New Grant to Aid Businesses Creating Jobs, Services for Poor
Friday, February 21, 2014
The Asian Development Bank (ADB) and development partners will use a new $3.6 million grant to support around 20 private sector businesses in Asia targeting poor and low-income communities.
“Economic growth has been high in Asia but that hasn’t trickled down to improve living standards of the poorest in most countries,” said Armin Bauer, Principal Economist in ADB’s Regional and Sustainable Development Department. “Private companies are only now slowly recognizing that poor and low income groups are a huge market for goods and services and a good source of employees and talent.”
The grant will help companies develop new business models relevant to the poor and those on low incomes, and assess the social impact of such activities. It will focus on “inclusive businesses,” or enterprises and projects that make both profits and provide goods, services, and jobs for those living on less than $3 a day. Around 60% of Asia’s population is estimated to live on this small sum.