Going Faster and Farther: Harnessing Technology for Microenterprise

This guide summarizes the experiences of microenterprise development (MED) programs that have invested in technological innovation and of donors that have supported it. The guide examines the following three challenges that MED programs face and the various ways in which technological innovators have addressed these challenges:Overcoming geographic boundaries – responses include launching national services that reach across barriers of time and space to offer loans, training and technical assistance. Examples are:

• MicroMentor – an on-line service that links emerging entrepreneurs to mentors with industry-based expertise and technical skills not available locally;
• My Own Business – an on-line business planning course designed for current and aspiring micro and small business owners.

Growing markets, where the challenge is to go beyond traditional marketing techniques to increase sales. Responses to this include innovations such as:

• Creating and marketing Web malls by programs on behalf of clients;
• Offering technology labs and technology training to entrepreneurs;
• Helping clients purchase technology and integrate it into business operations.

Increasing operational efficiency, where the challenge is to adopt leaner, more creative methods of marketing and outreach, service delivery, management and administration – responses include combining high-touch quality with highly efficient operations. The guide concludes by listing the following key principles that funders should follow:

• Invest in a programs technological capacity first;
• Ensure that business needs drive technology and not vice versa;
• Insist on a technology plan;
• Be willing to invest in technology innovation.