Description
"Rural and Women Entrepreneurship (RWE) Development Programme", which is managed by the Small and Medium Enterprises Branch. As a core contribution of UNIDO to poverty reduction, the programme supports rural people and women in their aspirations for entrepreneurial initiatives.
UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
ec onomy envi r onment empl oyment
Developing rural and women
entrepreneurship
a path out of poverty
a path out of poverty
Developing rural and women
entrepreneurship
UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
Vienna, 2003
The designations employed and the presentation of material in this publication does not imply
the expression of any opinion whatsoever on the part of the Secretariat of the United Nations
Industrial Development Organization concerning the legal status of any country, territory, city
or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. The
opinions, figures and estimates set forth are the responsibility of the authors and should not
necessarily be considered as reflecting the views or carrying endorsement of UNIDO. The des-
ignations, “developed” and “developing” economies are intended for statistical convenience and
do not necessarily express a judgement about the stage reached by a particular country or
area in the development process. Mention of firm names or commercial products does not
imply endorsement by UNIDO.
This document has not been formally edited.
CONTENTS
Introduction 5
1. CHALLENGES 6
Poverty: No exit? 7
Millenium development goals 7
The neglect of rural development: a precarious imbalance 7
Gender inequality: impediment to growth and poverty reduction 8
Building a “bottom-up growth strategy” 9
2. RURAL AND WOMEN ENTREPRENEURSHIP DEVELOPMENT 11
Objective 12
Approach 12
Expected impact 12
Main services and methodologies 13
UNIDO programme principles 16
3. PROJECT EXPERIENCES 17
Mozambique: streamlining regulatory business environment in the provinces 18
Uganda: private sector assists private sector 19
Central America: linking private sector associations, NGOs and universities 21
Pacific Islands: promoting entrepreneurship to create income and
employment opportunities 23
Rwanda: strengthening the role of women entrepreneurs in a
post conflict situation 24
Uganda: preparing youth for entrepreneurship – curriculum development 26
Viet Nam: establishing a “traditional craft village” for export promotion 27
Morocco: promoting productivity improvements in rural women’s businesses 28
Kenya: socio-economic empowerment of women entrepreneurs 30
People living in rural peripheries,
especially women, shoulder the burden
of the worlds’ poverty.
This brochure describes UNIDO’s “Rural and
Women Entrepreneurship (RWE) Development
Programme”, which is managed by the Small
and Medium Enterprises Branch. As a core
contribution of UNIDO to poverty reduction,
the programme supports rural people and
women in their aspirations for entrepreneurial
initiatives.
People living in the rural peripheries, and espe-
cially women, shoulder the burden of the world’s
poverty, particularly in the Least Developed
Countries and sub-Saharan Africa. They have
been deprived for too long from participating
in the opportunities and benefits of economic
growth and globalization.
Reducing urban-rural disparities and gender
inequalities is a crucial element for any poverty
reduction strategy. Mobilizing the potential
productivity of rural people and particularly of
women is indispensable to achieve the resilient
economic growth that will pull people above the
poverty line.
Therefore, the RWE Programme aims at pro-
moting a conducive business environment and
at building institutional and human capacities
that will encourage and support the entrepre-
neurial initiatives of rural people and women.
Part 1 of this brochure describes the challenges
to be addressed, followed by a description of
UNIDO’s approach, services and methodologies for
rural and women entrepreneurship development
in Part 2. Project experiences are presented in Part
3, illustrating the results UNIDO has achieved
through its technical cooperation projects.
5
INTRODUCTION
6
1. Challenges
Poverty: no exit?
The widening gap between rich and poor world-
wide is a major threat to global security and
economic integration. About half of the planet’s
population are poor, living on less than two
dollars a day. Poverty is a vicious circle, being
both the major cause and the effect of a situa-
tion, in which no opportunities seem to exist for
the poor to help themselves.
Millennium development
goals
Eradicating poverty is a shared objective of
the international community. The Millennium
Declaration of the United Nations stipulates
the target of halving the proportion of the
world’s people whose income is less than one
dollar a day by the year 2015. Another millen-
nium development goal is to promote gender
equality and empower women as effective ways
to combat poverty, hunger and disease and to
stimulate development that is truly sustainable.
Efforts are underway to put in place macro-
economic, structural and social policies and pro-
grammes to promote growth and reduce poverty.
To that end, Governments in 45 countries* have
prepared or are preparing Poverty Reduction
Strategy Papers (PRSP) in a participatory process
involving civil society and development partners.
They try to understand and analyse some fun-
damental questions: Who are the poor? Where
do they live? What are the main barriers for
them to move out of poverty? — The answers
can help setting priorities for policy choice.
The neglect of rural
development: a precarious
imbalance
A staggering 75 per cent of the world’s poor live
in rural areas. And yet, resources and policies
continue to be biased in favour of urban devel-
opment. An imbalance in development is the
consequence, with detrimental effects on both
rural and urban people.
With rural areas not able to provide enough
opportunities for people to sustain their lives,
the burden of supporting the poor and rural
population falls increasingly upon cities. The
growing number of rural poor seeking work
in overcrowded cities stretch social and physical
infrastructure and economic opportunities in the
urban areas beyond their capacity.
7
• 1.2 billion people live on less than US$ 1 per day
• 2.8 billion people live on less than US$ 2 per day
• 75 per cent of the poor live in rural areas
• 60 per cent of the world’s poor are women and girls
• The average income in the 20 richest countries is 37 times higher than in the 20
poorest countries
• Higher inequality tends to retard growth in poor countries and encourage growth
in richer places
Rural development and gender
equality are key elements of
strategies to reduce poverty and
create income and employment
opportunities.
* As of February 2003.
On the other hand, the migration of rural men
to urban areas leaves unbalanced family struc-
tures behind, with women, children and elderly
expecting remittances.
Most of the rural population depends, directly
and indirectly, on small-scale food crop agricul-
ture, fishery, pastoral animal husbandry or rural
wage labour associated with plantations and
ranches, and ancillary activities linked to the
economies of the rural life and rural townships.
Many rural families need to diversify their
sources of income and employment in view
of increasingly smaller parcels of land, low
agricultural productivity, volatile weather con-
ditions and soil erosion.
The rural non-farm economy plays an important
role for wealth creation and well-being across
countries. For example, small rural households
with fewer than 0.5 hectares earn over half of
their total income from non-farm sources. The
composition is generally one-third manufactur-
ing, one-third commerce and services with min-
ing and construction accounting for the rest.
Gender inequality:
impediment to growth
and poverty reduction
Women and girls constitute three-fifths of the
world’s poor. Their poverty level is worse than
that of men as clear gender disparities in edu-
cation, employment opportunities and decision-
making power exist.
A large number of women are mainly engaged in
subsistence agriculture as well as in micro and
small-scale enterprises (MSE). In most of the
developing countries, particularly in Africa,
women constitute 70-80 per cent of the total
agricultural labour force and they account for
over 80 per cent of food production. It is not
surprising therefore to find many women engaged
in food processing, weaving, personal services,
beverage preparation, and selling of snack foods.
In the MSE sector worldwide, women make up
one-quarter to one-third of the total business
population and in manufacturing they constitute
one-third of the global labour force.
In addition to their economic and income-gener-
ating activities, women assume multi-faceted roles
in society, i.e. as breadwinner of a family, unpaid
family workers, service providers in the communi-
ties and mother/care-taker of the family.
8
A poverty-reducing growth strategy
should aim at the creation of a
complex and diversified economic
structure and should include the
development of non-farm econo-
mic activities and the facilitation of
the transition of informal activities
to the formal growth sector.
A rural development programme
should combine infrastructure
development, education and health
services, investment in agriculture,
and the promotion of rural non-
farm activities, in which women
and rural population can engage.
Need to diversify economic opportunities
for a better life
In spite of their important contributions to
socio-economic development, women suffer
from various constraints, which inhibit them
from fully realizing their potential for develop-
ment. Cultural values and social norms hinder
the equal participation of women in society. One
of the major constraints women face as entre-
preneurs is the unequal access to productive
resources and services, including finance and
skill upgrading opportunities. Some legal provi-
sions and legislative systems make it difficult for
women to take initiatives for business develop-
ment. Furthermore, their reproductive role in the
family and the community puts women in a dis-
advantaged position to engage in entrepre-
neurial activities.
To respond to the needs of women to materialize
their economic potential and thereby to improve
their standard of living, it is necessary to design
programmes by applying a mainstreaming strat-
egy. This requires devising measures to integrate
women as decision-makers, participants and
beneficiaries in all relevant development activi-
ties, irrespective of the sector or type of
activity. It is also necessary to address the total-
ity of problems women face as entrepreneurs, due
to the wide spectrum of elements affecting the
equitable participation of women in development.
A plan or strategy must be designed and imple-
mented in close collaboration with various
development partners in different specialized
areas, notably: education, health, human rights as
well as environment and energy.
Building a “bottom-up
growth strategy”
It is necessary to take a multi-dimensional per-
spective on poverty reduction. This includes
“bottom-up growth strategies” to encourage the
broad-based rise of entrepreneurial initiatives.
The benefits of economic growth generated by
a handful of modern industries do not neces-
sarily trickle down to those business sectors
where the largest proportion of the population
is engaged, and not at an acceptable pace.
Most Least Developed Countries (LDCs) and sub-
Saharan African countries are characterized by
a polarized industrial system of a handful of
large enterprises—owned by either the state,
foreign investors or a few rich local entrepre-
neurs—and a large number of micro enterpris-
es, mostly in the informal sector. Only a few of
these businesses have the capacities to respond
to the emerging opportunities from the export
sector and the changing international economic
regime.
9
Gender equality is a prerequisite
for poverty reduction because of
the contribution women make and
the role they play in society and
in the economic well-being of
the family and communities.
Be it in rural or urban areas, be it
in micro or medium and large
enterprises, women must be an
integral part of development,
not only as beneficiaries,
but also as decision–makers and
agents of change.
Woman on the way to a maize mill
Poverty-reducing growth strategies need to
diminish policy and regulatory obstacles that dis-
courage local entrepreneurial initiatives and to
improve the access to skill development opportu-
nities that strengthen entrepreneurial capabilities.
The “bottom-up growth strategy” focuses on
the transformation and diversification of micro-
and small-scale enterprises to growth-oriented
activities and on increasing the productive
capacity in order to enable them to participate
in the mainstream economy of the nation.
This strategy is not a welfare programme, but a
necessary condition for attaining sustainable eco-
nomic growth by unleashing under-utilized pro-
ductivity potentials. Thus, the aim of a “bottom
up economic growth strategy” is to help poor peo-
ple to grow out of the poverty trap. Such a strat-
egy complements and supports the growth of a
modern and export-oriented sector.
10
Elements of a “bottom-up growth strategy” to enable rural people and
women to participate in the mainstream economy are:
• The creation of an enabling business regulatory environment, in which rural
and women entrepreneurs can fulfil their own initiatives for advancement;
• The strengthening of entrepreneurial capabilities; and
• The promotion of collective self-help efforts of small-scale entrepreneurs.
People are the asset of the future
2. Rural and women
entrepreneurship development
Objective
The aim of UNIDO’s Rural and Women Entre-
preneurship (RWE) Programme is to contribute
to poverty reduction through entrepreneurship
development—with a focus on rural develop-
ment and gender equality.
The essential elements in this Programme are to
create a business environment that encourages
the initiatives of rural and women entrepreneurs
and to enhance the human and institutional
capacities required to foster entrepreneurial
dynamism and enhance productivity.
Approach
Business opportunities are not created by exter-
nal intervention—they arise from markets and
entrepreneurial capabilities. The issue is to
enable rural and women entrepreneurs to take
advantage of market opportunities.
Micro- and small-scale enterprises (MSE) are
affordable and manageable by rural people. They
create a large number of non-farm employment
and income opportunities in relatively poorly
developed areas and require small capital and
little sophisticated managerial and technical
skills. MSEs are also the seedbeds for a broad
development of the private sector throughout
the country, forming the foundation for the
national economy and social development at the
grassroots.
Individual entrepreneurs are a driving force for
competitive MSEs as a growth base. However,
the policy and institutional framework needs to
be conducive to encouraging entrepreneurial
initiatives. Human capabilities and the right
institutional framework are necessary conditions
for entrepreneurship to flourish, particularly in
rural areas.
The RWE Programme therefore focuses on:
• Strengthening the public administration to
make the regulatory and administrative envi-
ronment more conducive for rural and
women entrepreneurs.
• Human resource development for increased
competitive entrepreneurship, technology
absorbing capacities and women’s control
over asset management.
• Development of the policy advocacy and the
collective self-help capacities of rural and
women entrepreneurs.
12
EXPECTED IMPACT
The RWE Programme aims at:
• Improved business performance
of MSEs owned by rural and
women entrepreneurs;
• Increased transformation of
MSEs from the informal to the
formal sector;
• Increased number of start-ups.
