Tag Archives: entrepreneurship

Broadband Internet Access and Development in Latin America and the Caribbean

internet_peru

By Gustavo Guerrero

While broadband internet has become an essential business tool, it has been slow to arrive in the areas that need the benefits of development the most – namely rural regions of developing countries. Though there has been some growth over the years, there is still a long way to go. Recognizing this, the Inter-American Development Bank (IDB) released a report showing the effect of broadband internet on the economies of Latin American and Caribbean countries, outlining how countries can improve their telecommunications infrastructure.

Nationwide high-speed internet access is something that many in the developed world take for granted. However, in the developing world there is a different story. In Nigeria, low broadband penetration has been cited as hindering the development of e-commerce in Africa’s largest economy. Similar examples are present all across the developing world.  The potential for growth is there, waiting, but it cannot be realized until broadband penetration and speed are improved.

Having a web presence is now almost a prerequisite for becoming a successful business.  The specific type of web presence can range from simply listing basic business contact information and operating hours, to having an online sales portal. Being online offers many benefits with very few, if any drawbacks. While most businesses in the developed world have adapted to this new environment, businesses in many parts of the world lack basic internet access that would allow them to grow and thrive.

The report, Socioeconomic Impact of Broadband in Latin American and Caribbean Countries, consists of two major components which aim to promote broadband internet connection in the region.  The first is an econometric model for LAC countries which helps determine how increases to broadband penetration could affect their GDP.  The second is a set of recommendations designed to help governments best improve their infrastructure.

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Study Shows Lack of Ideas is Not What’s Holding Women Entrepreneurs Back

 

south asian women training

Participants at a recent training workshop for South Asian women’s business associations in Kathmandu.

African women are almost twice as likely to have a new business idea they would like to develop than women in Europe and the United States, according to a new study commissioned by Dell. This is further proof of what many of us already know – that there is no lack of ideas and energy among women entrepreneurs in developing countries. It is institutional barriers and local economic conditions that primarily hold back women who are looking to start a business.

CIPE and its partners have supported women entrepreneurs in a number of countries to make significant gains in increasing their role in the economy and their input to public policy. For example, women’s business associations in Nigeria have successfully advocated to increase their role in a national conference to review the nation’s governing institutions.

In Pakistan, CIPE and its partners worked to reform the National Trade Organizations Ordinance to allow women to form their own associations and improve women’s representation on already established chamber boards. The Bangladesh Women Chamber of Commerce and Industry has successfully advocated for local and national level policies to improve access to credit for women entrepreneurs. And in Papua New Guinea, a new CIPE-supported women’s business association helped to establish a “women’s desk” at the largest commercial bank in the country to make it easier for women entrepreneurs to obtain bank loans.

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Why Free Enterprise Matters for Democracy in Venezuela

By Gustavo Guerrero and Laura Boyette

The economic and political climate in Venezuela today has grown to crisis levels as the government consolidates power and limits the freedoms of entrepreneurs and the private sector through harmful legislation and the nationalization of private businesses. In the face of these challenges, the Federation of Chambers and Associations of Commerce and Production (FEDECAMARAS) continues working hard to advocate for policies that will grow the Venezuelan economy and provide more opportunities to young entrepreneurs, both of which are essential to creating a brighter future for Venezuela. In May Jorge Roig, President of FEDECAMARAS, sat down for an interview with CIPE and discussed the role of the private sector and its advocates in Venezuela.

Roig stressed the importance of cooperation between business, society, and government, saying that without engaging these groups in dialogue, substantive change will not occur. In recent years, the Chávez and Maduro governments have depicted the private sector and organizations such as FEDECAMARAS as the source of Venezuela’s economic problems, claiming they have political aspirations. However, Roig defined the role of FEDECAMARAS very clearly – not to be a political power, but rather to influence it on behalf of entrepreneurs. Furthermore, organizations such as FEDECAMARAS not only protect free enterprise, but also support democratic values and act in the best interests of the society as a whole.

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Enriching the Future: Creating Opportunities for Youth in the Middle East

Doha Forum Picture

Through high-level discussions of democracy, development, and free trade, the 2014 Doha Forum held from May 12 to 14 sought to find solutions to key economic challenges facing the Middle East through international collaboration and entrepreneurship. Among those key challenges is job creation.

Co-hosted by Qatar and UCLA’s Center for Middle East Development, the theme of this year’s forum was “Enriching the Middle East’s Economic Future.” CIPE’s Regional Director for the Middle East and North Africa (MENA) Abdulwahab Alkebsi and a group of CIPE’s partners participated in the forum.

With 30 percent of the Middle East’s population between the ages of 15 and 29, creating employment opportunities for young people remains a top economic priority for the region. CIPE and its partner organizations highlighted the many ways in which the private sector can address this challenge and enrich the Middle East’s economic future.

