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SMALL ECONOMIC UNITS IN DEMAND WORLDWIDE
By Yank Elliot, IAHBE Staff Writer
Until the late 19th century, nearly all manufacturing and production was done at home or in very small quarters. All these activities were home-based businesses as we now know them.
In developed nations, the lifestyle available from working at home is an attraction. This kind of enterprise also provides financial support as extra income or as the main employment for unemployed workers. What's more, many countries are now changing religious and cultural restrictions regarding women. Pressures on family finances and women’s rights movements are causing some changes in these attitudes. There is also worldwide effort to overcome poverty, and small home-based units provide one avenue for doing this.
Why are small economic units useful?
required investment is small.
Illiteracy—Many poor areas have large populations of illiterate people. The struggle to survive overcomes any thoughts of education. To progress in the 21st century, a minimum level of literacy is necessary.
Pressures of Poverty—Although some countries are developing free education programs, this often forces families to decide whether to educate their children or send them out to work. It’s a difficult decision when daily life is so demanding. Poverty itself impedes progress of any kind.
Poor or Nonexistent Transportation—Decent transportation is frequently unavailable. Many places have no electricity, no telephone lines, and no radio or TV.
Religious and Society Taboos—Some cultures are opposed to certain people working, especially outside the home. This can restrict the effectiveness of poverty improvement plans.
of Outside Influences—Many fear outside influences, particularly
from Western cultures. The concern is that these may destroy the traditional,
The focus is turning toward actually getting money to local people, but challenges abound. Global companies often take all the profit back home. When governments are given grants, the people just get a minimum part; the rest is kept for government use. Responsible companies have scrapped plans in a few areas because the authorities would not let them pay workers a fair pay directly. The government wanted to receive the money and dole out a minimum wage.
Fortunately, there are also success stories:
The Internet offers opportunities to telework using a computer. Most of the teleworking jobs in developing countries are actually performed in commercial areas and not in homes. Many such jobs are available to women, and some have expressed a desire to work close to home but not AT home. (Alloo)
Success stories about programs that actually help individuals:
Brazil, Tibet, and St. Lucia: http://travel.boston.com/stories/051002_thai_responsibly.html
Other ways women can use IT are:
Female farmers could greatly increase productivity with access to information on improved agricultural inputs, weather, markets, new production techniques, and farming technologies.
Entrepreneurs may benefit from marketing information and the opportunity to advertise their niche market products everywhere.
communication is essential for IT businesses to thrive. One successful
model is Grameen Phone in Bangladesh, téléboutiques in Senegal
and Morocco, and phone shops in Ghana. Not only do the entrepreneurs in
the phone business make money, they provide many around them with access
to the outside world.
Similar banks operate in the Philippines, Indonesia, El Salvador, Mexico, and other countries.
There are also poverty banks in the United States. Most offer business training and support in addition to loans.
Activities that support and promote economic units:
has been a boon to many under-developed areas. Events of September 11,
2001, and later have diminished its value, however. These are two indications
of the importance of ecotourism:
This Kenyan cooperative (http://www.africaonline.co.ke/jisaidie/main.html) helps rural people market their baskets, jewelry, musical articles, and pottery throughout the world.
BEENET (http://www.idrc.ca/nayudamma/beekeeping_4e.html) helps landless farmers in India, Nepal, Bangladesh, Maldives, Sri Lanka, Vietnam, Thailand, Malaysia, Indonesia, Philippines, China, and Papua New Guinea. They make money keeping bees.
Escotel (http://www.ipan.com/PRESS/2001jan/0901esc.htm) Grameen Phone Sewa operates a local cell-phone industry in rural India. Each unit not only makes money for the entrepreneur, it usually provides phone needs to, on average, 5,000 people in surrounding villages.
Tabitha Foundation (http://www.tabithafoundationaustralia.com/main.cfm?Page=5)
offers Cambodians training in making silk and other products. After six
weeks trainees usually have enough money for the equipment they need.
U.S. SBA fast-track Micro Loan lends up to $25,000. The process takes less than one week and the term is up to six years. Find the Micro Loan Intermediary near you here: www.businessweek.com/smallbiz/resources/micro_loan.htm.
Search Google (www.google.com/) with “microloan” or “micro loan” (using the quotation marks) for many other local small loan sources.
Australians may qualify for the Australian Regional Assistance Programme (www.ministers.dotrs.gov.au/wt/releases/2002/june/wt33_2002.htm).
in Australia is the Grameen Support Group (www.action.org/summaryp.html),
Education is an issue that will receive a lot of attention. Not only will people learn how to get out of poverty, they will learn about their health and how to manage their families better.
Infrastructure issues will be addressed. New technology will be used to provide access to services and communication facilities of all kinds.
there will be local movements to change social thinking about family relationships.
Any such activity must be within the religious and community values of
the people involved. Outsiders can’t do this.
Small home-based units can be sources of products for large and small companies worldwide. The Internet can help people publicize what they have to everyone.
These small units are potential customers. The Internet makes this more possible as well.
lot of home-based businesses provide information as their product. Small
economic units are users of information
Alloo, Fatma, (Founder, Tanzania Media Women's Association in the Society for International Development and UNESCO) Women in the Digital Age ?Using Communication Technology for Empowerment: A Practical Handbook, p. 14. Rome, 1998. Downloadable PDF document: (www.genderreach.com/pubs/it/execsumm.pdf)
Hafkin, Nancy, and Nancy Taggart. “Gender, Information Technology, and Developing Countries: An Analytic Study“. USAID’s Office of Women in Development. June, 2001: http://www.usaid.gov/wid/pubs/it01.htm
Honey, Martha. “Clean Industry or Culture Killer.” The Boston Globe. January 20, 2002: http://www.boston.com/globe/editorials/bigidea/ecotourism_honey.shtml
Lynn, Barry. “The Accidental Ecotourist.” AmericanWay: Trends for the Modern Traveler, 2003: http://www.americanwaymag.com/business/feature.asp?archive_date=1/1/2003.
Motavalli, Jim. “Taking the Natural Path.” Emagazine.com - The Environmental Magazine, August, 2002: http://www.emagazine.com/july-august_2002/0702feat1.html
Rubinstein, Joel. “A Poverty Eradication Strategy That Works.” RESULTS International Website: http://www.action.org/microjoel.html
Article by Yank Elliott, IAHBE staff writer. Yank is a home-based entrepreneur and freelance business writer in Belhaven, North Carolina. His Website is www.furriwhalesworld.com. Contact Yank at .firstname.lastname@example.org