Village Enterprise

Last updated
Village Enterprise
Founded1987 (1987)
FocusEconomic development
Location
Area served
Africa
Method Graduation Approach
Key people
  • Dianne Calvi (CEO)
  • Katie Boland (Chair of the Board of Directors)
  • Brian Lehnen (Co-founder)
  • Joan Hestenes (Co-founder)
Staff
500+
Website www.villageenterprise.org

Village Enterprise is a 501(c)(3) nonprofit organization that equips the most vulnerable populations living in extreme poverty in rural Africa to launch sustainable businesses and break the cycle of poverty. [1]

Contents

As of 2024, Village Enterprise has helped nearly 300,000 people living in extreme poverty [2] in Uganda, Kenya, Rwanda, Ethiopia, the Democratic Republic of the Congo, Congo-Brazzaville, Mozambique, and Tanzania to become entrepreneurs, [1] and 83% of these entrepreneurs are women. [2]

How it works

The Village Enterprise poverty graduation model is a one-year graduation approach that targets households living below the international poverty line and provides: access to a savings group, business training, startup cash, and business mentoring. The startup cash provided is a seed capital grant ranging from US$180 to US$300 given to groups of three entrepreneurs who launch a business together. [3] The positive impacts of the graduation approach and the rigorous evidence that supports it were highlighted by Nicholas Kristof in his 2015 New York Times article “The Power of Hope is Real.” [4]

A randomized controlled trial published in 2022 by IDinsight found the Village Enterprise program had a positive and statistically significant impact on both indicators it measured: monthly consumption and net assets. [5] [6] It also estimated the Village Enterprise program to have a 534% lifetime benefit-cost ratio, meaning for every $1 invested into the program, $5.34 of income is generated by their entrepreneurs. [7] A previous randomized controlled trial by Innovations for Poverty Action that was published in 2018 and written about in Vox found that the Village Enterprise program led to increases in consumption, assets, income, as well as improvements in nutrition and subjective wellbeing of business owners and their families. [8] [9]

History

Village Enterprise was co-founded in 1987 by Brian Lehnen and Joan Hestenes. [10]

Village Enterprise hired its first outside CEO, Dianne Calvi, in 2010. Because of her impact at Village Enterprise, Calvi was honored with the President’s Award for the Advancement of the Common Good from Stanford University in 2023. [11]

In 2017, Village Enterprise launched a Development Impact Bond (DIB), the first for poverty alleviation in sub-Saharan Africa. When the results were released in 2022, the Village Enterprise DIB was shown to have succeeded, despite being implemented during the Covid-19 pandemic. The randomized controlled trial conducted by IDinsight estimated the program would generate lifetime impacts of more than $21 million for communities, around four times the overall cost of the project. [6]

Related Research Articles

<span class="mw-page-title-main">Mercy Corps</span> American humanitarian aid NGO founded 1979

Mercy Corps is a global non-governmental, humanitarian aid organization operating in transitional contexts that have undergone, or have been undergoing, various forms of economic, environmental, social and political instabilities. The organization claims to have assisted more than 220 million people survive humanitarian conflicts, seek improvements in livelihoods, and deliver durable development to their communities.

<span class="mw-page-title-main">BRAC (organisation)</span> International development organization based in Bangladesh

BRAC is an international development organisation based in Bangladesh. In order to receive foreign donations, BRAC was subsequently registered under the NGO Affairs Bureau of the Government of Bangladesh. BRAC is the largest non-governmental development Organisation in the world, in terms of the number of employees as of September 2016. Established by Sir Fazle Hasan Abed in 1972 after the independence of Bangladesh, BRAC is present in all 64 districts of Bangladesh as well as 16 other countries in Asia, Africa, and the Americas.

<span class="mw-page-title-main">United States African Development Foundation</span> Agency of the United States government

The U.S. African Development Foundation (USADF) is an independent U.S. government agency established by Congress in 1980 to invest directly in African grassroots enterprises and social entrepreneurs. USADF's investments aim to increase incomes, revenues, and jobs by promoting self-reliance and market-based solutions to poverty. USADF targets marginalized populations and underserved communities in the Sahel, Great Lakes, and the Horn of Africa. It partners with African governments, other U.S. government agencies, private corporations, and foundations to achieve transformative results.

