Empowering small businesses in Madagascar
Micro and small businesses are Madagascar’s economic backbone. However, a deficit of knowledge, skills and capacity in entrepreneurs means their growth is often constrained and their activities mostly precarious. Since 2017, we have been supporting IECD and its partner Madagascar Enterprise Development to offer management training and individual coaching to current and future micro-entrepreneurs in Antanarivo. Building on the encouraging results of our initial grant, this follow-up programme aims to empower 700 start-up entrepreneurs and small business owners to fully assess the feasibility of and strengthen their business ventures. The aim is to make the businesses more profitable and sustainable, while ultimately improving the living conditions of the entrepreneurs, their families and employees.
Research suggests that for every $1 invested in small and growing enterprises, $13 of value is generated within the local economy, thus making them a powerful platform for lifting communities out of poverty.
In Madagascar, micro-enterprises operating in the arts and crafts, trade and local service sectors represent the overwhelming majority of non-agricultural informal employment. However, a lack of knowledge, skills, and capacity among entrepreneurs means their growth is often constrained and their activities mostly precarious.
Based on concrete case studies, IECD and Madagascar Enterprise Development (MED) have developed a business training programme for micro and start-up entrepreneurs that extends from marketing and sales to finance and market analysis. The programme also offers several hours of personalized support for up to one year after the formal training has been completed. This helps the entrepreneurs develop strategic vision and identify their own solutions to the problems faced by their enterprises.
Breaking entrepreneurs out of the isolation they often experience, the participants join the programme’s Entrepreneur Club upon completion of their training, thereby maintaining links with their tutors and gaining access to learning resources for further expanding their knowledge.
We have been supporting IECD and its partner Madagascar Enterprise Development since 2017. We are renewing our support building on the encouraging results of our first grant.
- 400 small business owners, mainly women, are trained in basic management and able to strengthen their business ventures, making them more profitable and sustainable. The training contributes to improved living conditions for the entrepreneurs, their families and employees.
- 300 start-up entrepreneurs are able to fully assess the feasibility of their business ideas and learn basic management principles that help them stabilise their incomes.
IECD aims to strengthen MED’s operational ability and financial sustainability, helping design a viable economic model that standardises and expands the training offer while ensuring costs are covered.