In recent years, the focus on large corporations as the solution to Africa’s poverty has overshadowed the significant impact of micro-entrepreneurs in overlooked regions. While big businesses can bring much-needed resources and investment to these areas, smaller enterprises have proven to be effective in transforming communities and reducing extreme poverty.
Programs aimed at addressing extreme poverty have shown positive outcomes in these areas, with research demonstrating that teaching business skills can lead to a significant increase in household incomes. This, in turn, leads to an increase in annual household consumption and savings, improving people’s health and ability to save for the future. Randomized control trials have also highlighted the long-term success and scalability of these approaches.
While eradicating extreme poverty in Africa is not a singular solution, it requires a comprehensive strategy that integrates proven methodologies with larger businesses to create a resilient and inclusive economic landscape across the continent. Taddeo Muriuki, Chief Government Relations Officer at Village Enterprise in Nairobi, Kenya, emphasizes the importance of recognizing the impact of smaller enterprises on addressing poverty and advocating for a comprehensive approach to development in Africa.