Effective pro-poor economic development programs create the conditions that expand opportunities for individuals, families and communities, reducing poverty by expanding employment and income generation opportunities. One way of achieving this is through micro, small and medium enterprise (SME) development programs.
FIT has been involved in the SME sector for over 20 years. Our approach emphasizes the role of mediating agencies and institutionalizing systems to ensure that SME development activities are integrated with the needs of the local community. Like all development approaches, SME programs contain a number of risks. Approaches that emphasize micro-credit, without considering the needs and challenges faced by borrowers, risk expanding indebtedness among those least able to repay loans. Similarly, encouraging new businesses without an understanding of the local context and community issues can result in the development of privileged classes among the poor, breaking down social cohesion and community. Income is just one measure of poverty; it is a mistake to assume that raising income levels alone will result in sustainable human development.
FIT’s programs focus on building sustainable capacities for economic reform by supporting regional consultations, developing comprehensive work plans related to local training needs, and providing management skills training to address systemic constraints and achieve program reforms.
Women’s Initiatives Fund (WIF) - Egypt
The Women’s Initiative Fund (WIF) was designed to provide opportunities for low income women in the Governorates of Qena and Aswan to engage in economic activities and increase family incomes. Working with the Ministry of Social Affairs (MOSA), the project established a credit fund and developed loan tracking and management systems. FIT also designed and implemented approaches to providing business support services to assist first-time women entrepreneurs, including feasibility studies and business planning. As a result of this project, 114 women and their families received credit and technical support to start-up new small businesses, and an additional 3,500 women gained access to micro-credit to support income generating activities. In 2001, WIF was honoured with CIDA’s Award for “Gender Equality Achievement” in recognition of WIF’s significant accomplishments in improving opportunities for women in Upper Egypt.
Small and Medium Enterprise Development for Upper Egypt (SMEDUP)
Through SMEDUP, FIT supported first-time entrepreneurs to start small- and medium-sized businesses and create employment opportunities in some of the most impoverished communities in Egypt. In addition to access to credit, SMEDUP clients received business development advice and services from pre-feasibility and start-up to ongoing business management and growth. The project reinforced the role of private sector development in improving quality of life for communities by emphasizing issues such as environmental protection, worker safety, compensation and working conditions, and adherence to social protection and insurance requirements. Over the life of the Project, SMEDUP created over 1,400 new small and medium enterprises, providing employment for approximately 5,500 Egyptian women and men.
Small Enterprise Development: Institution Building and Training - Caribbean
Through a project funded by CIDA and designed in cooperation with the Caribbean Community and Common Market (CARICOM) Secretariat, FIT provided comprehensive training and technical assistance to National Development Foundations (NDFs) in ten CARICOM-member countries to institutionalize systems for SME development. In addition to capacity development support to the NDFs in the areas of policy development and programming, project management and networking, FIT worked with other regional and national small business development organizations to strengthen their capacities to provide high-quality support to first-time entrepreneurs. The project resulted in the emergence of a vibrant network of business support services that work to support the long-term success of local small businesses and economic development.
Capacity Building for Management of Privatization - Africa
FIT, in collaboration with the Commonwealth Secretariat, co-sponsored a regional consultation on Capacity Building for Management of Privatization. The consultation brought together senior officials from privatization agencies, directors of management development institutes, and chief executive officers from parastatal and newly privatized enterprises from Ghana, Sierra Leone, Tanzania, Zambia and Zimbabwe. Participants identified systematic constraints they face in their work as privatization managers and addressed the comprehensive inventory of essential skills for successful reform programs. One of the key outcomes of the consultation was the formation of a Regional Advisory Committee on Capacity Building for Management of Privatization.
General Management Training – Guyana
FIT designed and delivered a general management training program for senior executives of various Guyanese enterprises in conjunction with Management Services Ltd., Guyana Stores Ltd., Guystac Trading Group II, and the Guyana Management Development Training Centre. This program included on-site consultation and support as well as training in areas such as diagnosing management problems, formulating objectives, planning, organizing, directing and financial control. A training of trainers for human resource development consultants was also developed in order to institutionalize best practice within participating enterprises.