One of the biggest breakthroughs in terms of economic creativity in poverty-stricken areas is the positive use of micro-entrepreneurship. The case study of "Mahila Sanatkar" or the "women entrepreneur" in India is a positive demonstration of how innovative business people have adapted their ideas to not only help the poor, but also grow their enterprise so as to maintain the impact on the community.
By providing women with jobs, micro-enterprises have brought about more than just gender empowerment. Like some pioneering banks would already know, women are shown to spend money more prudently than men, be it on their families or for long-term investment purposes. Increased spending power provides a demand for basic necessities such as health-care and education, which will benefit the community as a whole in the long-term.
Importantly, entrepreneurs must be strongly conscious that however good their intentions may be, if the enterprise strategy is not directed towards economic development and market presence, and if the balance sheets do not show eventual profits, the endeavor will eventually die out. Most early entrepreneurs are unable to afford the expertise and advice from high-level consultancies, and often, they lack the credibility to attract investors to put money into their "ambitious" projects. There are two possible ways to work around this problem:
Firstly, research on micro-entrepreneurship is still lacking. There is also no basic template to follow, especially since the socio-cultural circumstance of each rural area tend to be more varied in comparison to others as they become highly dependent on things such as natural geography and religious practices. A careful study of the area is necessary, and gaining the trust of locals to act as surveyors and provide in-depth information is crucial. This may seem time-consuming, but if the locals are receptive to the business proposal, the information and advice they provide could be far more valuable than hiring even the finest global consultants.
Secondly, most people think of investments in monetary terms, and in so doing they find it hard to attract outside investors, many of whom are inclined to see such an endeavors as risky and unproven. Entrepreneurs need to direct their resources inwards, such as towards building social capital among the locals. It is also vital to present their projects as feasible, long-term and beneficial towards the community, and once their trust have been gained, they might just chip in with whatever resources that they have. Investments from social capital can be translated into motivational force, financial input and political leverage that could provide a strong edge over huge capital enterprises perceived to be monolith invaders.
In Hyderabad, India, gender differences and cultural circumstances are crux points for entrepreneurs to leverage on, with benefits of social empowerment to be reaped by locals. Perhaps in the future, more of such micro-enterprises will rise up to bring improvements to impoverish communities around the world.
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