Feedback Form
Home Features Mastermind Forums About Advertise Blog Network Contact Be An Author

IV. Principle III: Reinforce Microfinance to Advance the African Private Sector

IV. Principle III: Reinforce Microfinance to Advance the African Private Sector

Microfinance and microenterprise are critically linked; microenterprise development is
an essential extension of microfinance schemes. If microfinance is to have a sustainable impact
on poverty eradication, it must eventually scale-up into creating a private sector of entrepreneurs
who function in the formal economy. In other words, microfinance has the potential of
formalizing the informal sector, empowering micro-entrepreneurs to participate and benefit from
the formal economy.

Microfinance can support initiative for direct supply and market linkages to small and
medium businesses targeting promising micro-entrepreneurs in non-traditional, low volume but
high value-added products in potential niche growth areas of the economy. Such an approach
could reach existing micro-entrepreneurs who are seeking to graduate from the survivalist profile
of microenterprises into a more secure and productive foothold of the formal sector of the
economy. It would expose microenterprises to larger enterprises "higher up the chain",
encouraging forward and backward linkages with established companies. Targeted microentrepreneurs
can potentially develop, produce, and perhaps market low-volume but higher profit
products, expand, and take on additional employees, thus scaling-up.

This potential, however, is contingent upon a supportive environment at all level and
among all actors, supporting business incubation and expansion. For example, at the local level,
regulation and standards among MFIs and their respective microenterprises can lend legitimacy
to these initiatives, while networking among MFIs can provide a lobby platform to propel
enterprises stemming from microfinance into the formal economy. MFIs can work together to
ensure that Governments and donors do not support organizations that undermine the market for
microfinance services and microenterprises by subsidizing loans.

At the national and international level, actors can promote legislation, business services,
and infrastructure to enable African micro-entrepreneurs and producers to increase market
opportunities, technical know-how, and management. Government policies are often biased to
the formal and urban sectors of the economy, pre-empting opportunities for informal and microentrepreneurial
initiatives to scale up into the private formal sector. Taxation schemes should be
fair, progressive, and economically efficient, with particular sensitivity to the vulnerable sectors
of the economy which microfinance serve and in which microenterprises operate.





IV Principle III Reinforce Microfinance to Advance the African Private Sector - To learn more about this author, visit United Nations Economic Commission for Africa's Website.

Like this article? Share it with your friends

Article Feedback
 Article Feedback No article feedback found.
  Leave Your Feedback
article feedback

Article Feedback

To learn more about the Evan Elite Author Program please contact us.

About The Author


United Nations Economic Commission for Africa
(Visit United Nations's Website) The United Nations Economic Commission for Africa (ECA) is the regional arm of the United Nations, mandated to support the economic and social development of its member States, foster intra-regional integration, and promote international cooperation for Africa's development.

United Nations Economic Commission for Africa is a Platinum author on EvanCarmichael.com
About The Author

View Author Blog
View Author Blog

View Author Video
View Author Video

Free Downloads


United Nations Economic Commission for Africa's

Complete
List Of
African-Accounts
Articles

Name
Email
If you enjoyed this article, get United Nations Economic Commission for Africa's Complete List of African-Accounts Articles For FREE!

More United Nations Economic Commission for Africa
IV Principle I Prioritize Group Formation and Networking
51 Determinants of diversification in Africa Economic Report on Africa 2007
16 International migration and remittances Economic Report on Africa 2007
Overview IX Economic Report on Africa 2007
34 References Economic Report on Africa 2007
22 Sectoral performance I Economic Report on Africa 2007
22 Sectoral performance II Economic Report on Africa 2007
30 Global Development Challenges for Africa in 2006 Economic Report on Africa 2007
41 Diversification trends at the subregional level Economic Report on Africa 2007
52 Economic growth and diversification Economic Report on Africa 2007
Free Downloads


 
 
 


Evan Elite Authors
Casey Gollan  
Staging Diva  
Dianne Crampton  
Evan Elite Authors

Become An Author
Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details.
Become An Author

Evan's Latest Video
Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media
Evan's Latest Video

Business Opportunities
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"

How to Start An Online Business

Click Here To Learn More
Business Opportunities



Evan's Newsletter
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
Name:
Email:
Evan`s Newsletter

Free Downloads
The Evolution Of Networking Icon The Evolution Of Networking
Federal Antitrust Laws Icon Federal Antitrust Laws
High Quality Sales Leads Icon High Quality Sales Leads
Make Money Online Icon Make Money Online
Powerful Living Icon Powerful Living
Free Downloads - Complete List

Entrepreneur Tools and Guides
Top 50 HR Blogs 2009
Top 50 HR Blogs 2009
Top 50 HR Blogs 2009
 
Guide To ERP Software / Business Management Software
Guide To ERP Software
Business Management Software
 
Entrepreneur Tools and Guides

SEO For Africa
SEO For Africa
Isokan Asoro Benin City, Nigeria,
Isokan Asoro
Benin City, Nigeria
SEO For Africa

If I Were A Startup...
Adam and Matthew Toren , $200k to $3.4 Mil in 3 Years
Adam and Matthew Toren
$200k to $3.4 Mil in 3 Years
Jonathan Voigt, $214k to $507k in 2 years
Jonathan Voigt
$214k to $507k in 2 years
If I Were A Startup... - Complete List

Famous Entrepreneurs
Henry Ford, Ford Motor
Henry Ford
Ford Motor
Jenna Jameson, Club Jenna
Jenna Jameson
Club Jenna
Famous Entrepreneurs - Complete List

Entrepreneur Advice
David Allen, Getting Things Done
David Allen
Getting Things Done
Tom Peters, In Search Of Excellence
Tom Peters
In Search Of Excellence
Entrepreneur Advice - Complete List

Popular Articles
(Premium Authors)

     Promotional products for your company’s anniversary
By jules rosen
     Get Free Publicity Through Community Events
By jules rosen
     Promo Products build recognition for your brand
By jules rosen

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

More Evan Carmichael
More Information