Micro businesses in the developing world & the value of the internet

Jul 13

What do you think of when you think Micro Business? The official definition is a business with 10 employees or fewer and very often a sole proprietor. The impact of these small businesses would be minimal right? Wrong. In Ghana, for example, household or micro-businesses tally 57 percent of the country’s total workforce.

There are barriers to starting a Micro Business, mainly access to finance, mentorship and marketing using social media. As the world becomes more connected access to the internet give budding entrepreneurs a fighting chance of survival with access to these three key areas.

This is important as micro-enterprise may play more of a role in poverty alleviation than was previously thought. Entrepreneurs in developing countries look at risk differently. Whereas Western business strategy sees a competitive threat from the well-established incumbent businesses, such a threat doesn’t exist in developing countries. And while urbanisation threatens this advantage, entrepreneurs look to the more rural areas of their country to start and grow their businesses. However, often there can be a lack of mobile data coverage to gain internet access and this slows down this vital part of the economy right across Africa.

An example of micro-enterprise at its finest is Hanan Odah, a Palestinian refugee whose husband died in the civil war in Syria. She rebuilt her micro-business, selling stationery and perfume and now helps her new community and her family of three. Despite conflict and economic collapse, Odah continues to build her brand, thanks in part to a steely will and in part to micro-finance programs that loan small amounts of money at low interest rates gained through the use of a mobile phone and a connection to the internet.

How can you help entrepreneurs in the developing world? Connectivity is a great place to start. Sponsor the connection of an entrepreneur and help their business grow.