful migration forces. These forces exert tremendous pressures on millions of men and women in the developing world, especially the youth, to emigrate – illegally if necessary – to the wealthy industrialized nations. Against these formidable push-pull migration forces, warnings, information campaigns, bilateral agreements, sanctions and even penalties are unlikely to be sufficient to deter the growing outflows of illegal migrants.

http://yaleglobal.yale.edu/display.article?id=11843

Business Fraternity Can Save the Poorest

Private sector support of local businesses is needed for the poor in developing countries, argues the Minister of the Department for International Development.

Thaindian News
Published: January 21, 2009

London (ANI): Department for International Development (DFID) Minister Mike Foster here has said that the global financial slowdown is putting millions of people in poor countries at a risk of facing greater poverty and they need opportunities that businesses can offer to them.

At an event hosted here by the Department for International Development, the Overseas Development Institute and Business Action for Africa, to launch DFID’’s Private Sector Development Strategy, Mike Foster today said that the downturn had put jobs, profits and poverty reduction at risk, and it needed a new thinking and approaches for a sustained economic growth in poor countries.

“The 90 million people, who face extreme poverty because of the global slowdown, need the opportunities that business provides,” Foster said.

“We know that the private sector is the engine of economic growth, and we know that growth drives development. The corporate social responsibility approach of the last ten years does not go far enough. Supporting development is and must be a core part of what businesses do, not an altruistic add-on,” he added.

Also present on this occasion was the Oxfam CEO Barbara Stocking who said long-term investment was vital in developing countries and key sectors such as agriculture and finance.
Barbara Stocking also said, to ensure sustainable long-term development, there needed to be a dramatic increase in low-carbon private sector development to complement investment in adaptation mechanisms.

Speaker Standard Chartered Vice Chair Ann Grant said: “The biggest contribution the private sector can make to international development is to do business successfully and responsibly. One of the consequences of the global economic downturn will be a more urgent focus on how to harness core business activity as a means of generating more sustainable and effective development outcomes.”

“However, as company resources inevitably come under pressure, we need to place an even greater emphasis on new alliances and ways of working, and build the understanding and capabilities to make this work in practice,” Grant added.

Event sponsor Andy Wales, Head of Sustainable Development at SABMiller said: “At SABMiller, with 80% of our worldwide earnings come from emerging markets, it makes sound business sense for us to contribute directly to economic growth and healthy and prosperous communities in the countries we do business in. As our new Enterprise Development report shows, a key area of focus for us is maximising our business linkages to local economies through our supply and value chains, supporting local suppliers, distributors and businesses, which delivers significant and sustainable local development impacts.”

http://www.thaindian.com/newsportal/world-news/business-fraternity-can-save-the-poorest-from-financial-slowdowns-impact-uk-minister_100145283.html

Rwanda: Virtual Human Resource Firm Comes to Country

Small and medium enterprises to have access to human resource consultant, a much-needed service for entrepreneurs seeking to improve quality and increase efficiency for cost savings.

The New Times
Eddie Mukaaya and Joseph Mudingu
Published: January 7, 2009

Kigali — NFT Consult, a Ugandan based personnel service firm has established an office in Kigali, Rwanda.

According to company officials, the firm's expansion to Rwanda is intended to take advantage of the country's growing economy with untapped human resource services.

Fiona Kirabo, the firm's Country Manager said that NFT Consult provides human resources management and expertise to businesses.

"Our focus is in the corporate and Small to Medium Enterprise (SMEs) businesses that are strategically positioning themselves to remain competitive within the local economy," she explained.

She added, "Human resource development is an organisation's most valued asset that collectively contributes to the achievement of the objectives of the business."

Kirabo continued that under this portfolio, NFT Consult offers recruiting, outsourcing and training solutions that manage Human resource functions.

However in Rwanda, NFT provides a wide range of services, including permanent, temporary and contract recruiting, organisational restructuring, individual employee assessments, training packages, team building programmes and outsourcing of company staff as well as departments.

With only two months of operation in the country, the firm provides services to Rwandatel and other corporate companies.

This comes at a time when a recent survey carried out by Private Sector Federation (PSF) on the capacity needs of the SMEs among 21 districts of Rwanda indicated that about 80 percent of the 2,100 total sampled businesses lack entrepreneurship skills such as customer care and after sales service.

This was said to be greatly affecting their competitiveness, not only on the local market but also in the region. As stated in the country's Vision 2020 one of the identified development pillars is the Human Resource Development (HRD), which lies in the empowerment of individuals through developing their skills.