Leading to: Increased income and
employment opportunities in rural
areas and particularly for women.
Main services and
methodologies
Business and regulatory environment
for women and rural entrepreneurs
Compliance with complex regulatory require-
ments and dealing with bureaucratic webs
are relatively more expensive for rural entre-
preneurs than for urban and larger enterprises.
Cumbersome and centralized bureaucracies
often lead to lengthy licensing processes and
costly operations of rural businesses. They may
thus discourage entrepreneurial activity.
The public administration in rural areas has
relatively weak capacities to implement policies
and to maintain conducive framework condi-
tions for entrepreneurial initiatives. The action
of local authorities is often based on a vague
understanding of what to regulate and how to
regulate. It can result in arbitrary exercise of
regulations.
Rural and women entrepreneurs’ understanding
of regulations as well as their capacity to iden-
tify unjustified application of the regulations are
weak. Institutions and agents to arbitrate dis-
putes are scarce in rural areas.
For women entrepreneurs, the constraints are
often exacerbated by laws and regulations that
explicitly discriminate against them. Further-
more, the gender-sensitivity of many officials in
rural areas tends to be more heavily influenced
by the local tradition than in urban areas.
The RWE Programme supports strongly commit-
ted national and local leaders that want to
address the above issues of the regulatory busi-
ness environment. Depending on the analysis of
the constraints emanating from the regulatory
and administrative framework, there are typi-
cally two main issues to be addressed:
• The need to improve legal texts;
• The need to improve the implementation of
existing regulations.
13
METHODOLOGIES AND TOOLS
For the diagnostic study of the regulatory and administrative constraints,
UNIDO projects carry out surveys among the business community and conduct studies
to analyse the impact of regulations and their implementation on MSEs in areas such
as business licensing, allocation of business land, taxation, inspections or trade
regulations.
The findings result in a participatory process to develop remedial action plans by
the national and local partners to address the identified issues. They may for example
include proposals for streamlining procedures, establishing one-stop-shops to reduce
the number of institutions to be contacted by entrepreneurs seeking business licenses,
the development of databases that facilitate and speed up licensing processes, institu-
tionalized dissemination of information on regulations, etc. To facilitate the imple-
mentation of the proposed measures, UNIDO provides technical advice, customized
methodologies and training programmes for public administrators.
To complement these measures, the RWE Programme includes entrepreneurial
awareness programmes for rural and women entrepreneurs on their rights and
obligations by using information seminars, leaflets, radio programmes, etc.
Business development services for rural
and women entrepreneurs
Specialized business development institutions
are often not available or their services are not
affordable for rural entrepreneurs. For women
entrepreneurs, specialized support institutions
hardly exist to cater to their specific needs.
Thus, entrepreneurial and technical training,
advisory and information programmes often
have to be carried out within a non-conven-
tional set-up.
As a guiding principle, the RWE Programme
seeks to work with existing organizations on
the basis of an assessment of their absorptive
capacities and initiatives. Through training of
trainers, advisors and managerial staff as well
as the development of practical and effective
methodologies and tools, projects strengthen
the technical and managerial capabilities of the
partner institutions to deliver specialized serv-
ices to women and rural entrepreneurs.
The programmes for entrepreneurship training,
small industry advisory services, women entre-
preneurship development and technical skills
upgrading are developed by carefully tailoring
UNIDO’s methodologies to fit to the needs and
the absorption capacity of the entrepreneurs
and the support institutions. These services will
help entrepreneurs to improve their production
processes and management techniques and
support their initiatives to start up new
enterprises.
The capacity building also addresses institutio-
nal management improvements to help the part-
ner institutions in the continuous development
of appropriate service programmes, their deliv-
ery and financial strategies to sustain the serv-
ices, e.g. by charging fees or reducing costs of
service delivery. Operations manuals and insti-
tutional business plans are developed jointly
with the partner institutions. Building networks
of cooperating institutions is an important
strategy for developing service institutions in
rural settings.
14
METHODOLOGIES AND TOOLS
For entrepreneurship training, exist-
ing UNIDO methodologies and materi-
als—such as trainer’s guides, handouts
for participants or software pro-
grammes—are adapted to the specific
project conditions. Topics can include
marketing surveys, production process
management, business plans, costing
and pricing strategies or organizing
handicraft production for export
markets. Methods range from business
opportunity seminars to full entrepre-
neurship training courses. Entrepreneur-
ship development curricula in
secondary and vocational schools are
also used.
Specific methodologies and manuals
for women entrepreneurship
development (WED) have been pre-
pared such as a training programme
for women entrepreneurs in food pro-
cessing, training modules on team-
work, negotiating or the monitoring
and evaluation of WED projects.
Women entrepreneurship training pro-
grammes also emphasize confidence
building for managing own assets.
Small industry advisory services
are developed through capacity build-
ing on such subjects as industrial
extension methods, organizing collec-
tive self-help groups or community-
based projects, village outsourcing or
the development of entrepreneur-to-
entrepreneur advisory services.
Technical skills upgrading modules in
specific subsectors are applied in co-
operation with UNIDO’s subsector and
environmental specialists and address
topics such as food and fish process-
ing, textile and wood industries or
waste management.
Collective self-help capacities and
advocacy roles
Supporting the initiatives of groups, private sector
associations and communities to develop their self-
help programmes is important in view of scarce
service institutions in rural areas and weak advo-
cacy capacity of rural and women entrepreneurs.
Self-help groups empower micro- and small
entrepreneurs to identify their needs, plan and
implement their own projects, share the bene-
fits of their collective efforts and evaluate their
programmes and projects.
Rural and women entrepreneurs can establish
common projects such as:
• Collective marketing;
• Bulk purchasing;
• Common facilities, e.g. to share machinery
and equipment, a warehouse or a vehicle or
office facilities;
• Group-owned enterprises;
• Group lending;
• Training programmes.
15
METHODOLOGIES AND TOOLS
UNIDO has developed a series of capacity building programmes to promote
advocacy roles and collective self-help initiatives, which have been implemented
in a number of countries.
A training programme on the methodologies for organizing, facilitating and
assisting self-help entrepreneurial groups helps business advisers, MSI develop-
ment workers and staff of associations to promote and implement this approach.
The training programme consists of a Trainer’s Guide and reference materials in
three modules: (a) organizing self-help entrepreneurial groups, (b) developing group
projects and (c) motivating and strengthening entrepreneurial groups. For associa-
tions, these materials are complemented by a specific training programme on
managing an association.
In many village settings, reducing both time and energy use for staple-food pro-
cessing is of high concern to the rural women. UNIDO has developed together with
IFAD and UNDP the concept of a Multipurpose Village Workshop (MVW), which
connects a multiple set of equipment for milling, dehulling, oil pressing, etc., to
one motor in order to optimize the use of available equipment and energy. It is
managed by a self-help community group and local small business circles. The MVW
thus helps women to increase and diversify their food production as well as to
improve the quality of their products and their productivity.
Community-Production Centres (CPCs) are a combination of an organized
apprenticeship scheme and a small-scale industrial village workshop. The basic merit
is to share production facilities such as premises, equipment, storage room, tools,
power, communication, management, etc. A CPC could combine the production
with a service function whereby the CPC would organize the procurement of raw
material and the collective sale of the products. An important element for the
sustaining success of CPCs is a strong traditional and local leadership, supported by
the community members.
By organizing themselves in groups and asso-
ciations, rural and women entrepreneurs can
effectively voice their specific concerns and
advocate changes through formal policy mak-
ing processes. This is important since their
capacity to participate in local and national pol-
icy making is often limited, and their interests
are often insufficiently represented by urban
and male dominated lobbying groups.
Getting started as a group or an association,
planning and implementing common projects
and keeping the motivation going are the crit-
ical issues for building capacities of the entre-
preneurial groups and their advisors.
In communities with a strong traditional leadership
and organization, collective projects can be under-
taken by community structures and organizations.
16
UNIDO PROGRAMME PRINCIPLES
Strategic focus: The focus is on LDCs, sub-Saharan Africa and countries with special
needs, such as post-crisis zones or countries with high inequality leading to pockets of
poverty.
People-centred: The approach is people-centred and therefore starts with the characteri-
zation of the disadvantaged target population groups: women, rural population, youth,
ethnic groups and refugees and displaced people. The factors impeding their inclusion into
economic mainstream and growth activities are analysed with participatory approaches to
identify the entry points of the technical assistance.
Root-cause analysis: A comprehensive analysis of the specific root causes of poverty,
inequality and conflicts forms the basis for developing technical cooperation projects in
support of “bottom-up growth strategies”.
Gender sensitive: A specific analysis is required to understand the causes of gender
inequalities and possible discriminatory effects. The programme uses both a targeting as
well as a mainstreaming approach, depending on the analysis.
Locally specific: It needs to be understood that no blueprint design for rural and women
entrepreneurship development projects is possible. Existing methodologies have to be care-
fully selected and adjusted according to local conditions and complexities.
Asset-based: Rather than pursuing a needs-based approach, the programme tries to build
on existing assets, abilities and initiatives of the poor and aims to strengthen them.
Analysis of absorptive capacities: Projects are designed on the basis of the capacity of
partner institutions to absorb the technical assistance. Factors to be assessed include:
visions of the leadership on development objectives and their commitment to self-improve-
ment, track record of management, technical capabilities of the staff, financial sources and
fund raising capabilities for recurrent expenditures and capital investment, existing facili-
ties, track record of client satisfaction.
Sustainability: The technical assistance aims at building up lasting capabilities of the
institutions to operate sustainable service delivery on their own after the project assistance
is over. Dimensions of sustainability are of financial, technical and managerial nature.
Open architecture: Strategic alliances for project formulation and implementation are
being sought in order to integrate the projects with Government programmes as well as
other operators of similar projects at the local level, and to create synergies for greater
impact.
Impact measurement: Performance and impact are analysed periodically with the stake-
holders and, to the extent possible, quantitative impact indicators are applied.
Learning lessons: The continuous monitoring of experiences of UNIDO and others and
the feeding back of lessons learned into the project design and implementation in the
field of rural and women entrepreneurship development is being undertaken to ensure
high quality of the technical assistance projects and to contribute to global forum
debates.
3. Project experiences
Issue
Administrative barriers to investment and to the
legalization of enterprises have significant
adverse effects on business growth by discour-
aging the initiatives of entrepreneurs. Micro-
and small enterprises are disproportionately
affected.
In Mozambique, obstacles include bureaucratic
procedures, lack of accurate information, costly
and time-consuming customs procedures. Delays
and unnecessary financial requirements in obtain-
ing business licences arise from inefficient inter-
departmental coordination among the different
government bodies. On average, it takes the six
or more public institutions involved in the process
four months to legalize economic activities.
Strategy
As a measure to overcome the administrative
obstacles to investors and entrepreneurs, the
Provincial Government of Zambézia, in cooper-
ation with UNIDO, created the Balcão Único
(one-stop shop) in Quélimane. Balcão Único (BU)
facilitates correct and efficient applications of
rules and regulations in order to stimulate pri-
vate sector-led growth. BU ensures coordination
among different provincial departments on
licensing new businesses.
BU aims to speed up review and approval
procedures for licensing and to disseminate
information on regulatory requirements and
incentive programmes. BU enables the entrepre-
neur to treat all paperwork at one location
instead of visiting several government offices
and to make only officially required fee pay-
ments in a transparent manner. A continuous
monitoring and accompanying process follows
until the decision is made and the licence is
handed over to the entrepreneur. Thus, while the
actual processing of applications is not done by
BU itself, it guarantees the proper and trans-
parent application of existing legal frameworks.
This is achieved by accepting payments only by
way of bank deposits and by offering relevant
information on fees and clients’ rights and obli-
gations. BU ensures an efficient monitoring of
the process by using routing slips to register the
administrative time needed and by means of its
database. The database provides statistical infor-
mation necessary for the planning of develop-
ment policies by the public authorities.
The Office of the Provincial Governor adminis-
ters the BU and the provincial government
budget covers all the operational costs.
Results
• Balcão Único (BU) has been successful in its
activities so far and has been praised both
by the business community and by the
provincial government.
18
MOZAMBIQUE:
Streamlining regulatory business
environment in the provinces
Staff of the Balcão Unico explaining their
work to visitors
UGANDA:
Private sector assists private sector
Issue
Entrepreneurs in rural areas suffer from a lack
of training and advisory services that would
allow them to upgrade their managerial and
technical skills and solve immediate production
problems, thus improving productivity and
increasing profitability.
The government often does not have a sufficient
budget to finance the costs of training and
advisory institutions. The technicians of public
institutions may not have the necessary private-
sector orientation and business spirit to provide
practical advice to entrepreneurs.
In Uganda, where more than 70 per cent of
enterprises employ less than 20 people, micro-
and small enterprises play an important role
in the economic and social life of the majority
of citizens. However, the growth and the
competitiveness of this sector are hampered
by a lack of managerial and technical skills,
weak infrastructure, difficulties in accessing
loans, and complicated company registration
processes.