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Learning to Start a Business in Papua New Guinea

PNG_women_workshop

“The recent workshop by CIPE on the 19th of May 2014 in Port Moresby in Papua New Guinea is important as firstly puts our vision into action but most importantly it gave a boost for those women to take a bold step towards starting a business or “enterprise”. The women learnt how to transform their ideas or hobbies into a business. They learnt the importance of innovation, implementation, ability to market products and to understand numbers in a business environment. The breakaway discussions and activities were not only fun but useful in emphasis important business skills like to know how to negotiate pricing in a business time management and knowing specifications before you start dealing with suppliers. So many positive feedback from the participants. Can’t wait for the next one.” – Janet Sios, Interim Vice President PNGWCCI

CIPE is working with a newly established women’s chamber of commerce in Papua New Guinea (PNG) to become a strong voice of women-owned businesses a country that is known for its unequal treatment of women.

According to the World Bank’s Doing Business 2014 report, PNG is getting worse in areas such as Starting a Business (101st in the world, down 9 places from 2013) and Getting Credit at 86th in the world (down 4 spots from 2013). In such an environment, it is extremely challenging for women to start an entrepreneurial initiative. This forces many women to remain in the informal sector.

During the course of recent capacity building sessions held in May 2014, CIPE organized a workshop for Papua New Guinea Women Chamber of Commerce members titled “Starting Your Own Enterprise.” CIPE Deputy Country Director for Pakistan, Hammad Siddiqui led the session that covered basic concepts of starting a business, challenges for small businesses, analyzing market opportunities, etc.

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Business Loan Program for Pakistan Youth is Only a First Step

State-Bank-Of-Pakistan-

Youth is a vital asset for every country`s progress. Pakistan has incredible youth but due to issues like shortage of funds, political unrest, and the lack of recognition and platforms to share ideas, they become helpless. According to the International Labor Organization’s recently published Global Employment Trends Report, Pakistan’s current unemployment rate of 5.17 percent will likely rise to 5.29 percent in 2014. The true unemployment rate for youth is much higher still.

The government has  recently begun he process of offering special loans worth Rs. 3.7 billion ($37 million) to help and empower the country`s youth. This was the first round of applications for the Business Youth Loan Programme which the premier announced last year.

What will the benefits of this program be? The question has no answer at this time because under the present strict conditions of screening and filing the loan application, young people are disappointed and reluctant to apply. 38,000 applications have been filed across the country: 28,000 from Punjab, 600 from Islamabad, 3,500 from Khyber Pakhtunkhwa, 100 from  Gilgit Baltistan, 500 from Azad Kashmir, and 3,000 from Sindh. Out of these 38,000 applications, only 6,217 (16 percent) were approved for balloting and 5,399 applicants found their names in balloting.

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Can Kenya’s Government Replicate Ports Success to Create Jobs?

Mombasa Port. (Photo: Business Daily)

Mombasa Port. (Photo: Business Daily)

By Ben Kiragu

One of the things Kenya’s new government succeeded in doing within its first year was to reduce the number of days it takes to move cargo from the Mombasa port to Malaba from 18 to 8 days — a 56 percent improvement in just 6 months. This is a major achievement which has boosted commercial relations with Uganda and other neighboring landlocked countries, forestalled competition from alternative transit routes, and ultimately reduced the cost of doing business, therefore improving economic growth in the region. How did the government accomplish this?

First of all, the president set up a cabinet subcommittee of Cabinet Secretaries dealing with the Northern Corridor — the transit links connecting Kenya’s landlocked neighbors to the sea — which reported to him during weekly cabinet meetings.  Second, administrative changes were instituted; all agencies involved in the process including KRA, KEPHIS, KEBS and KMA were instructed to work under the authority of the Kenya Ports Authority and relocated to Mombasa port. Also all government agencies were to take orders from KPA and finalize operations in Mombasa without reference to any other authority. Finally, the process of clearing was digitized and weighing bridges were modernized.

What are the lessons learnt from this? There was very clear knowledge, analysis, and understanding of the problems and where the bottle necks lay, therefore solving the problem was undertaken with almost surgical precision. There was very little need for new financial resources or the construction of major physical infrastructure. This is one of the key reasons why most projects in Kenya are delayed, as they wait for budgetary allocations or get into procurement bureaucracy and controversy as we have come to see especially as a result expanded democratic space. Lastly  and probably most important there was clear and dynamic leadership, the president led from the front on this one and delegated to decisive and action-oriented managers. The impact is there for all to see.

Creation of jobs was one of the rallying calls of the Jubilee campaign with 1 million jobs promised per year, but so far no major job creating initiative has borne fruit. The government seems to be waiting for big projects such as the Standard Gauge Railway and the Galana-Kulalu irrigation project to create jobs; one wonders if this will work, as time is clearly not on their side especially given the issues associated with some of these projects. My recommendation: why not replicate the cargo movement magic to prune low-hanging fruits and achieve quick wins in job creation by creating an enabling environment for micro and small enterprises (MSEs)?

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