An individual development account (IDA) is an asset building tool designed to enable low-income families to save towards a targeted amount usually used for building assets in the form of home ownership, post-secondary education and small business ownership. In principle IDAs work as matched savings accounts that supplement the savings of low-income households with matching funds drawn from a variety of private and public sources.

Trickle Up is a nonprofit international development organization that helps women living in extreme poverty by offering programs rooted in the Graduation Approach to support sustainable livelihoods and pathways out of poverty. Trickle Up's programs include seed capital grants, technical skills training, life skills training, coaching, and other linkages to existing government programs or services relevant to the participants' livelihood activity.

One Acre Fund is a social enterprise that supplies smallholder farmers in East Africa with asset-based financing and agriculture training services to reduce hunger and poverty. Headquartered in Kakamega, Kenya, the organization works with farmers in rural villages throughout Kenya, Rwanda, Burundi, Tanzania, Uganda, Malawi, Nigeria, Zambia, and Ethiopia.

<span class="mw-page-title-main">Jessica Jackley</span> American entrepreneur (born 1977)

Jessica Erin Jackley is an American entrepreneur who co-founded Kiva and later ProFounder, two organizations that promote development through microloans.

<span class="mw-page-title-main">TechnoServe</span> Nonprofit organisation in the USA

TechnoServe is an international nonprofit that promotes business solutions to poverty in the developing world by linking people to information, capital and markets. It is a registered 501(c)(3) based in Washington, D.C., with over 1,540 employees across 29 countries worldwide.

<span class="mw-page-title-main">Abdul Latif Jameel Poverty Action Lab</span> Global research center working to reduce poverty

The Abdul Latif Jameel Poverty Action Lab (J-PAL) is a global research center based at the Massachusetts Institute of Technology aimed to reducing poverty by ensuring that policy is informed by rigorous, scientific evidence. J-PAL funds, provides technical support to, and disseminates the results of randomized controlled trials evaluating the efficacy of social interventions in health, education, agriculture, and a range of other fields. As of 2020, the J-PAL network consisted of 500 researchers and 400 staff, and the organization's programs had impacted over 400 million people globally. The organization has regional offices in seven countries around the world, and is headquartered near the Massachusetts Institute of Technology in Cambridge, Massachusetts.

The phrase women in business refers to female businesspeople who hold positions, particularly leadership in the fields of commerce, business, and entrepreneurship. It advocates for their increased participation in business.

<span class="mw-page-title-main">Sama (company)</span> American company

Samasource Impact Sourcing, Inc., formerly known as Samasource and Sama, is a training-data company, focusing on annotating data for artificial intelligence algorithms. The company offers image, video, and sensor data annotation and validation for machine learning algorithms in industries including automotive, navigation, augmented reality, virtual reality, biotechnology, agriculture, manufacturing, and e-commerce. Sama's mission is to expand opportunity for low-income individuals through the digital economy. One of the first organizations to engage in impact sourcing, Sama trains workers in basic computer skills and pays a local living wage for their labor.

The Center for Effective Global Action (CEGA), earlier known as the Center of Evaluation for Global Action, is a research network based at the University of California that advances global health and development through impact evaluation and economic analysis. The Center's researchers use randomized controlled trials and other rigorous forms of evaluation to promote sustainable social and economic development around the world.

GiveDirectly is a nonprofit organization operating in low income areas that helps families living in extreme poverty by making unconditional cash transfers to them via mobile phone. GiveDirectly transfers funds to people in Bahamas, Bangladesh, DRC, Liberia, Kenya, Malawi, Morocco, Mozambique, Nigeria, Rwanda, Togo, Turkey, Uganda, USA, and Yemen.

The impact of microcredit is the study of microcredit and its impact on poverty reduction which is a subject of much controversy. Proponents state that it reduces poverty through higher employment and higher incomes. This is expected to lead to improved nutrition and improved education of the borrowers' children. Some argue that microcredit empowers women. In the US and Canada, it is argued that microcredit helps recipients to graduate from welfare programs. Critics say that microcredit has not increased incomes, but has driven poor households into a debt trap, in some cases even leading to suicide. They add that the money from loans is often used for durable consumer goods or consumption instead of being used for productive investments, that it fails to empower women, and that it has not improved health or education.

