SBA: National Small Business Week

SBA US Small Business Administration

Small And Growing Businesses Are A Key To Our Job Problems

Samantha Smith, Contributor Entrepreneurship and Innovation 24/7. Government and Policy Matter. 6/13/2013 @ 2:37PM Small And Growing Businesses Are A Key To Our Job Problems In both developing and mature economies, small and growing businesses (SGBs) struggle with three problems —access to industry, small initial capital, and strong human resources. In my own research I’ve found this, and ANDE’s latest impact report confirms this and more. SGBs can be defined as businesses able to grow beyond a small business meant for livelihood and able to employ staff upwards of 200 or more. With so much talk about economic growth and recovery, startups, and microfinance, focusing on supporting SGBs is one of the most effective ways to create jobs and serve communities. The ANDE network is made up of over 181 member organizations across 150 countries focused on serving SGBs in developing countries. Combined they have worked with over 60,000 SGBs. ANDE member services are doubly important given much of the SGBs they serve are in countries that have twice as many hurdles— from government issues, to lack of infrastructure, and unskilled workers. The success of SGBs can contribute to the 400 million jobs we’ll need globally over the next decade just to retain current employment levels. Targeting the financing issue directly, 293 funds committed to serving SGBs each have on average $52 million in assets, and 40 of those 293 funds co­-identified with GIIN are in the ANDE network. The point of ANDE is to unite the sector, share insight, and promote the mission of serving entrepreneurs in emerging markets towards the aim of ultimately lifting countries out of poverty. Impact investment institutions source their capital from financial development institutions, high network individuals, foundations, and some are open to any accredited investor. Some organizations like KIVA, the BID Network, and Trilinc Global are working to democratize impact investing, too. On the larger, institutional front, Deutsche Bank has the Essential Fund and Goldman Sachs is working to build out the number of investable women businesses with their 10,000 Women initiative. Both the Clinton Global Initiative and the World Economic Forum have launched working groups to promote impact investing, with a focus on small business entrepreneurs. CONTINUE READING ARTICLE