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.
the need for extra income from small economic units in developing countries are contributing factors.
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.
Housing space already acquired is available at no extra cost.
All family members can contribute to the financial health of the household.
These ventures are convenient for those who are also responsible for daily household
chores or raising children.
Barriers to home business in some areas:
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.
Poor or Nonexistent Transportation—Decent transportation is frequently unavailable.
Many places have no electricity, no telephone lines, and no radio or TV.
especially outside the home. This can restrict the effectiveness of poverty
improvement plans.
Fear of Outside Influences—Many fear outside influences, particularly from
Western cultures. The concern is that these may destroy the traditional, native
culture.
Is anything being done to remove these barriers?
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 teleworkingjobs 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:
Thailand, Brazil, Tibet, and St. Lucia: http://travel.boston.com/stories/051002_thai_responsibly.htmlEast Africa and Fiji projects: http://www.boston.com/globe/editorials/bigidea/
ecotourism_honey.shtml
Despite many obstacles, Information Technology (IT) is being used to empower women in small enterprises. A lot of service jobs are outsourced by major Western companies. Other profitable opportunities exist for women's small-scale enterprises in business-to-business and business- to-government markets. (Hafkin and Taggart)
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.
may benefit from marketing information and the opportunity to advertise their
niche market products everywhere.
Adequate
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.
Financing is an insurmountable obstacle to many. Grameen Bank addressed this
in Bangladesh. They discovered that even with these loans, it takes a poor person
six to 10 successive loans (one year each) and very hard work to cross the poverty
line. The first loan is often as little as $50 (US) with the average a little
over $100 (US). See the Results International Website (www.action.org/microjoel.html)
for more about Grameen Bank.
There are also poverty banks in the United States. Most offer business training and
support in addition to loans.
Ecotourism 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:
In the Asia-Pacific region, ecotourism represents 20% of all travel.
Ecotourism travel to Africa accounts for up to 80% in Kenya.'
Here are three discussions of ecotourism: “Clean Industry or Culture Killer”
(www.boston.com/globe/editorials/bigidea/
ecotourism_honey.shtml)
“The Accidental Ecotourist”
(www.americanwaymag.com/business/feature.asp?archive_date=1/1/2003)
“Taking the Natural Path”
(www.emagazine.com/july-august_2002/0702feat1.html)
The Non-Government Organization (NGO), Shirkhat Gah, (http://www.dawn.com/2000/10/06/nat18.htm)
teaches women how to weave popular fabrics on handlooms. Its focus is in the
area of Karachi, Pakistan.
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.
(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.
The 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.
Financial resources include:
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.
(203.162.7.73/webs/environment/UrbanEnvironmentProtect/
www.calmeadow.com/about.htm) is a possible source of Canadian micro loans.
Australians
may qualify for the Australian Regional Assistance Programme (www.ministers.dotrs.gov.au/wt/releases/2002/june/wt33_2002.htm).
Future developments for small economic units around the world:
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.
issues will be addressed. New technology will be used to provide access to services
and communication facilities of all kinds.
Perhaps 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.
How can small economic units contribute to overall economies outside their immediate
area?
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.
A lot of home-based businesses provide information as their product. Small economicunits are users of information
SOURCES:
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)
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
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
Website: http://www.action.org/microjoel.html
RESOURCES:
This is a gateway to emerging markets, http://www.emdirectory.com/.A list of globalization issue sites http://www.brookings.edu/dybdocroot/globalization/
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 .globalbiz@furriwhalesworld.com
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