<span class="mw-page-title-main">Yunus Social Business</span>

Yunus Social Business (YSB) is an impact-first organisation with a non-profit impact-investing arm, Yunus Funds, and a corporate social-innovation consulting arm, Yunus Corporate Innovation. Both business units are based on furthering the concept of social business, as developed by YSB Co-founder and Chairman Professor Muhammad Yunus.

Hand in Hand International is a registered non-profit organisation based in London, UK. It is part of the Hand in Hand network, whose shared vision is to fight poverty through job and business creation. Hand in Hand was founded by Percy Barnevik and Dr Kalpana Sankar.

Unconditional cash transfer (UCT) programs are philanthropic programs that aim to reduce poverty by providing financial welfare without any conditions upon the receivers' actions. This differentiates them from conditional cash transfers where the government only transfers the money to persons who meet certain criteria. Unconditional cash transfers have developed on the premise that giving cash to citizens allows them to have autonomy over their own lives.

Digital Opportunity Trust (DOT) is a Canadian charitable organization and social enterprise that provides technology, entrepreneurship and leadership training programs for young people in East Africa, the Middle East, Latin America, and Canada. The organization's headquarters are in Ottawa, Ontario, with local operations around the globe. Since the organization was founded in 2001, DOT has directly affected more than 6,000 young people worldwide, who have gone on to reach over 1 million of their fellow community members. More than 90% of alumni, reportedly secure employment or start their own businesses within six months of completing DOT programming.

<span class="mw-page-title-main">Uganda National Entrepreneurship Development Institute</span>

The Uganda National Entrepreneurship Development Institute (UNEDI) is a privately owned national resource development institution in Uganda whose focus area is entrepreneurship education, training and research. The institute provides training techniques, faculty support, consultancy, research as well as teaching and development of entrepreneurship training materials.

<span class="mw-page-title-main">The BOMA Project</span>

BOMA  is a U.S. nonprofit organization and Kenyan NGO that works to provide poor women living in the arid and semi-arid lands of Northern Kenya with the educational, financial, and technological resources to lift themselves out of poverty. Its mission is to “empower women in the drylands of Africa to establish sustainable livelihoods, build resilient families, graduate from extreme poverty and catalyze change in their rural communities.”

References

  1. 1 2 "Business Daily - Uganda's refugee women turned entrepreneurs - BBC Sounds". www.bbc.co.uk. 5:30. Retrieved 2024-07-02.
  2. 1 2 "Business Daily - Uganda's refugee women turned entrepreneurs - BBC Sounds". www.bbc.co.uk. 9:40. Retrieved 2024-07-12.
  3. "Business Daily - Uganda's refugee women turned entrepreneurs - BBC Sounds". www.bbc.co.uk. 5:50. Retrieved 2024-07-12.
  4. Kristof, Nicholas (2015-05-21). "Opinion | The Power of Hope Is Real". The New York Times. ISSN   0362-4331 . Retrieved 2024-02-16.
  5. "Village Enterprise Development Impact Bond Evaluation Findings". IDinsight. Retrieved 2024-02-16.
  6. 1 2 Saldinger, Adva (2022-03-08). "Development impact bond in Uganda, Kenya hits targets despite COVID-19". Devex. Retrieved 2024-02-16.
  7. McManus et al. “Can poverty graduation programs make poor households more resilient during shocks? Evidence from Kenya and Uganda during COVID-19”. p. 23
  8. "The Impact of Variations of Ultra-Poor Graduation Programming in Uganda". Innovations for Poverty Action. Retrieved 2024-02-16.
  9. Matthews, Dylan (2018-10-15). "Giving out cash is a great way to fight poverty. This approach might be even better". Vox. Retrieved 2024-02-16.
  10. Maslow on Management, Abraham Maslow, John Wiley & Sons, Inc., p. 138
  11. Adami, Chelcey (2023-06-05). "Stanford alumni honored for work advancing the common good". Stanford Report. Retrieved 2024-02-16.