The results of independent evaluation of Poverty Reduction Strategy Programme (PRSP) 1 revealed that capacity constraints constitute a major impediment for the realisation of programme's targets.

Kirabo also disclosed that NFT Consult is currently creating a database for professionals employed and seeking for employment. The company's expansion to Rwanda comes after it registered unprecedented levels of growth within the Uganda market in 2008.

Established in 2006, NFT today partners with international and local rganisations in both the public and private sectors with emphasis on the telecommunications and financial industry.

The firm focuses on raising productivity for its clients through improved quality, efficiency and cost-reduction thereby enabling their customers to concentrate on their core businesses.

http://allafrica.com/stories/printable/200901070132.html

GS Microfinance Bank Moves to Promote Agriculture in Nigeria

Lender recognizes importance of agriculture in rural areas of Nigeria and provides loans to improve farmers' yields.

Business Day
Oyibo Egwuoniso
Published: January 1, 2009

Committed to serving the rural community and promoting agricultural development in the country, GS Microfinance Bank has moved its services to a remote area on the outskirts of Lagos, granting loans to 25 piggery farmers at Oke Aro, Ogun State . Segun Adaju, managing director of the bank announced this during an annual prayer and thanksgiving service organised by the farmers last weekend.

Adaju said the bank’s movement to an interior place like Oke Aro in Ogun State was informed by its outlook of the business of microfinance banking which goes beyond the high street of Lagos to the potential customers who live where bankers would ordinarily not go.

According to him, “the importance of farming in an economy like Nigeria cannot be underestimated as it serves as the bedrock of other sectors,” adding that “the loans are meant to help the farmers improve their production and yield hence increase the output of food in the country and improve the farmers’ standards of living.

While informing those present that this is just the beginning, as it is a test case of the bank’s commitment to the farmers’ financial needs; Adaju assures that measures have been put in place to ensure that monies given are used judiciously.

Such measures, he disclosed, involves personally determining and giving the amount of loans needed by the farmers through an on ground assessment of the farms, encouraging the farmers to work in groups in order to checkmate one another on progress made and the use of special risk management techniques.

http://www.businessdayonline.com/index.php?option=com_content&view=article&id=2156:gs-microfinance-bank-moves-to-promote-agriculturen-&catid=107:microfinance&Itemid=288

Rwanda Boosts Business Competitiveness

Business Plan Competition aims to support a culture of entrepreneurship, while reducing unemployment and alleviating poverty.

The New Times
Eddie Mukaaya
Published: December 24, 2008

Kigali — The Rwanda Private Sector Federation (PSF) is targeting over 100 winners in next year's Business Plan Competition (BPC) in a concerted bid to boost their business competitiveness. This was revealed during the just concluded BPC for the year 2007-2008.

Antoine Rutayisire Manzi, the federation's Director of Entrepreneurship and Business Growth said that out of the targeted number of at least 150 entrepreneurs who will benefit from training and related components,100 of these are slated to win each year.

This is aimed at increasing the number of young entrepreneurs in Rwanda and to help boost the performance of the private sector which is considered to be a backbone of the country's economy.

Manzi explained that this upscale program has been backed by the positive impact registered out of the pioneering edition of the competition.

'The program beneficiaries have created employment and revenues to government treasury, which all contributes to the country's economic development', he added.

Statistics related to the previous 30 winners in the last two contest shows that 17 projects developed became operational which provided about 250 jobs while paying taxes to the treasury.

Manzi said that this was proof enough that the program was in tandem with efforts geared at developing a culture of entrepreneurship as the country marches towards achieving the Vision 2020.

He however cautioned that the programme will only be made sustainably successful with the support of stakeholders, since the World Bank (WB) support programme has come to an end.

The Permanent Secretary in the Ministry of Trade and Industry Antoine Ruvebana, expressed the government's support for the programme since it is aimed at developing the private sector through capacity building while at the same time providing access to finance as well as developing the entrepreneur's business acumen.

He added, 'In this way, we will move closer to our goal of ensuring that the private sector is strong enough to fight poverty, eliminate unemployment and be the driving force of our economy'.

Ruvebana was the guest of honour representing the Minister of Trade and Industry, Monique Nsanzabaganwa.

Since the its inception, the BPC has been slated as one of the Private Sector Federation's key projects. The programme has been under the support of World Bank through its Competitiveness and Enterprise Development Project (CEDP), with additional assistance coming from the government.

It mainly targets the youth and fresh graduates to address the unemployment problem and alleviate poverty in Rwanda. According to PSF officials, the programme embraces development oriented enterprises with potential of creating a positive impact on employment and income generating activities.

