Microenterprise
Technical Areas
USAID focuses on three areas of strategic support for microenterprise
development:
- financial services,
- business development services, and
- enabling
environment.
Financial Services
To grow and prosper, businesses of all sizes and in
all countries need access to financial services. Such
access
is a particular challenge for poor families around
t
he world that need loans, credit, and savings to establish,
sustain, and expand small businesses and microenterprises.
Innovative approaches to serving low income entrepreneurs
and households include finding substitutes for traditional
collateral, promoting flexible repayment schedules,
and
offering a broader range of financial services such
as insurance and flexible savings accounts.
Business Development Services
A variety of organizations offer business development
services (BDS) to help microenterprises increase revenues,
build capacity, initiate new economic activities, or
increase their leverage in the marketplace. USAID however,
supports the development of markets by helping BDS
providers extend services that boost microenterprise
income and
competitiveness. Service providers often need help
to tailor their services to poorer clients. Access
to appropriate
business services enables microenterprises to seize
new economic opportunities and increases the potential
impact
of sustained reductions in poverty levels.
Enabling Environment
A supportive enabling, or policy, environment, including
a favorable business and investment climate, is critical
to successful, sustainable microenterprise development.
USAID supports reform of laws, regulations, and policies
to facilitate the creation and operation of microenterprises
and to expand access to financial and other services
by the underserved poor. This can include helping countries
streamline their business registration process, building
the capacity of microentrepreneurs to work through
independent business associations to advocate for policy
reforms,
and promoting anti-corruption efforts and tax reform.
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