February 21

Microenterprise graduation leads to higher consumption, asset ownership

A one-year microenterprise graduation program targeting the ultra-poor in rural Africa offers a cost-effective way to tackle extreme poverty, according to preliminary results of a new study released in Kampala on Thursday.

These preliminary results suggest that Village Enterprise’s integrated “graduation” model—comprised of targeting, training, mentorship, savings groups, and a modest cash transfer—increased assets and consumption, as well as subjective well-being and nutrition, with a full cost-recovery of the program estimated at three to four years.

“Helping the ultra-poor escape extreme poverty is a global priority, but policymakers are faced with competing ideas about the best way to accomplish this,” said Village Enterprise’s CEO Dianne Calvi.

Photo courtesy of Rod Waddington.

Source: The Independent (link opens in a new window)

entrepreneurship, global development, microenterprise, poverty, poverty alleviation, SMEs, social impact, social innovation