Village Enterprise

Building Businesses to Break the Cycle of Poverty in Uganda

Location: Eastern Uganda
VEF2

Village Enterprise (VE) endeavors to break the cycle of poverty in East Africa. For many years, a husband and wife team ran VE from their basement in San Carlos, California, on their own sweat equity and that of their all-volunteer staff. From early on, VE's operating model was to make grants, in small installments, to give entrepreneurs among the very poor the means to start modest businesses and earn income. Today, with 7 United States-based staffers, 16 in-country personnel, and over 50 local business mentors, VE helps the extremely poor of Kenya and Uganda become self-sufficient with a unique program that includes business training, on-going coaching, start-up grants, and formal savings groups.

Since its founding, in 1987, VE has helped create more than 23,000 microenterprises. A recent impact evaluation shows that 88% of the businesses it funds are operating after one year, and 75% after four years. One-third of its entrepreneurs launch second businesses.

Project Redwood's first two grants helped rural farmers in the Katine and Kamuda areas of eastern Uganda start sunflower-production businesses. Sunflowers are a highly profitable and scalable agricultural crop used to produce cooking oil and healthy animal feed. A third grant alleviates poverty and protects wildlife by funding 100 new businesses in the Budongo Forest in partnership with the Jane Goodall Institute. A fourth grant was used to roll out a new and improved business and financial education training program for the ultra-poor in East Africa.

A fifth grant funded the development of "business-in-a-box," a bundle of assets, business training, mentoring and savings services needed to launch a viable retail, service or agricultural business. Village Enterprise will also provide other essential training and services critical to sustaining and growing the businesses, such as specialized skill training and business and financial education including savings and loan group training.

With it most recent Project Redwood grant, Village Enterprise will focus on developing economic opportunities for the landless poor, particularly in areas of Kenya and Uganda where protection of land for conservation limits agricultural options. Examining alternatives in the retail, service, and skilled sectors is expected most impact at-risk youth, ages 18 - 25, who most often do not have access to land.

For more information, see: http://villageenterprise.org.

GRANT SUMMARY AND PURPOSE

  • $20,000 to research and evaluate business options for the landless poor, and to subsequently fund and mentor about 30 pilot businesses. (2014)
  • $25,000 to develop "business-in-a-box," a bundle of assets, training, and mentoring services for retail, service or agricultural business. (2011)
  • $20,000 to roll out a new business and financing training program for the ultra-poor in Uganda. (2010)
  • $25,000 to fund 100 new businesses in the Budongo Forest that reduce poverty and protect wildlife. (2009)
  • $49,000 to create sunflower production businesses in Eastern Uganda. (2007 and 2008)

IMPACT

Measurable increases in business owners trained, businesses continuing to operate, food and household consumption, and secondary school fees paid.