Initiated in 2004, the programme has seen 100 young entrepreneurs awarded capital and technical assistance for the purposes of building their businesses. This year saw 50 winners awarded up from the 30 awarded the previous years.

A guarantee fund worth US$500,000 (Rwf275.6m) was awarded to the winners. This follows the increase of funding by the World Bank from US$200,000 to US$500,000.

According to PSF, funds are provided only to the most viable entrepreneurial project proposals selected after a rigorous evaluation by Rwanda Development Bank (BRD), which also administers the funds.

The programme objective is aimed at providing capital to young and upcoming entrepreneurs with innovative and profitable business ideas.

http://allafrica.com/stories/200812240527.html

Businesses See Opportunity in Empowering Women

Support for female entrepreneurs experiences growth, joins agenda of international agencies.

The New York Times

By Elizabeth Olson

Published: December 25, 2008

Finding time away from building a new business is never easy, but Ngozi Okoli-Owube gladly set aside her daily schedule earlier this year to go back to school to learn marketing, accounting and managerial skills she had never had the time to master.

For five months, Ms. Okoli-Owube, 31, alternated her work establishing a preschool for learning-disabled children in Lagos, Nigeria, with weeklong stints at the Lagos Business School, joining a class of two dozen women to earn a certificate in entrepreneurial management.

“I have a university degree, but I did not have the training in how to run a business,” said Ms. Okoli-Owube, who had been struggling to get enough students to enroll at her “Start Right” school. “I have to learn to keep the books, how to market and to get advice from women who’ve come out the other side.”

When she saw a local newspaper advertisement last spring for 10,000 Women, a global entrepreneurship program run by Goldman Sachs, she and about 100 other women jumped at the chance to apply.

The welfare of girls and women has long been on the agenda of international agencies. The World Bank, for example, announced steps earlier this year to increase support for women entrepreneurs by channeling some $100 million in commercial credit lines to them by 2012.

But corporations have also begun to take their economic power more seriously, especially in emerging markets.

Many corporate programs employ microloans, grants or gifts to promote business education. Goldman decided to take a different approach after its research showed that per-capita income in Brazil, China, India, Russia and other emerging markets could rise by as much as 14 percent if women had better management and entrepreneurial skills.

“It’s not only philanthropy they’re after,” said Geeta Rao Gupta, president of the International Center for Research on Women. Goldman “had the idea that investment in women means a return on the gross national product of the country, and on household income.”

The company set aside $100 million over five years to bring business education to 10,000 qualified women business owners in developing countries, a commitment that remains unchanged despite banking industry turmoil.

Ms. Rao Gupta said the long-term view that Goldman and others were taking in emerging markets might help form a new economic stratum in societies where women’s participation in business traditionally had been restricted. Laws and customs in some countries, for example, bar women from opening bank accounts or require a husband’s permission to set up a company.

“This is the next step for women because it’s investing long term in business skills,” said Ms. Rao Gupta, whose institute researches and provides technical assistance for women in developing countries.

The hurdles can be high. Few women in Africa pursue a business education, often the preserve of well-to-do students heading for corporate jobs. In 50 major business schools in Africa — a continent of 900 million people — only 2,600 women were enrolled in local M.B.A. programs, Goldman’s research found.

To foster entrepreneurship and management education, business schools in developing countries are being paired with 50 universities and organizations in Europe and the United States.

Earlier this month, for example, 10,000 Women announced that the Yale School of Public Health would work with Tsinghua University to provide management and leadership education to Chinese women working in public health. Women remain at their jobs, allowing them to be with their families and apply their new skills on the spot.

“Women often don’t have two years to get an M.B.A.” said Dina H. Powell, who oversees Goldman’s initiative. Family considerations as well as cultural differences make it difficult for many women to leave their home country for study abroad.

In Cairo, about 100 women annually can earn a business certificate by participating in the program, where they learn accounting, market research, e-commerce, fund-raising and how to structure a business plan.

In countries where attending school can be dangerous for women, a different tack is taken. The Thunderbird School of Management, using Goldman funds, brings Afghan women to its Phoenix campus for five weeks of training. The bank is also financing the training of local professors to teach business courses to women in Kabul.

AT&T donated $125,000 through a foundation this year to bring women entrepreneurs from developing countries to the United States for a three-week college-level business course and a week of mentorship with American women business owners.

“This is still a small part of what we do,” said Laura Sanford, the foundation’s president. “But it’s an area that’s going to grow as it becomes more recognized that women are part of the economic landscape, and as business owners, they contribute to the economic welfare of their country.”