Strategy
One of UNIDO’s activities focuses on improving
the access of small entrepreneurs in rural dis-
tricts to advisory services and training. The pro-
ject has introduced the concept of a Master
Craftsmen Programme (MCP) in six districts of
Uganda. It is a self-sustaining, demand-driven
and private sector-led system of assistance to
entrepreneurs, coordinated by the Uganda
Small-Scale Industries Association (USSIA).
About 100 small-industry entrepreneurs have
been selected and trained to provide fee-based
services to other micro and small-scale
industrial entrepreneurs in their districts. The
six districts are Masaka, Mbarara, Kabarole,
Mubende, Mbale and Lira.
• From its inauguration in June 2001 until
August 2002, BU handled 143 applications
from enterprises, out of which 79 received
licences. An estimated 35 of them were oper-
ational by August 2002, representing a new
source of tax revenue for the public sector.
The processing time has been reduced to 25
days on average.
• Entrepreneurs find that BU has improved
processing time, increased transparency, effi-
ciency and professionalism of the licensing
process, uniform and consistent interpreta-
tion and application of regulations, reliable
information on procedures and consistent
charges of fees as determined by law.
• The overall effect on employment will
only be noticeable in the long run, as a
derivative of the improvement of entre-
preneurs’ and investors’ perception of the
provinces’ regulatory environment as well
as other factors affecting the business
climate. Nevertheless, an estimated 200 jobs
have so far been created in the formal
sector.
19
Essential in this strategy are the dynamics of
communal obligations as the driving force,
which work in a way that business people in the
same business community help each other.
However, clients were not used to paying fees
for training and advisory services, sometimes
affected by heavily donor-subsidized services.
The UNIDO project has not given any financial
incentives or subsidies to the MCP, but helped
in the conceptual development, preparation of
methodologies and manuals, training of advisors
and campaigning for the fee-based services.
The MCP services focus on metalworking, electri-
cal and electronics engineering, food processing,
textile, leather and woodworking. The major func-
tions are industrial advisory services, training in
business and technical skills upgrading, encourag-
ing the formation of entrepreneurial self-help
groups, and secretarial services at the association’s
district offices.
Results
• A total of 100 entrepreneurs and skilled
technicians have been trained as MCP advi-
sors and are operating in six districts.
• Over 750 entrepreneurs in the six districts
improved their managerial and technical skills.
• Training manuals and operational manuals
for the MCP are being used.
• Neighbouring districts have requested the
services of the MCP advisors.
• USSIA district officers have been trained in
the management of the association and the
coordination between the national and the
district offices has improved.
• A network of NGOs cooperating with MCP
has been expanding.
20
MCP advisor in a metal workshop
Hussein B. has a maize milling business in the Western Ugandan town of Fort Portal. He started
it after his farm and transport business collapsed when his property was looted during the war
in 1985. Hussein has 15 years of experience in milling and he supplies the flour to schools and
government institutions. However, all along he had not seen his business grow as hoped and
had been thinking that his workers may have been cheating him on his business. Electricity costs
were taking all his earnings. One of the MCP advisors, Ozunga, invited him to attend a skills
upgrading training in milling techniques and maintenance, but Hussein was hesitant and asked
what new things he could learn. However, he decided to give it a try and paid 64,000 shillings.
Hussein offered to use his mill as a venue for the practical training. At the end of the training
programme, Hussein realised that his mill was loosing 8 kg of flour for every 100 kg: the whole
factory was full of flour on the walls, ceiling and floor. He usually milled 30 bags a day, which
meant a loss of 192,000 shillings per day. Hussein made the necessary modifications in his maize
mill, which he had learnt from the MCP training. Today, the lost flour at his mill has been
reduced to only 1 kg for every 100 kg. In four months he managed to save enough money to
buy a rice huller to add to his business.
Issue
Promoting women’s participation in the produc-
tive sector is a major challenge in Central
American communities. In particular, women
with a low level of training and education, and
those being alone at the head of the family need
to organize themselves for productivity gains to
increase their income. There is a pressing need
for them to be able to improve their market
access and grow their businesses competitively.
For young persons, a major challenge is the
development of an entrepreneurial culture for
enterprise and job creation, while up-grading
their technical skills at the same time.
The main issue was to find effective ways
through the establishment and networking of
business support programmes to bring women
and young entrepreneurs into the mainstream of
entrepreneurial ventures and private sector
development.
CENTRAL AMERICA:
Linking private sector associations, NGOs
and universities
21
A woman MCP advisor in a carpentry shop
Adolf H. is a young and dynamic businessman in his twenties. He owns a carpentry workshop
in Mubende, 200 kilometres west of Kampala. His equipment mostly consists of hand tools and
one bench. Adolf used to complain about not having enough customers, and consequently low
sales. When he attended a MCP workshop on carpentry he realized that his problem was not
the lack of customers but the quality of his work. He approached Mzee, one of the MCP
advisors in the district. Mzee reviewed the work of Adolf and, during two weeks at Adolf's own
workshop, gave him hands-on advice to improve the product design, material selection, surface
preparation, joints etc. Before the training, Adolf used to sell his Johnny set at 120,000 to
150,000 shillings. The set they worked on during the training was sold for 450,000 shillings.
Adolf paid for the training fee of 35,000 shillings at the USSIA office. All his other products
are now fetching about 20-30 per cent more than before. He has managed to attract orders
from a coffee factory that used to buy furniture from Kampala. His average sales have multiplied
five-fold. He has now asked Mzee to give him more training.
Strategy
The project has been assisting private sector
institutions, universities and NGOs in Guatemala,
Honduras and Nicaragua to build their organi-
zational capacities for improved delivery of spe-
cialized business support services for women
from the poorer segments of society who man-
age small food-processing enterprises and their
employees.
The institutional capacities of counterpart agen-
cies and their local collaborating agencies are
strengthened through training, developing and
adapting methodologies and technical advice to
address the demand for managerial and techni-
cal services required by women entrepreneurs.
The women targeted are those that have some
basic experience in agro-food businesses and
production, and that need assistance in business
development and growth. Women entrepreneurs
are guided to develop commercial attitudes and
a strong production orientation, as this is often
a major constraint that has been observed in
these projects.
For youth entrepreneurship development, the
project has taken a catalytic approach to address
the issue of unemployment of school leavers and
graduates with a technical background in the
food-processing sector. The project facilitated
their access to technical knowledge, credit link-
ages and practical business experiences to help
them shape their ideas for enterprise develop-
ment. While focusing on skill training to deve-
lop the potential of young entrepreneurs in the
agro-food sector, it was found to be essential
that this should be complemented by preparing
business plans to facilitate credit requests and
approval.
A basis for success of the project are the strong
linkages established between the private sector
associations, local training institutions and uni-
versities in the three countries. They all cooper-
ate to offer the integrated service package for
the young potential entrepreneurs.
The programmes are developing synergies with
other UNIDO programmes currently being exe-
cuted in the three countries, as well as with
entrepreneurship related programmes imple-
mented by other development cooperation
agencies. There are also a number of positive
synergies and benefits developed between the
two programmes in Central America, i.e. in
organizing internships, marketing surveys and
business ventures.
Results
• More than 460 women entrepreneurs
trained, with approximately 80 employees.
• Some 22 groups of women entrepreneurs
assisted to set up production facilities.
• A total of 138 facilitators trained, out of
which 31 are actively working with women
entrepreneurs and groups.
• Agreements of six NGOs obtained to act as
credit facilitators.
• Some 75 rural and urban young entrepre-
neurs trained, with approximately 40 per
cent setting up an enterprise.
22
Food processing as a business opportunity
Issue
In some countries, entrepreneurial spirit and ini-
tiatives are very weakly developed due to a lack
of relevant skills and knowledge, little exposure
to the outside as well as for historic and cul-
tural reasons.
In several Pacific island countries, this is
particularly true in the context of economies,
which are characterized by agricultural subsis-
tence activities or a preponderant public sector.
Furthermore, traditional values emphasize com-
munal approaches rather than individualistic
entrepreneurship. Policy and institutional set-
tings are not conducive to entrepreneurial ini-
tiatives. The result of all these factors is a
weakly developed private sector and acute
shortages of income and employment opportu-
nities.
Strategy
UNIDO advised and managed projects in the
Federated States of Micronesia and in Solomon
Islands, having as a common element the aim
to promote a stronger private entrepreneurial
base. The focus was on developing entrepre-
neurship through a more favourable policy and
administrative framework, strengthening support
service capacities and fostering collective self-
help initiatives of groups of entrepreneurs and
communities.
With the establishment of Micronesian
Entrepreneur Development Centres (MEDC) in
four states (Pohnpei, Chuuk, Kosrae and Yap), the
project built a network of institutions offering
training programmes, business and technical
advisory services and business information to the
island entrepreneurs. It also contributed to
improve legislation to be more conducive for
enterprises to start, grow and diversify. UNIDO
prepared entrepreneurship development method-
ologies and training manuals, which were later
also successfully adapted in other countries, and
trained about 80 trainers, business advisors and
other staff of the cooperating institutions. More
than 1,600 potential and existing entrepreneurs
benefited from MEDC assistance.
In the Solomon Islands, the project contributed
to address the acute shortage of job opportuni-
ties in rural areas where people derive their
income mostly from a mix of subsistence and
commercial activities and subsequent migration
from the provinces to the capital. It promoted
the development of small-scale and cottage
industries in rural communities in Malaita,
Makira, Isabel and the Western Provinces as well
as in Guadalcanal and Honiara.
For training activities, the project staff adapted
and developed UNIDO training materials for
entrepreneurship development and technical
skills training. Ninety staff of various institutions
PACIFIC ISLANDS:
Promoting entrepreneurship to create income
and employment opportunities
23
Federated States of Micronesia: this tailorshop
in Kosrae State opened with MEDC assistance
were trained to carry out the services for the
entrepreneurs. More than 1,200 entrepreneurs
received training or other assistance.
Issues such as traditional land tenure practice and
administrative barriers, weak access to credit and
information were also addressed. A web site and
online-business information service are operating.
In view of prevailing communal approaches and
land tenure, the project also advised communities
in the establishment of cooperative business pro-
jects for resource-based processing. For better
coordination and implementation of measures to
promote small-scale entrepreneurship, consulta-
tive committees were established in the provinces,
consisting of the local authorities and private sec-
tor representatives.
Results
• In five provinces of Solomon Islands, more
than 1,000 new employment opportunities
were created during three years through
the start-up of almost 200 new businesses
and the expansion of about 185 existing
businesses.
• In the Federated States of Micronesia, more
than 650 enterprises started or expanded
with the MEDC assistance, creating almost
1,500 new jobs and an estimated investment
of US$ 13.5 million.
24
Issue
Women’s burden is particularly compounded in
post-conflict situations. Frequently, they are the
sole breadwinner of the family as their male fam-
ily members have been either lost or separated in
the war, fled or jailed. Their immediate needs for
sustaining the family mount tremendously when
the supply of goods and services ceases and tra-
ditional community help schemes collapse due to
the restricted mobility and security.
In war torn areas of Rwanda, it becomes a criti-
cal issue to provide women and widows with
means to reassure their proactive role in com-
munity development and to support their fami-
lies’ well-being. Due to the devastating situation
after 1994, their need for improved and sustain-
able business operation has become even more
critical as a long-term solution to sustainable
livelihood. It was necessary to restore women’s
self-help initiatives and increase their business
potential, especially in small food processing.
Solomon Islands: A community-based
business venture
RWANDA:
Strengthening the role of women entrepreneurs
in a post conflict situation
Strategy
A careful analysis was conducted on the socio-
economic environment of the villages where
women run a business. Cultural, religious and eth-
nic composition of the community were analysed
together with the physical and social infrastruc-
ture, market access and gender division of labour.
Existence of any groups of displaced people as
well as returning soldiers in the community was
reviewed in order to avoid an imbalanced distri-
bution of benefits and power structure.
The project targeted women already engaged in
some form of processing activities, such as dairy,
fruit and vegetable products in view of the
importance of this sector for improved food
security in the communities. Trainers were
selected from the group of specialists working
in the business. Bank officers and field exten-
sion officers were invited to run a series of mock
consultation sessions with the women to discuss
their business plans.
By getting to know each other and sharing their
business experiences and problems in ethnically
mixed groups, women became aware of the need
to reconcile efforts to strengthen their self-help
initiatives and networks in the communities.
Results
• Some 40 women entrepreneurs were trained
in dairy products and fruit and vegetable
processing in Byumba and Kigali Rural
Prefectures. Ten of them obtained credit from
local development banks for expanding their
business and two of them successfully mar-
keted their products into the urban market
in Kigali.
• Trained women entrepreneurs started playing
the role of a local adviser to fellow entre-
preneurs at their own settings—a network
was thus established among women entre-
preneurs to share information, resources and
equipment to produce food products.
