40% of the 141 million formal microenterprises in developing countries (and many more informal enterprises) lack access to adequate financing and entrepreneur support services, constraining microentrepreneurs’ ability to grow their businesses and create positive economic impact for their families and communities.[i]
GP funds aim to improve the economic position of microentrepreneurs and their families by investing in partners who provide tailored microenterprise loans as well as specialized capacity building to help clients grow their businesses and increase their net incomes.
WHO IS SERVED?
The target demographic is microentrepreneurs living on <$5.50 PPP/person/day.
WHAT IS DELIVERED?
Microentrepreneurs must receive:
- Individual tailored productive use loans to support business growth; AND
- Specialized capacity building tailored to clients’ productive activity, which may take the form of 1:1 business consulting, workshops or courses on topics relevant to client productive activity, and/or in-depth TA programs.
Microentrepreneurs may also receive:
- Networking services;
- Market linkages;
- Access to savings;
WHY IS IT IMPACTFUL?
Household net income increases over time as microentrepreneurs:
- Invest in new, improved, or growing productive opportunities, practices, inputs, technology, and/or assets;
- Increase productivity, efficiency, and/or value of production;
- Reduce financial, legal, and operational risks in their businesses;
- Reach better markets.
[i] SME Finance Forum, MSME Finance Gap 2017, https://www.smefinanceforum.org/sites/default/files/Data%20Sites%20downloads/MSME%20Report.pdf