Innovative Practice 2017 on Employment, Work and Vocational Education and Training
Government supporting community-led micro-enterprises
Name of Innovative Practice: | Government supporting community-led micro enterprises |
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Organisation: | Afghanistan Rural Enterprise Development Programme (AREDP) |
Country of Implementation | Afghanistan |
PROBLEMS TARGETED
Due to decades of warfare in Afghanistan, the number of people with disabilities has continued to increase, and as such, the government and local stakeholders have had a hard time providing for the growing number of people requiring special support, specifically people with disabilities living in rural settings.
SOLUTION & METHODOLOGY
AREDP supports people with disabilities from rural environments to establish micro-enterprises, such as mechanic workshops, beauty parlours, carpentry, transportation services, embroidery, poultry, shop keeping, and tailoring.
After establishing the micro-enterprise, the entrepreneurs receive technical and soft-skills training on marketing, costing and pricing, selling, feasibility and business plan development, business promotion, simple bookkeeping, etc. Moreover, AREDP engages in community-based enterprise development, including:
• Saving groups (SGs): An SG consists of eight to ten community members who conduct regular meetings and each saves 30 AFS (about EUR 0.50) on a weekly basis.
• Village saving and loan associations (VSLA): The purpose of the VSLA is to provide larger loans for commercial and entrepreneurial activities, such as agriculture, handicraft, livestock, poultry, food processing, etc.
• Enterprise groups (EGs): An EG consists of three to five rural entrepreneurs who run small-scale businesses at the community level.
OUTLOOK & TRANSFERABILITY
The project was funded with US$200,000 from the World Bank’s International Development Association, which covered the costs of employee salaries, trainings, toolkits, and business incubation and monitoring. Currently, the Ministry of Rural Rehabilitation and Development is conducting random monitoring of the project.