• Some 26 trainers were trained in the organ-
ization of skill training for women entrepre-
neurs and 23 of them went through refresher
training courses. More than half of them
belong to local NGOs and institutions.
25
Rwandan entrepreneurs work together
in dairy production
Issue
Whereas most students look for jobs after
leaving secondary schools, some go further on
to a vocational school in order to acquire spe-
cific technical skills. Once these young people
are in the labour market, they learn about busi-
ness on-the-job and there are few opportuni-
ties to systematically learn about business.
In an environment where almost half of the
population is under 15 years old and most of
them have to find jobs in the private sector,
knowing the basics of business at an early age
is an advantage. It stimulates the students of
secondary schools to associate academic sub-
jects in concrete terms and is useful for
students in vocational schools in order to asso-
ciate their technical skills with overall business
concepts.
A large number of entrepreneurs build up
savings while they work as employees in order
to start their own business. Therefore, it is
important that the young people develop a
notion of the private sector and entrepre-
neurship before entering the job market. The
Education White Paper (1992) of the Govern-
ment of Uganda aims at putting in place an
education system to produce manpower, which
will help create employment opportunities,
support modernization of agriculture, start
industries and contribute to rapid economic
growth and transformation.
Strategy
The UNIDO Project has introduced entrepre-
neurship curricula to secondary schools and to
a vocational training centre.
For secondary schools, the curriculum was devel-
oped for the classes of 13-18 year old students,
and the Ministry of Education approved it to
become an official course. UNIDO assisted the
National Curriculum Development Commission
(NCDC) in developing the textbooks and trained
the instructors. The curriculum has been intro-
duced in 10 schools with 5,000 students for a
pilot operation since July 2002. So far, school-
masters, instructors, students and parents are
happy with the pilot phase.
The Nakawa Vocational Training Institute (NVTI)
located in Kampala thought it was useful
to combine the vocational training with entre-
preneurship training. NVTI hoped that some
students would become interested in starting
their own business after some years of
employment by using the vocational skills
obtained. UNIDO developed the entrepreneur-
ship training curriculum for NVTI targeting the
students of 19-22 years old and trained the
instructors.
26
UGANDA:
Preparing youth for entrepreneurship—curriculum
development
Secondary school students in Kampala taking
an entrepreneurship development course
Issue
Promoting artisan craft development for export
markets can create job and income opportunities
in rural areas. However, the preservation of tradi-
tional culture is often neglected in this under-
taking. This in turn affects the livelihoods of the
artisans and their families and ignores export
potential based on a strong cultural reference.
Craftspeople are often unaware of the possibil-
ities to export, mostly due to a lack of contacts.
In addition, artisans are frequently not organ-
ized well enough to realize their potential
capacity of production and the quality of prod-
ucts is often not sufficiently high to meet for-
eign market needs.
The Government of Viet Nam has recognized the
need to reconcile the preservation of traditional
artisan crafts and cultural heritage with effective
marketing efforts to enter into export markets.
Strategy
UNIDO has conducted various types of technical
cooperation projects in the field of artisan crafts
development. The project in Viet Nam prepared
policies and guidelines for artisan craft sector devel-
opment and provided a wide range of assistance to
preserve and promote Vietnamese artisan crafts.
One of the crucial issues in the promotion of the
artisan craft sector is improving the technologies
and marketability of products through craft qual-
ity and design upgrading, research and training as
well as the collection and dissemination of infor-
mation. The project therefore included advisory
services for the establishment of an integrated
centre (the so-called “traditional craft village”).
The village will act as a tourist attraction while
containing training and research and development
facilities as well as an exhibition hall.
A training component was included in the pro-
ject during which on-the-job training was pro-
vided to artisans in order to improve the quality
of selected crafts.
Furthermore, the project carried out a state-of-
the-art survey on minority tribes’ artisan crafts
in the context of rural and mountainous village
development. The survey put forward a strong
need to elaborate the future development
visions for mountainous tribes’ traditional
craft promotion. Experiences were disseminated
through seminars and workshops.
Results
• The Ministry of Education has approved the
entrepreneurship curriculum materials for
secondary schools as an official curriculum.
Over 5,000 students at secondary schools
started to take the entrepreneurship curricu-
lum during the first pilot year.
• NVTI has approved the entrepreneurship
curriculum and has established a specialized
department for the entrepreneurship-train-
ing programme. Some 270 students are
also taking the entrepreneurship course at
NVTI. It is expected that the average
annual enrolment in future will be on a
similar level.
27
VIET NAM:
Establishing a “traditional craft village”
for export promotion
Results
• Policy recommendations for promotion of
traditional crafts were adopted by the
Government of Viet Nam and reflected in the
Prime Minister’s decision on the promotion
of rural industrial development in November
2000.
• The project provided the conceptual founda-
tion for the “traditional craft village” centre.
The land with 7.2 ha has been secured for the
establishment of the proposed village includ-
ing a training centre and exhibition hall.
• The specific requirements for quality
improvement for export promotion have been
clearly recognized by policy makers and arti-
sans. The Government has placed a high
development priority on training of national
designers and craft development coordina-
tors. Training programmes have been con-
ducted to improve the quality of products to
meet foreign market needs.
• A master plan on artisan craft development
for rural development is being carried out to
formulate the long-term detailed develop-
ment strategies.
28
Issue
Women entrepreneurs in Morocco are often
faced with a lack of operational and manageri-
al skills resulting in low productivity and
competitiveness. Cultural constraints are an
additional obstacle that inhibit the efficient
conduct of business for women. The resulting
loss of productivity not only has adverse effects
on their income but also on economic growth.
Some of the most promising sectors for the
Moroccan economy and those in which women
are the most numerous can be found in the
north of Morocco, in one of the most disad-
vantaged regions of the country. However, inef-
ficient production mechanisms and a lack of
managerial skills have resulted in a loss of pro-
ductivity and income for women entrepreneurs.
This is particularly true for traditional weaving,
olive oil production as well as industrial
The image of the “Traditional Craft Village”
MOROCCO:
Promoting productivity improvements
in rural women’s businesses
processing of figs, prunes, medicinal and aro-
matic plants. In the past, traditional weavers
exclusively used artificial fibres, thus attaining
only low prices for their products. Almost 20 per
cent of olive oil was lost due to inefficient pro-
duction methods and the high acidity in the oil
was hazardous to the health of the consumers.
No processing of figs and prunes took place. The
fruits thus had to be sold on local markets at
low margins or perished quickly.
Strategy
UNIDO’s project aimed to enhance the competi-
tiveness of enterprises managed by women. As
a first step, the project attempted to make
women aware of how they can improve their
production and thus their income. They are then
trained in both business management and pro-
duction techniques. The trainers are either mem-
bers of women’s groups or of existing public and
private support institutions, which have been
assisted by UNIDO in improving their capacity
to provide services to women entrepreneurs.
Two types of training are currently offered
by the project: (a) training of trainers with
the simultaneous creation of a network of peo-
ple skilled in areas such as economic activity
identification, information provision, business
management and marketing, who will be able
to follow up on the women they train and
(b) direct training of women. Trainers are in
regular contact with women’s groups to iden-
tify the exact needs of these women and to
adapt the courses accordingly. A third type of
training in formation of associations and in
the administration of cooperatives is being
introduced.
A fundamental element of the training is the
improvement of production techniques. At a pilot
training unit, the project provides training on
new methods using locally available equipment.
In the traditional weaving component of the
project, women learn how to diversify their
products, how to work on subcontract and to
use natural fibres in order to increase the export
potential of their products.
The olive oil component has been assisting
women’s cooperatives and groups to improve
production methods and the quality of the oil.
Course participants have learned how to use a
mobile unit that increases production efficien-
cy, techniques that reduce the acid content of
the oil as well as waste management. The
women have also received training in classifica-
tion of the produced oil, in quality control and
marketing. Several trainers have already repli-
cated the training in different rural areas.
The project component, concentrating on the pro-
cessing of figs, prunes, medicinal and aromatic
plants, focuses on drying of the products, packag-
ing and marketing. The equipment was developed
by UNIDO in collaboration with the University of
Vienna and is also being used in other projects.
Results
• The project has so far provided comprehen-
sive training, including coaching in produc-
tion, business management and marketing,
29
High quality for competitive products
to 339 women (traditional weaving:
60 women, olive oil production: 156 women,
processing of figs and prunes: 123 women).
• The training in the weaving component of
the project resulted in the participation
of some of the participants in trade fairs.
As a result, one cooperative has doubled its
income.
• About a dozen new weaving businesses
have so far been started as a result of the
training.
• As a part of the coaching programme of the
olive oil component of the project, a pilot asso-
ciation has received assistance in quality con-
trol, in business and financial management, in
the preparation of a label, in registering their
trademark, in promoting the products and in
the procurement of packaging material.
• The project is creating a critical mass of
trainers (both technical and managerial) who
are staff of local support institutions as well
as a network among these institutions, local
NGOs and credit institutions.
30
Issue
Women entrepreneurs see the establishment of
a productive business as a means to improve
their status in society as well as their family’s
standard of living and to serve their community
by creating employment opportunities. However,
due to a lack of technical skills, confidence,
strong individual involvement and the willing-
ness to take risks, women are often unable to
establish and sustain successful businesses.
In Kenya, women are the main food producers
and small farmers of the country, yet their poten-
tials remain largely untapped due to unequal
access to resources and the lack of support serv-
ices for women’s economic activities. Women
operating in food processing in Murang’a and
Kilifi districts, where large proportions of the pop-
ulation live in absolute poverty, face several major
constraints. These include their inability to judge
the profitability of their operations due to a lack
of basic accounting skills, insufficient technical
and business management skills as well as socio-
cultural constraints.
Strategy
The project aimed at the socio-economic
empowerment of women in the food processing
sector in Murang’a and Kilifi districts by assist-
ing them in their active search for business
opportunities. New technical skills, basic com-
puter literacy, business start-up assistance,
improved financial and business management as
well as the establishment of wider marketing
networks are among the services offered. In con-
trast to projects focusing solely on technical
skills upgrading, this project assists women in
strengthening their role in society and their con-
tribution to the community. This is achieved
through self-confidence building, information
provision on HIV/AIDS and, if required, through
functional literacy programmes. Training in con-
ducting self-assessment enhances women entre-
preneurs’ competitive thinking.
By facilitating women’s access to tools and skills
to improve, monitor and evaluate their progress
as entrepreneurs, the project enables them to
set goals for themselves and to achieve their
KENYA:
Socio-economic empowerment of women entrepreneurs
business objectives, both individually and by
working in groups.
Women entrepreneurs are encouraged to organ-
ize themselves in a business association. Thus,
they can get into touch with like-minded
women, exchange ideas and take part in policy
preparation processes that determine the future
of micro and small-scale enterprises.
Results
• A total of 170 women have been integrated
into the project so far. Feedback received from
participants indicates high satisfaction rates.
• In general, interest in business has increased
in the course of the training and women
developed awareness of the essential role of
personal initiatives and self-confidence to
succeed in business.
• Most of the participants would like to start
their own business or improve already existing
ones. Women felt that their self-confidence as
businesswomen has been enhanced. So far,
approximately 70 women have started their
business with the help of the programme and
have, on average, generated employment pos-
sibilities for two to three persons.
• Several of the women entrepreneurs employ
youngsters to market and distribute their
products by bicycle, thereby adding to
employment creation.
• Women entrepreneurs participating in the
project have understood the importance of
pricing and quality standards of raw mate-
rials, thus enhancing their bargaining power
when dealing with middlemen or larger
enterprises.
• Women entrepreneurs in one region felt so con-
fident after their training that they successfully
negotiated a market-sharing arrangement with
the commercial village bakery.
• Women envisage using the skills acquired to
improve the diet of their families and to con-
tribute to food hygiene in the country. They
consider serving the community by helping
train other women in food processing and
preservation.
31
Empower Women!
For information on the UNIDO Programme “Rural and Women Entrepreneurship Development”,
please contact:
Director
Small and Medium Enterprises Branch
A-1400 Vienna, Austria
Tel: (+43-1) - 26026-4820/4821
Fax (+43-1) – 26026-6842
Email: [email protected]
Web site: www.unido.org
Photography: UNIDO; Z. Kiruthu, E. Nanyonjo, H. Uesugi, T. Zirngibl
Printed on environmentally friendly paper.
32
UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
Small and Medium Enterprises Branch
Programme Development and Technical Cooperation Division
Vienna International Centre, P.O. Box 300, A-1400 Vienna, Austria
Telephone: (+43-1) 26026-4820 or 4821, Fax: (+43-1) 26026-6842
E-mail: [email protected], Internet:http://www.unido.org
Printed in Austria
V.03-81817–April 2003–1,000
doc_513185211.pdf
"Rural and Women Entrepreneurship (RWE) Development Programme", which is managed by the Small and Medium Enterprises Branch. As a core contribution of UNIDO to poverty reduction, the programme supports rural people and women in their aspirations for entrepreneurial initiatives.
UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
ec onomy envi r onment empl oyment
Developing rural and women
entrepreneurship
a path out of poverty
a path out of poverty
Developing rural and women
entrepreneurship
UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
Vienna, 2003
The designations employed and the presentation of material in this publication does not imply
the expression of any opinion whatsoever on the part of the Secretariat of the United Nations
Industrial Development Organization concerning the legal status of any country, territory, city
or area, or of its authorities, or concerning the delimitation of its frontiers or boundaries. The
opinions, figures and estimates set forth are the responsibility of the authors and should not
necessarily be considered as reflecting the views or carrying endorsement of UNIDO. The des-
ignations, “developed” and “developing” economies are intended for statistical convenience and
do not necessarily express a judgement about the stage reached by a particular country or
area in the development process. Mention of firm names or commercial products does not
imply endorsement by UNIDO.
This document has not been formally edited.
CONTENTS
Introduction 5
1. CHALLENGES 6
Poverty: No exit? 7
Millenium development goals 7
The neglect of rural development: a precarious imbalance 7
Gender inequality: impediment to growth and poverty reduction 8
Building a “bottom-up growth strategy” 9
2. RURAL AND WOMEN ENTREPRENEURSHIP DEVELOPMENT 11
Objective 12
Approach 12
Expected impact 12
Main services and methodologies 13
UNIDO programme principles 16
3. PROJECT EXPERIENCES 17
Mozambique: streamlining regulatory business environment in the provinces 18
Uganda: private sector assists private sector 19
Central America: linking private sector associations, NGOs and universities 21
Pacific Islands: promoting entrepreneurship to create income and
employment opportunities 23
Rwanda: strengthening the role of women entrepreneurs in a
post conflict situation 24
Uganda: preparing youth for entrepreneurship – curriculum development 26
Viet Nam: establishing a “traditional craft village” for export promotion 27
Morocco: promoting productivity improvements in rural women’s businesses 28
Kenya: socio-economic empowerment of women entrepreneurs 30
People living in rural peripheries,
especially women, shoulder the burden
of the worlds’ poverty.
This brochure describes UNIDO’s “Rural and
Women Entrepreneurship (RWE) Development
Programme”, which is managed by the Small
and Medium Enterprises Branch. As a core
contribution of UNIDO to poverty reduction,
the programme supports rural people and
women in their aspirations for entrepreneurial
initiatives.
People living in the rural peripheries, and espe-
cially women, shoulder the burden of the world’s
poverty, particularly in the Least Developed
Countries and sub-Saharan Africa. They have
been deprived for too long from participating
in the opportunities and benefits of economic
growth and globalization.
Reducing urban-rural disparities and gender
inequalities is a crucial element for any poverty
reduction strategy. Mobilizing the potential
productivity of rural people and particularly of
women is indispensable to achieve the resilient
economic growth that will pull people above the
poverty line.
Therefore, the RWE Programme aims at pro-
moting a conducive business environment and
at building institutional and human capacities
that will encourage and support the entrepre-
neurial initiatives of rural people and women.
Part 1 of this brochure describes the challenges
to be addressed, followed by a description of
UNIDO’s approach, services and methodologies for
rural and women entrepreneurship development
in Part 2. Project experiences are presented in Part
3, illustrating the results UNIDO has achieved
through its technical cooperation projects.
5
INTRODUCTION
6
1. Challenges
Poverty: no exit?
The widening gap between rich and poor world-
wide is a major threat to global security and
economic integration. About half of the planet’s
population are poor, living on less than two
dollars a day. Poverty is a vicious circle, being
both the major cause and the effect of a situa-
tion, in which no opportunities seem to exist for
the poor to help themselves.
Millennium development
goals
Eradicating poverty is a shared objective of
the international community. The Millennium
Declaration of the United Nations stipulates
the target of halving the proportion of the
world’s people whose income is less than one
dollar a day by the year 2015. Another millen-
nium development goal is to promote gender
equality and empower women as effective ways
to combat poverty, hunger and disease and to
stimulate development that is truly sustainable.
Efforts are underway to put in place macro-
economic, structural and social policies and pro-
grammes to promote growth and reduce poverty.
To that end, Governments in 45 countries* have
prepared or are preparing Poverty Reduction
Strategy Papers (PRSP) in a participatory process
involving civil society and development partners.
They try to understand and analyse some fun-
damental questions: Who are the poor? Where
do they live? What are the main barriers for
them to move out of poverty? — The answers
can help setting priorities for policy choice.
The neglect of rural
development: a precarious
imbalance
A staggering 75 per cent of the world’s poor live
in rural areas. And yet, resources and policies
continue to be biased in favour of urban devel-
opment. An imbalance in development is the
consequence, with detrimental effects on both
rural and urban people.
With rural areas not able to provide enough
opportunities for people to sustain their lives,
the burden of supporting the poor and rural
population falls increasingly upon cities. The
growing number of rural poor seeking work
in overcrowded cities stretch social and physical
infrastructure and economic opportunities in the
urban areas beyond their capacity.
7
• 1.2 billion people live on less than US$ 1 per day
• 2.8 billion people live on less than US$ 2 per day
• 75 per cent of the poor live in rural areas
• 60 per cent of the world’s poor are women and girls
• The average income in the 20 richest countries is 37 times higher than in the 20
poorest countries
• Higher inequality tends to retard growth in poor countries and encourage growth
in richer places
Rural development and gender
equality are key elements of
strategies to reduce poverty and
create income and employment
opportunities.
* As of February 2003.
On the other hand, the migration of rural men
to urban areas leaves unbalanced family struc-
tures behind, with women, children and elderly
expecting remittances.
Most of the rural population depends, directly
and indirectly, on small-scale food crop agricul-
ture, fishery, pastoral animal husbandry or rural
wage labour associated with plantations and
ranches, and ancillary activities linked to the
economies of the rural life and rural townships.
Many rural families need to diversify their
sources of income and employment in view
of increasingly smaller parcels of land, low
agricultural productivity, volatile weather con-
ditions and soil erosion.
The rural non-farm economy plays an important
role for wealth creation and well-being across
countries. For example, small rural households
with fewer than 0.5 hectares earn over half of
their total income from non-farm sources. The
composition is generally one-third manufactur-
ing, one-third commerce and services with min-
ing and construction accounting for the rest.
Gender inequality:
impediment to growth
and poverty reduction
Women and girls constitute three-fifths of the
world’s poor. Their poverty level is worse than
that of men as clear gender disparities in edu-
cation, employment opportunities and decision-
making power exist.
A large number of women are mainly engaged in
subsistence agriculture as well as in micro and
small-scale enterprises (MSE). In most of the
developing countries, particularly in Africa,
women constitute 70-80 per cent of the total
agricultural labour force and they account for
over 80 per cent of food production. It is not
surprising therefore to find many women engaged
in food processing, weaving, personal services,
beverage preparation, and selling of snack foods.
In the MSE sector worldwide, women make up
one-quarter to one-third of the total business
population and in manufacturing they constitute
one-third of the global labour force.
In addition to their economic and income-gener-
ating activities, women assume multi-faceted roles
in society, i.e. as breadwinner of a family, unpaid
family workers, service providers in the communi-
ties and mother/care-taker of the family.
8
A poverty-reducing growth strategy
should aim at the creation of a
complex and diversified economic
structure and should include the
development of non-farm econo-
mic activities and the facilitation of
the transition of informal activities
to the formal growth sector.
A rural development programme
should combine infrastructure
development, education and health
services, investment in agriculture,
and the promotion of rural non-
farm activities, in which women
and rural population can engage.
Need to diversify economic opportunities
for a better life
In spite of their important contributions to
socio-economic development, women suffer
from various constraints, which inhibit them
from fully realizing their potential for develop-
ment. Cultural values and social norms hinder
the equal participation of women in society. One
of the major constraints women face as entre-
preneurs is the unequal access to productive
resources and services, including finance and
skill upgrading opportunities. Some legal provi-
sions and legislative systems make it difficult for
women to take initiatives for business develop-
ment. Furthermore, their reproductive role in the
family and the community puts women in a dis-
advantaged position to engage in entrepre-
neurial activities.
To respond to the needs of women to materialize
their economic potential and thereby to improve
their standard of living, it is necessary to design
programmes by applying a mainstreaming strat-
egy. This requires devising measures to integrate
women as decision-makers, participants and
beneficiaries in all relevant development activi-
ties, irrespective of the sector or type of
activity. It is also necessary to address the total-
ity of problems women face as entrepreneurs, due
to the wide spectrum of elements affecting the
equitable participation of women in development.
A plan or strategy must be designed and imple-
mented in close collaboration with various
development partners in different specialized
areas, notably: education, health, human rights as
well as environment and energy.
Building a “bottom-up
growth strategy”
It is necessary to take a multi-dimensional per-
spective on poverty reduction. This includes
“bottom-up growth strategies” to encourage the
broad-based rise of entrepreneurial initiatives.
The benefits of economic growth generated by
a handful of modern industries do not neces-
sarily trickle down to those business sectors
where the largest proportion of the population
is engaged, and not at an acceptable pace.
Most Least Developed Countries (LDCs) and sub-
Saharan African countries are characterized by
a polarized industrial system of a handful of
large enterprises—owned by either the state,
foreign investors or a few rich local entrepre-
neurs—and a large number of micro enterpris-
es, mostly in the informal sector. Only a few of
these businesses have the capacities to respond
to the emerging opportunities from the export
sector and the changing international economic
regime.
9
Gender equality is a prerequisite
for poverty reduction because of
the contribution women make and
the role they play in society and
in the economic well-being of
the family and communities.
Be it in rural or urban areas, be it
in micro or medium and large
enterprises, women must be an
integral part of development,
not only as beneficiaries,
but also as decision–makers and
agents of change.
Woman on the way to a maize mill
Poverty-reducing growth strategies need to
diminish policy and regulatory obstacles that dis-
courage local entrepreneurial initiatives and to
improve the access to skill development opportu-
nities that strengthen entrepreneurial capabilities.
The “bottom-up growth strategy” focuses on
the transformation and diversification of micro-
and small-scale enterprises to growth-oriented
activities and on increasing the productive
capacity in order to enable them to participate
in the mainstream economy of the nation.
This strategy is not a welfare programme, but a
necessary condition for attaining sustainable eco-
nomic growth by unleashing under-utilized pro-
ductivity potentials. Thus, the aim of a “bottom
up economic growth strategy” is to help poor peo-
ple to grow out of the poverty trap. Such a strat-
egy complements and supports the growth of a
modern and export-oriented sector.
10
Elements of a “bottom-up growth strategy” to enable rural people and
women to participate in the mainstream economy are:
• The creation of an enabling business regulatory environment, in which rural
and women entrepreneurs can fulfil their own initiatives for advancement;
• The strengthening of entrepreneurial capabilities; and
• The promotion of collective self-help efforts of small-scale entrepreneurs.
People are the asset of the future
2. Rural and women
entrepreneurship development
Objective
The aim of UNIDO’s Rural and Women Entre-
preneurship (RWE) Programme is to contribute
to poverty reduction through entrepreneurship
development—with a focus on rural develop-
ment and gender equality.
The essential elements in this Programme are to
create a business environment that encourages
the initiatives of rural and women entrepreneurs
and to enhance the human and institutional
capacities required to foster entrepreneurial
dynamism and enhance productivity.
Approach
Business opportunities are not created by exter-
nal intervention—they arise from markets and
entrepreneurial capabilities. The issue is to
enable rural and women entrepreneurs to take
advantage of market opportunities.
Micro- and small-scale enterprises (MSE) are
affordable and manageable by rural people. They
create a large number of non-farm employment
and income opportunities in relatively poorly
developed areas and require small capital and
little sophisticated managerial and technical
skills. MSEs are also the seedbeds for a broad
development of the private sector throughout
the country, forming the foundation for the
national economy and social development at the
grassroots.
Individual entrepreneurs are a driving force for
competitive MSEs as a growth base. However,
the policy and institutional framework needs to
be conducive to encouraging entrepreneurial
initiatives. Human capabilities and the right
institutional framework are necessary conditions
for entrepreneurship to flourish, particularly in
rural areas.
The RWE Programme therefore focuses on:
• Strengthening the public administration to
make the regulatory and administrative envi-
ronment more conducive for rural and
women entrepreneurs.
• Human resource development for increased
competitive entrepreneurship, technology
absorbing capacities and women’s control
over asset management.
• Development of the policy advocacy and the
collective self-help capacities of rural and
women entrepreneurs.
12
EXPECTED IMPACT
The RWE Programme aims at:
• Improved business performance
of MSEs owned by rural and
women entrepreneurs;
• Increased transformation of
MSEs from the informal to the
formal sector;
• Increased number of start-ups.
Leading to: Increased income and
employment opportunities in rural
areas and particularly for women.
Main services and
methodologies
Business and regulatory environment
for women and rural entrepreneurs
Compliance with complex regulatory require-
ments and dealing with bureaucratic webs
are relatively more expensive for rural entre-
preneurs than for urban and larger enterprises.
Cumbersome and centralized bureaucracies
often lead to lengthy licensing processes and
costly operations of rural businesses. They may
thus discourage entrepreneurial activity.
The public administration in rural areas has
relatively weak capacities to implement policies
and to maintain conducive framework condi-
tions for entrepreneurial initiatives. The action
of local authorities is often based on a vague
understanding of what to regulate and how to
regulate. It can result in arbitrary exercise of
regulations.
Rural and women entrepreneurs’ understanding
of regulations as well as their capacity to iden-
tify unjustified application of the regulations are
weak. Institutions and agents to arbitrate dis-
putes are scarce in rural areas.
For women entrepreneurs, the constraints are
often exacerbated by laws and regulations that
explicitly discriminate against them. Further-
more, the gender-sensitivity of many officials in
rural areas tends to be more heavily influenced
by the local tradition than in urban areas.
The RWE Programme supports strongly commit-
ted national and local leaders that want to
address the above issues of the regulatory busi-
ness environment. Depending on the analysis of
the constraints emanating from the regulatory
and administrative framework, there are typi-
cally two main issues to be addressed:
• The need to improve legal texts;
• The need to improve the implementation of
existing regulations.
13
METHODOLOGIES AND TOOLS
For the diagnostic study of the regulatory and administrative constraints,
UNIDO projects carry out surveys among the business community and conduct studies
to analyse the impact of regulations and their implementation on MSEs in areas such
as business licensing, allocation of business land, taxation, inspections or trade
regulations.
The findings result in a participatory process to develop remedial action plans by
the national and local partners to address the identified issues. They may for example
include proposals for streamlining procedures, establishing one-stop-shops to reduce
the number of institutions to be contacted by entrepreneurs seeking business licenses,
the development of databases that facilitate and speed up licensing processes, institu-
tionalized dissemination of information on regulations, etc. To facilitate the imple-
mentation of the proposed measures, UNIDO provides technical advice, customized
methodologies and training programmes for public administrators.
To complement these measures, the RWE Programme includes entrepreneurial
awareness programmes for rural and women entrepreneurs on their rights and
obligations by using information seminars, leaflets, radio programmes, etc.
Business development services for rural
and women entrepreneurs
Specialized business development institutions
are often not available or their services are not
affordable for rural entrepreneurs. For women
entrepreneurs, specialized support institutions
hardly exist to cater to their specific needs.
Thus, entrepreneurial and technical training,
advisory and information programmes often
have to be carried out within a non-conven-
tional set-up.
As a guiding principle, the RWE Programme
seeks to work with existing organizations on
the basis of an assessment of their absorptive
capacities and initiatives. Through training of
trainers, advisors and managerial staff as well
as the development of practical and effective
methodologies and tools, projects strengthen
the technical and managerial capabilities of the
partner institutions to deliver specialized serv-
ices to women and rural entrepreneurs.
The programmes for entrepreneurship training,
small industry advisory services, women entre-
preneurship development and technical skills
upgrading are developed by carefully tailoring
UNIDO’s methodologies to fit to the needs and
the absorption capacity of the entrepreneurs
and the support institutions. These services will
help entrepreneurs to improve their production
processes and management techniques and
support their initiatives to start up new
enterprises.
The capacity building also addresses institutio-
nal management improvements to help the part-
ner institutions in the continuous development
of appropriate service programmes, their deliv-
ery and financial strategies to sustain the serv-
ices, e.g. by charging fees or reducing costs of
service delivery. Operations manuals and insti-
tutional business plans are developed jointly
with the partner institutions. Building networks
of cooperating institutions is an important
strategy for developing service institutions in
rural settings.
14
METHODOLOGIES AND TOOLS
For entrepreneurship training, exist-
ing UNIDO methodologies and materi-
als—such as trainer’s guides, handouts
for participants or software pro-
grammes—are adapted to the specific
project conditions. Topics can include
marketing surveys, production process
management, business plans, costing
and pricing strategies or organizing
handicraft production for export
markets. Methods range from business
opportunity seminars to full entrepre-
neurship training courses. Entrepreneur-
ship development curricula in
secondary and vocational schools are
also used.
Specific methodologies and manuals
for women entrepreneurship
development (WED) have been pre-
pared such as a training programme
for women entrepreneurs in food pro-
cessing, training modules on team-
work, negotiating or the monitoring
and evaluation of WED projects.
Women entrepreneurship training pro-
grammes also emphasize confidence
building for managing own assets.
Small industry advisory services
are developed through capacity build-
ing on such subjects as industrial
extension methods, organizing collec-
tive self-help groups or community-
based projects, village outsourcing or
the development of entrepreneur-to-
entrepreneur advisory services.
Technical skills upgrading modules in
specific subsectors are applied in co-
operation with UNIDO’s subsector and
environmental specialists and address
topics such as food and fish process-
ing, textile and wood industries or
waste management.
Collective self-help capacities and
advocacy roles
Supporting the initiatives of groups, private sector
associations and communities to develop their self-
help programmes is important in view of scarce
service institutions in rural areas and weak advo-
cacy capacity of rural and women entrepreneurs.
Self-help groups empower micro- and small
entrepreneurs to identify their needs, plan and
implement their own projects, share the bene-
fits of their collective efforts and evaluate their
programmes and projects.
Rural and women entrepreneurs can establish
common projects such as:
• Collective marketing;
• Bulk purchasing;
• Common facilities, e.g. to share machinery
and equipment, a warehouse or a vehicle or
office facilities;
• Group-owned enterprises;
• Group lending;
• Training programmes.
15
METHODOLOGIES AND TOOLS
UNIDO has developed a series of capacity building programmes to promote
advocacy roles and collective self-help initiatives, which have been implemented
in a number of countries.
A training programme on the methodologies for organizing, facilitating and
assisting self-help entrepreneurial groups helps business advisers, MSI develop-
ment workers and staff of associations to promote and implement this approach.
The training programme consists of a Trainer’s Guide and reference materials in
three modules: (a) organizing self-help entrepreneurial groups, (b) developing group
projects and (c) motivating and strengthening entrepreneurial groups. For associa-
tions, these materials are complemented by a specific training programme on
managing an association.
In many village settings, reducing both time and energy use for staple-food pro-
cessing is of high concern to the rural women. UNIDO has developed together with
IFAD and UNDP the concept of a Multipurpose Village Workshop (MVW), which
connects a multiple set of equipment for milling, dehulling, oil pressing, etc., to
one motor in order to optimize the use of available equipment and energy. It is
managed by a self-help community group and local small business circles. The MVW
thus helps women to increase and diversify their food production as well as to
improve the quality of their products and their productivity.
Community-Production Centres (CPCs) are a combination of an organized
apprenticeship scheme and a small-scale industrial village workshop. The basic merit
is to share production facilities such as premises, equipment, storage room, tools,
power, communication, management, etc. A CPC could combine the production
with a service function whereby the CPC would organize the procurement of raw
material and the collective sale of the products. An important element for the
sustaining success of CPCs is a strong traditional and local leadership, supported by
the community members.
By organizing themselves in groups and asso-
ciations, rural and women entrepreneurs can
effectively voice their specific concerns and
advocate changes through formal policy mak-
ing processes. This is important since their
capacity to participate in local and national pol-
icy making is often limited, and their interests
are often insufficiently represented by urban
and male dominated lobbying groups.
Getting started as a group or an association,
planning and implementing common projects
and keeping the motivation going are the crit-
ical issues for building capacities of the entre-
preneurial groups and their advisors.
In communities with a strong traditional leadership
and organization, collective projects can be under-
taken by community structures and organizations.
16
UNIDO PROGRAMME PRINCIPLES
Strategic focus: The focus is on LDCs, sub-Saharan Africa and countries with special
needs, such as post-crisis zones or countries with high inequality leading to pockets of
poverty.
People-centred: The approach is people-centred and therefore starts with the characteri-
zation of the disadvantaged target population groups: women, rural population, youth,
ethnic groups and refugees and displaced people. The factors impeding their inclusion into
economic mainstream and growth activities are analysed with participatory approaches to
identify the entry points of the technical assistance.
Root-cause analysis: A comprehensive analysis of the specific root causes of poverty,
inequality and conflicts forms the basis for developing technical cooperation projects in
support of “bottom-up growth strategies”.
Gender sensitive: A specific analysis is required to understand the causes of gender
inequalities and possible discriminatory effects. The programme uses both a targeting as
well as a mainstreaming approach, depending on the analysis.
Locally specific: It needs to be understood that no blueprint design for rural and women
entrepreneurship development projects is possible. Existing methodologies have to be care-
fully selected and adjusted according to local conditions and complexities.
Asset-based: Rather than pursuing a needs-based approach, the programme tries to build
on existing assets, abilities and initiatives of the poor and aims to strengthen them.
Analysis of absorptive capacities: Projects are designed on the basis of the capacity of
partner institutions to absorb the technical assistance. Factors to be assessed include:
visions of the leadership on development objectives and their commitment to self-improve-
ment, track record of management, technical capabilities of the staff, financial sources and
fund raising capabilities for recurrent expenditures and capital investment, existing facili-
ties, track record of client satisfaction.
Sustainability: The technical assistance aims at building up lasting capabilities of the
institutions to operate sustainable service delivery on their own after the project assistance
is over. Dimensions of sustainability are of financial, technical and managerial nature.
Open architecture: Strategic alliances for project formulation and implementation are
being sought in order to integrate the projects with Government programmes as well as
other operators of similar projects at the local level, and to create synergies for greater
impact.
Impact measurement: Performance and impact are analysed periodically with the stake-
holders and, to the extent possible, quantitative impact indicators are applied.
Learning lessons: The continuous monitoring of experiences of UNIDO and others and
the feeding back of lessons learned into the project design and implementation in the
field of rural and women entrepreneurship development is being undertaken to ensure
high quality of the technical assistance projects and to contribute to global forum
debates.
3. Project experiences
Issue
Administrative barriers to investment and to the
legalization of enterprises have significant
adverse effects on business growth by discour-
aging the initiatives of entrepreneurs. Micro-
and small enterprises are disproportionately
affected.
In Mozambique, obstacles include bureaucratic
procedures, lack of accurate information, costly
and time-consuming customs procedures. Delays
and unnecessary financial requirements in obtain-
ing business licences arise from inefficient inter-
departmental coordination among the different
government bodies. On average, it takes the six
or more public institutions involved in the process
four months to legalize economic activities.
Strategy
As a measure to overcome the administrative
obstacles to investors and entrepreneurs, the
Provincial Government of Zambézia, in cooper-
ation with UNIDO, created the Balcão Único
(one-stop shop) in Quélimane. Balcão Único (BU)
facilitates correct and efficient applications of
rules and regulations in order to stimulate pri-
vate sector-led growth. BU ensures coordination
among different provincial departments on
licensing new businesses.
BU aims to speed up review and approval
procedures for licensing and to disseminate
information on regulatory requirements and
incentive programmes. BU enables the entrepre-
neur to treat all paperwork at one location
instead of visiting several government offices
and to make only officially required fee pay-
ments in a transparent manner. A continuous
monitoring and accompanying process follows
until the decision is made and the licence is
handed over to the entrepreneur. Thus, while the
actual processing of applications is not done by
BU itself, it guarantees the proper and trans-
parent application of existing legal frameworks.
This is achieved by accepting payments only by
way of bank deposits and by offering relevant
information on fees and clients’ rights and obli-
gations. BU ensures an efficient monitoring of
the process by using routing slips to register the
administrative time needed and by means of its
database. The database provides statistical infor-
mation necessary for the planning of develop-
ment policies by the public authorities.
The Office of the Provincial Governor adminis-
ters the BU and the provincial government
budget covers all the operational costs.
Results
• Balcão Único (BU) has been successful in its
activities so far and has been praised both
by the business community and by the
provincial government.
18
MOZAMBIQUE:
Streamlining regulatory business
environment in the provinces
Staff of the Balcão Unico explaining their
work to visitors
UGANDA:
Private sector assists private sector
Issue
Entrepreneurs in rural areas suffer from a lack
of training and advisory services that would
allow them to upgrade their managerial and
technical skills and solve immediate production
problems, thus improving productivity and
increasing profitability.
The government often does not have a sufficient
budget to finance the costs of training and
advisory institutions. The technicians of public
institutions may not have the necessary private-
sector orientation and business spirit to provide
practical advice to entrepreneurs.
In Uganda, where more than 70 per cent of
enterprises employ less than 20 people, micro-
and small enterprises play an important role
in the economic and social life of the majority
of citizens. However, the growth and the
competitiveness of this sector are hampered
by a lack of managerial and technical skills,
weak infrastructure, difficulties in accessing
loans, and complicated company registration
processes.
Strategy
One of UNIDO’s activities focuses on improving
the access of small entrepreneurs in rural dis-
tricts to advisory services and training. The pro-
ject has introduced the concept of a Master
Craftsmen Programme (MCP) in six districts of
Uganda. It is a self-sustaining, demand-driven
and private sector-led system of assistance to
entrepreneurs, coordinated by the Uganda
Small-Scale Industries Association (USSIA).
About 100 small-industry entrepreneurs have
been selected and trained to provide fee-based
services to other micro and small-scale
industrial entrepreneurs in their districts. The
six districts are Masaka, Mbarara, Kabarole,
Mubende, Mbale and Lira.
• From its inauguration in June 2001 until
August 2002, BU handled 143 applications
from enterprises, out of which 79 received
licences. An estimated 35 of them were oper-
ational by August 2002, representing a new
source of tax revenue for the public sector.
The processing time has been reduced to 25
days on average.
• Entrepreneurs find that BU has improved
processing time, increased transparency, effi-
ciency and professionalism of the licensing
process, uniform and consistent interpreta-
tion and application of regulations, reliable
information on procedures and consistent
charges of fees as determined by law.
• The overall effect on employment will
only be noticeable in the long run, as a
derivative of the improvement of entre-
preneurs’ and investors’ perception of the
provinces’ regulatory environment as well
as other factors affecting the business
climate. Nevertheless, an estimated 200 jobs
have so far been created in the formal
sector.
19
Essential in this strategy are the dynamics of
communal obligations as the driving force,
which work in a way that business people in the
same business community help each other.
However, clients were not used to paying fees
for training and advisory services, sometimes
affected by heavily donor-subsidized services.
The UNIDO project has not given any financial
incentives or subsidies to the MCP, but helped
in the conceptual development, preparation of
methodologies and manuals, training of advisors
and campaigning for the fee-based services.
The MCP services focus on metalworking, electri-
cal and electronics engineering, food processing,
textile, leather and woodworking. The major func-
tions are industrial advisory services, training in
business and technical skills upgrading, encourag-
ing the formation of entrepreneurial self-help
groups, and secretarial services at the association’s
district offices.
Results
• A total of 100 entrepreneurs and skilled
technicians have been trained as MCP advi-
sors and are operating in six districts.
• Over 750 entrepreneurs in the six districts
improved their managerial and technical skills.
• Training manuals and operational manuals
for the MCP are being used.
• Neighbouring districts have requested the
services of the MCP advisors.
• USSIA district officers have been trained in
the management of the association and the
coordination between the national and the
district offices has improved.
• A network of NGOs cooperating with MCP
has been expanding.
20
MCP advisor in a metal workshop
Hussein B. has a maize milling business in the Western Ugandan town of Fort Portal. He started
it after his farm and transport business collapsed when his property was looted during the war
in 1985. Hussein has 15 years of experience in milling and he supplies the flour to schools and
government institutions. However, all along he had not seen his business grow as hoped and
had been thinking that his workers may have been cheating him on his business. Electricity costs
were taking all his earnings. One of the MCP advisors, Ozunga, invited him to attend a skills
upgrading training in milling techniques and maintenance, but Hussein was hesitant and asked
what new things he could learn. However, he decided to give it a try and paid 64,000 shillings.
Hussein offered to use his mill as a venue for the practical training. At the end of the training
programme, Hussein realised that his mill was loosing 8 kg of flour for every 100 kg: the whole
factory was full of flour on the walls, ceiling and floor. He usually milled 30 bags a day, which
meant a loss of 192,000 shillings per day. Hussein made the necessary modifications in his maize
mill, which he had learnt from the MCP training. Today, the lost flour at his mill has been
reduced to only 1 kg for every 100 kg. In four months he managed to save enough money to
buy a rice huller to add to his business.
Issue
Promoting women’s participation in the produc-
tive sector is a major challenge in Central
American communities. In particular, women
with a low level of training and education, and
those being alone at the head of the family need
to organize themselves for productivity gains to
increase their income. There is a pressing need
for them to be able to improve their market
access and grow their businesses competitively.
For young persons, a major challenge is the
development of an entrepreneurial culture for
enterprise and job creation, while up-grading
their technical skills at the same time.
The main issue was to find effective ways
through the establishment and networking of
business support programmes to bring women
and young entrepreneurs into the mainstream of
entrepreneurial ventures and private sector
development.
CENTRAL AMERICA:
Linking private sector associations, NGOs
and universities
21
A woman MCP advisor in a carpentry shop
Adolf H. is a young and dynamic businessman in his twenties. He owns a carpentry workshop
in Mubende, 200 kilometres west of Kampala. His equipment mostly consists of hand tools and
one bench. Adolf used to complain about not having enough customers, and consequently low
sales. When he attended a MCP workshop on carpentry he realized that his problem was not
the lack of customers but the quality of his work. He approached Mzee, one of the MCP
advisors in the district. Mzee reviewed the work of Adolf and, during two weeks at Adolf's own
workshop, gave him hands-on advice to improve the product design, material selection, surface
preparation, joints etc. Before the training, Adolf used to sell his Johnny set at 120,000 to
150,000 shillings. The set they worked on during the training was sold for 450,000 shillings.
Adolf paid for the training fee of 35,000 shillings at the USSIA office. All his other products
are now fetching about 20-30 per cent more than before. He has managed to attract orders
from a coffee factory that used to buy furniture from Kampala. His average sales have multiplied
five-fold. He has now asked Mzee to give him more training.
Strategy
The project has been assisting private sector
institutions, universities and NGOs in Guatemala,
Honduras and Nicaragua to build their organi-
zational capacities for improved delivery of spe-
cialized business support services for women
from the poorer segments of society who man-
age small food-processing enterprises and their
employees.
The institutional capacities of counterpart agen-
cies and their local collaborating agencies are
strengthened through training, developing and
adapting methodologies and technical advice to
address the demand for managerial and techni-
cal services required by women entrepreneurs.
The women targeted are those that have some
basic experience in agro-food businesses and
production, and that need assistance in business
development and growth. Women entrepreneurs
are guided to develop commercial attitudes and
a strong production orientation, as this is often
a major constraint that has been observed in
these projects.
For youth entrepreneurship development, the
project has taken a catalytic approach to address
the issue of unemployment of school leavers and
graduates with a technical background in the
food-processing sector. The project facilitated
their access to technical knowledge, credit link-
ages and practical business experiences to help
them shape their ideas for enterprise develop-
ment. While focusing on skill training to deve-
lop the potential of young entrepreneurs in the
agro-food sector, it was found to be essential
that this should be complemented by preparing
business plans to facilitate credit requests and
approval.
A basis for success of the project are the strong
linkages established between the private sector
associations, local training institutions and uni-
versities in the three countries. They all cooper-
ate to offer the integrated service package for
the young potential entrepreneurs.
The programmes are developing synergies with
other UNIDO programmes currently being exe-
cuted in the three countries, as well as with
entrepreneurship related programmes imple-
mented by other development cooperation
agencies. There are also a number of positive
synergies and benefits developed between the
two programmes in Central America, i.e. in
organizing internships, marketing surveys and
business ventures.
Results
• More than 460 women entrepreneurs
trained, with approximately 80 employees.
• Some 22 groups of women entrepreneurs
assisted to set up production facilities.
• A total of 138 facilitators trained, out of
which 31 are actively working with women
entrepreneurs and groups.
• Agreements of six NGOs obtained to act as
credit facilitators.
• Some 75 rural and urban young entrepre-
neurs trained, with approximately 40 per
cent setting up an enterprise.
22
Food processing as a business opportunity
Issue
In some countries, entrepreneurial spirit and ini-
tiatives are very weakly developed due to a lack
of relevant skills and knowledge, little exposure
to the outside as well as for historic and cul-
tural reasons.
In several Pacific island countries, this is
particularly true in the context of economies,
which are characterized by agricultural subsis-
tence activities or a preponderant public sector.
Furthermore, traditional values emphasize com-
munal approaches rather than individualistic
entrepreneurship. Policy and institutional set-
tings are not conducive to entrepreneurial ini-
tiatives. The result of all these factors is a
weakly developed private sector and acute
shortages of income and employment opportu-
nities.
Strategy
UNIDO advised and managed projects in the
Federated States of Micronesia and in Solomon
Islands, having as a common element the aim
to promote a stronger private entrepreneurial
base. The focus was on developing entrepre-
neurship through a more favourable policy and
administrative framework, strengthening support
service capacities and fostering collective self-
help initiatives of groups of entrepreneurs and
communities.
With the establishment of Micronesian
Entrepreneur Development Centres (MEDC) in
four states (Pohnpei, Chuuk, Kosrae and Yap), the
project built a network of institutions offering
training programmes, business and technical
advisory services and business information to the
island entrepreneurs. It also contributed to
improve legislation to be more conducive for
enterprises to start, grow and diversify. UNIDO
prepared entrepreneurship development method-
ologies and training manuals, which were later
also successfully adapted in other countries, and
trained about 80 trainers, business advisors and
other staff of the cooperating institutions. More
than 1,600 potential and existing entrepreneurs
benefited from MEDC assistance.
In the Solomon Islands, the project contributed
to address the acute shortage of job opportuni-
ties in rural areas where people derive their
income mostly from a mix of subsistence and
commercial activities and subsequent migration
from the provinces to the capital. It promoted
the development of small-scale and cottage
industries in rural communities in Malaita,
Makira, Isabel and the Western Provinces as well
as in Guadalcanal and Honiara.
For training activities, the project staff adapted
and developed UNIDO training materials for
entrepreneurship development and technical
skills training. Ninety staff of various institutions
PACIFIC ISLANDS:
Promoting entrepreneurship to create income
and employment opportunities
23
Federated States of Micronesia: this tailorshop
in Kosrae State opened with MEDC assistance
were trained to carry out the services for the
entrepreneurs. More than 1,200 entrepreneurs
received training or other assistance.
Issues such as traditional land tenure practice and
administrative barriers, weak access to credit and
information were also addressed. A web site and
online-business information service are operating.
In view of prevailing communal approaches and
land tenure, the project also advised communities
in the establishment of cooperative business pro-
jects for resource-based processing. For better
coordination and implementation of measures to
promote small-scale entrepreneurship, consulta-
tive committees were established in the provinces,
consisting of the local authorities and private sec-
tor representatives.
Results
• In five provinces of Solomon Islands, more
than 1,000 new employment opportunities
were created during three years through
the start-up of almost 200 new businesses
and the expansion of about 185 existing
businesses.
• In the Federated States of Micronesia, more
than 650 enterprises started or expanded
with the MEDC assistance, creating almost
1,500 new jobs and an estimated investment
of US$ 13.5 million.
24
Issue
Women’s burden is particularly compounded in
post-conflict situations. Frequently, they are the
sole breadwinner of the family as their male fam-
ily members have been either lost or separated in
the war, fled or jailed. Their immediate needs for
sustaining the family mount tremendously when
the supply of goods and services ceases and tra-
ditional community help schemes collapse due to
the restricted mobility and security.
In war torn areas of Rwanda, it becomes a criti-
cal issue to provide women and widows with
means to reassure their proactive role in com-
munity development and to support their fami-
lies’ well-being. Due to the devastating situation
after 1994, their need for improved and sustain-
able business operation has become even more
critical as a long-term solution to sustainable
livelihood. It was necessary to restore women’s
self-help initiatives and increase their business
potential, especially in small food processing.
Solomon Islands: A community-based
business venture
RWANDA:
Strengthening the role of women entrepreneurs
in a post conflict situation
Strategy
A careful analysis was conducted on the socio-
economic environment of the villages where
women run a business. Cultural, religious and eth-
nic composition of the community were analysed
together with the physical and social infrastruc-
ture, market access and gender division of labour.
Existence of any groups of displaced people as
well as returning soldiers in the community was
reviewed in order to avoid an imbalanced distri-
bution of benefits and power structure.
The project targeted women already engaged in
some form of processing activities, such as dairy,
fruit and vegetable products in view of the
importance of this sector for improved food
security in the communities. Trainers were
selected from the group of specialists working
in the business. Bank officers and field exten-
sion officers were invited to run a series of mock
consultation sessions with the women to discuss
their business plans.
By getting to know each other and sharing their
business experiences and problems in ethnically
mixed groups, women became aware of the need
to reconcile efforts to strengthen their self-help
initiatives and networks in the communities.
Results
• Some 40 women entrepreneurs were trained
in dairy products and fruit and vegetable
processing in Byumba and Kigali Rural
Prefectures. Ten of them obtained credit from
local development banks for expanding their
business and two of them successfully mar-
keted their products into the urban market
in Kigali.
• Trained women entrepreneurs started playing
the role of a local adviser to fellow entre-
preneurs at their own settings—a network
was thus established among women entre-
preneurs to share information, resources and
equipment to produce food products.
• Some 26 trainers were trained in the organ-
ization of skill training for women entrepre-
neurs and 23 of them went through refresher
training courses. More than half of them
belong to local NGOs and institutions.
25
Rwandan entrepreneurs work together
in dairy production
Issue
Whereas most students look for jobs after
leaving secondary schools, some go further on
to a vocational school in order to acquire spe-
cific technical skills. Once these young people
are in the labour market, they learn about busi-
ness on-the-job and there are few opportuni-
ties to systematically learn about business.
In an environment where almost half of the
population is under 15 years old and most of
them have to find jobs in the private sector,
knowing the basics of business at an early age
is an advantage. It stimulates the students of
secondary schools to associate academic sub-
jects in concrete terms and is useful for
students in vocational schools in order to asso-
ciate their technical skills with overall business
concepts.
A large number of entrepreneurs build up
savings while they work as employees in order
to start their own business. Therefore, it is
important that the young people develop a
notion of the private sector and entrepre-
neurship before entering the job market. The
Education White Paper (1992) of the Govern-
ment of Uganda aims at putting in place an
education system to produce manpower, which
will help create employment opportunities,
support modernization of agriculture, start
industries and contribute to rapid economic
growth and transformation.
Strategy
The UNIDO Project has introduced entrepre-
neurship curricula to secondary schools and to
a vocational training centre.
For secondary schools, the curriculum was devel-
oped for the classes of 13-18 year old students,
and the Ministry of Education approved it to
become an official course. UNIDO assisted the
National Curriculum Development Commission
(NCDC) in developing the textbooks and trained
the instructors. The curriculum has been intro-
duced in 10 schools with 5,000 students for a
pilot operation since July 2002. So far, school-
masters, instructors, students and parents are
happy with the pilot phase.
The Nakawa Vocational Training Institute (NVTI)
located in Kampala thought it was useful
to combine the vocational training with entre-
preneurship training. NVTI hoped that some
students would become interested in starting
their own business after some years of
employment by using the vocational skills
obtained. UNIDO developed the entrepreneur-
ship training curriculum for NVTI targeting the
students of 19-22 years old and trained the
instructors.
26
UGANDA:
Preparing youth for entrepreneurship—curriculum
development
Secondary school students in Kampala taking
an entrepreneurship development course
Issue
Promoting artisan craft development for export
markets can create job and income opportunities
in rural areas. However, the preservation of tradi-
tional culture is often neglected in this under-
taking. This in turn affects the livelihoods of the
artisans and their families and ignores export
potential based on a strong cultural reference.
Craftspeople are often unaware of the possibil-
ities to export, mostly due to a lack of contacts.
In addition, artisans are frequently not organ-
ized well enough to realize their potential
capacity of production and the quality of prod-
ucts is often not sufficiently high to meet for-
eign market needs.
The Government of Viet Nam has recognized the
need to reconcile the preservation of traditional
artisan crafts and cultural heritage with effective
marketing efforts to enter into export markets.
Strategy
UNIDO has conducted various types of technical
cooperation projects in the field of artisan crafts
development. The project in Viet Nam prepared
policies and guidelines for artisan craft sector devel-
opment and provided a wide range of assistance to
preserve and promote Vietnamese artisan crafts.
One of the crucial issues in the promotion of the
artisan craft sector is improving the technologies
and marketability of products through craft qual-
ity and design upgrading, research and training as
well as the collection and dissemination of infor-
mation. The project therefore included advisory
services for the establishment of an integrated
centre (the so-called “traditional craft village”).
The village will act as a tourist attraction while
containing training and research and development
facilities as well as an exhibition hall.
A training component was included in the pro-
ject during which on-the-job training was pro-
vided to artisans in order to improve the quality
of selected crafts.
Furthermore, the project carried out a state-of-
the-art survey on minority tribes’ artisan crafts
in the context of rural and mountainous village
development. The survey put forward a strong
need to elaborate the future development
visions for mountainous tribes’ traditional
craft promotion. Experiences were disseminated
through seminars and workshops.
Results
• The Ministry of Education has approved the
entrepreneurship curriculum materials for
secondary schools as an official curriculum.
Over 5,000 students at secondary schools
started to take the entrepreneurship curricu-
lum during the first pilot year.
• NVTI has approved the entrepreneurship
curriculum and has established a specialized
department for the entrepreneurship-train-
ing programme. Some 270 students are
also taking the entrepreneurship course at
NVTI. It is expected that the average
annual enrolment in future will be on a
similar level.
27
VIET NAM:
Establishing a “traditional craft village”
for export promotion
Results
• Policy recommendations for promotion of
traditional crafts were adopted by the
Government of Viet Nam and reflected in the
Prime Minister’s decision on the promotion
of rural industrial development in November
2000.
• The project provided the conceptual founda-
tion for the “traditional craft village” centre.
The land with 7.2 ha has been secured for the
establishment of the proposed village includ-
ing a training centre and exhibition hall.
• The specific requirements for quality
improvement for export promotion have been
clearly recognized by policy makers and arti-
sans. The Government has placed a high
development priority on training of national
designers and craft development coordina-
tors. Training programmes have been con-
ducted to improve the quality of products to
meet foreign market needs.
• A master plan on artisan craft development
for rural development is being carried out to
formulate the long-term detailed develop-
ment strategies.
28
Issue
Women entrepreneurs in Morocco are often
faced with a lack of operational and manageri-
al skills resulting in low productivity and
competitiveness. Cultural constraints are an
additional obstacle that inhibit the efficient
conduct of business for women. The resulting
loss of productivity not only has adverse effects
on their income but also on economic growth.
Some of the most promising sectors for the
Moroccan economy and those in which women
are the most numerous can be found in the
north of Morocco, in one of the most disad-
vantaged regions of the country. However, inef-
ficient production mechanisms and a lack of
managerial skills have resulted in a loss of pro-
ductivity and income for women entrepreneurs.
This is particularly true for traditional weaving,
olive oil production as well as industrial
The image of the “Traditional Craft Village”
MOROCCO:
Promoting productivity improvements
in rural women’s businesses
processing of figs, prunes, medicinal and aro-
matic plants. In the past, traditional weavers
exclusively used artificial fibres, thus attaining
only low prices for their products. Almost 20 per
cent of olive oil was lost due to inefficient pro-
duction methods and the high acidity in the oil
was hazardous to the health of the consumers.
No processing of figs and prunes took place. The
fruits thus had to be sold on local markets at
low margins or perished quickly.
Strategy
UNIDO’s project aimed to enhance the competi-
tiveness of enterprises managed by women. As
a first step, the project attempted to make
women aware of how they can improve their
production and thus their income. They are then
trained in both business management and pro-
duction techniques. The trainers are either mem-
bers of women’s groups or of existing public and
private support institutions, which have been
assisted by UNIDO in improving their capacity
to provide services to women entrepreneurs.
Two types of training are currently offered
by the project: (a) training of trainers with
the simultaneous creation of a network of peo-
ple skilled in areas such as economic activity
identification, information provision, business
management and marketing, who will be able
to follow up on the women they train and
(b) direct training of women. Trainers are in
regular contact with women’s groups to iden-
tify the exact needs of these women and to
adapt the courses accordingly. A third type of
training in formation of associations and in
the administration of cooperatives is being
introduced.
A fundamental element of the training is the
improvement of production techniques. At a pilot
training unit, the project provides training on
new methods using locally available equipment.
In the traditional weaving component of the
project, women learn how to diversify their
products, how to work on subcontract and to
use natural fibres in order to increase the export
potential of their products.
The olive oil component has been assisting
women’s cooperatives and groups to improve
production methods and the quality of the oil.
Course participants have learned how to use a
mobile unit that increases production efficien-
cy, techniques that reduce the acid content of
the oil as well as waste management. The
women have also received training in classifica-
tion of the produced oil, in quality control and
marketing. Several trainers have already repli-
cated the training in different rural areas.
The project component, concentrating on the pro-
cessing of figs, prunes, medicinal and aromatic
plants, focuses on drying of the products, packag-
ing and marketing. The equipment was developed
by UNIDO in collaboration with the University of
Vienna and is also being used in other projects.
Results
• The project has so far provided comprehen-
sive training, including coaching in produc-
tion, business management and marketing,
29
High quality for competitive products
to 339 women (traditional weaving:
60 women, olive oil production: 156 women,
processing of figs and prunes: 123 women).
• The training in the weaving component of
the project resulted in the participation
of some of the participants in trade fairs.
As a result, one cooperative has doubled its
income.
• About a dozen new weaving businesses
have so far been started as a result of the
training.
• As a part of the coaching programme of the
olive oil component of the project, a pilot asso-
ciation has received assistance in quality con-
trol, in business and financial management, in
the preparation of a label, in registering their
trademark, in promoting the products and in
the procurement of packaging material.
• The project is creating a critical mass of
trainers (both technical and managerial) who
are staff of local support institutions as well
as a network among these institutions, local
NGOs and credit institutions.
30
Issue
Women entrepreneurs see the establishment of
a productive business as a means to improve
their status in society as well as their family’s
standard of living and to serve their community
by creating employment opportunities. However,
due to a lack of technical skills, confidence,
strong individual involvement and the willing-
ness to take risks, women are often unable to
establish and sustain successful businesses.
In Kenya, women are the main food producers
and small farmers of the country, yet their poten-
tials remain largely untapped due to unequal
access to resources and the lack of support serv-
ices for women’s economic activities. Women
operating in food processing in Murang’a and
Kilifi districts, where large proportions of the pop-
ulation live in absolute poverty, face several major
constraints. These include their inability to judge
the profitability of their operations due to a lack
of basic accounting skills, insufficient technical
and business management skills as well as socio-
cultural constraints.
Strategy
The project aimed at the socio-economic
empowerment of women in the food processing
sector in Murang’a and Kilifi districts by assist-
ing them in their active search for business
opportunities. New technical skills, basic com-
puter literacy, business start-up assistance,
improved financial and business management as
well as the establishment of wider marketing
networks are among the services offered. In con-
trast to projects focusing solely on technical
skills upgrading, this project assists women in
strengthening their role in society and their con-
tribution to the community. This is achieved
through self-confidence building, information
provision on HIV/AIDS and, if required, through
functional literacy programmes. Training in con-
ducting self-assessment enhances women entre-
preneurs’ competitive thinking.
By facilitating women’s access to tools and skills
to improve, monitor and evaluate their progress
as entrepreneurs, the project enables them to
set goals for themselves and to achieve their
KENYA:
Socio-economic empowerment of women entrepreneurs
business objectives, both individually and by
working in groups.
Women entrepreneurs are encouraged to organ-
ize themselves in a business association. Thus,
they can get into touch with like-minded
women, exchange ideas and take part in policy
preparation processes that determine the future
of micro and small-scale enterprises.
Results
• A total of 170 women have been integrated
into the project so far. Feedback received from
participants indicates high satisfaction rates.
• In general, interest in business has increased
in the course of the training and women
developed awareness of the essential role of
personal initiatives and self-confidence to
succeed in business.
• Most of the participants would like to start
their own business or improve already existing
ones. Women felt that their self-confidence as
businesswomen has been enhanced. So far,
approximately 70 women have started their
business with the help of the programme and
have, on average, generated employment pos-
sibilities for two to three persons.
• Several of the women entrepreneurs employ
youngsters to market and distribute their
products by bicycle, thereby adding to
employment creation.
• Women entrepreneurs participating in the
project have understood the importance of
pricing and quality standards of raw mate-
rials, thus enhancing their bargaining power
when dealing with middlemen or larger
enterprises.
• Women entrepreneurs in one region felt so con-
fident after their training that they successfully
negotiated a market-sharing arrangement with
the commercial village bakery.
• Women envisage using the skills acquired to
improve the diet of their families and to con-
tribute to food hygiene in the country. They
consider serving the community by helping
train other women in food processing and
preservation.
31
Empower Women!
For information on the UNIDO Programme “Rural and Women Entrepreneurship Development”,
please contact:
Director
Small and Medium Enterprises Branch
A-1400 Vienna, Austria
Tel: (+43-1) - 26026-4820/4821
Fax (+43-1) – 26026-6842
Email: [email protected]
Web site: www.unido.org
Photography: UNIDO; Z. Kiruthu, E. Nanyonjo, H. Uesugi, T. Zirngibl
Printed on environmentally friendly paper.
32
UNITED NATIONS INDUSTRIAL DEVELOPMENT ORGANIZATION
Small and Medium Enterprises Branch
Programme Development and Technical Cooperation Division
Vienna International Centre, P.O. Box 300, A-1400 Vienna, Austria
Telephone: (+43-1) 26026-4820 or 4821, Fax: (+43-1) 26026-6842
E-mail: [email protected], Internet:http://www.unido.org
Printed in Austria
V.03-81817–April 2003–1,000
doc_513185211.pdf