Home > Blog > Four Critical Success Factors for Microentrepreneurs

As I reflect on the current and future success of Prosperity Catalyst, I am reminded of a conversation I had recently with a former colleague, Sarah Mutesi, now Marketing Director at Gahaya Links, a Rwandan handicrafts vendor. Gahaya Links mobilized basket weavers from refugee camps and encouraged them to form cooperatives. After 12 years in business, Gahaya Links, with some support from international and regional donors, has won orders to supply major US retailers. When I asked Sarah how she and her colleagues took Gahaya Links from a local basket weaving cooperative into an international supplier of home decor products, she mentioned a few key strategies that allow women entrepreneurship enterprises to be sustainable:

  • Quality control is job one. While artisanal home decor accessories from developing countries are very popular in western markets, international consumers may not accept substandard goods just because the of the producer’s story is compelling. The products need to be intrinsically valuable and able to command market attention, even if no one knows the “back story.”
  • Don’t get too big too fast. Many major retailers are eager to demonstrate their commitment to sustainability by sourcing from women in communities touched by natural disasters or conflict. It’s tempting to accept these prominent customers because big orders can help handicrafts businesses achieve scale quickly. However, businesses based in developing markets should only accept large orders when they are confident they can meet the quality standards, quantities ordered and deadlines set by western customers.
  • Ensure that women receive training in financial and operations management. Microenterprises often start out informally, as a way for entrepreneurs to earn extra money to supplement other income sources. However, that doesn’t mean that they should be managed informally. Donors and local authorities will have bookkeeping and other operational record keeping requirements. Women entrepreneurs, who may not have had many educational opportunities before becoming handicrafts producers, will be well-served with comprehensive training and mentoring in business operations, marketing, and bookkeeping.
  • Encourage women entrepreneurs to diversify their income streams. Producing goods for consumer markets is cyclical. Orders for November and December shipment dates may cause a flurry of activity and payments that quickly plunge a month later. In addition to producing handicrafts, emerging women entrepreneurs should be encouraged to apply their marketing and business skills to other small ventures, such as selling to local customers, to provide income during times when orders for handicrafts are low.

So, when I was asked to become a founding Catalyzer, I couldn’t say no. Prosperity Catalyst’s business model intrigued me. It not only incorporates the best practices of organizations like Gahaya Links but also unites several types of assistance offered by large donors: technical training; access to overseas markets; marketing and design expertise; manufacturing know-how. How could I not become a Catalyzer?

I was honored to become a part of a global development organization that develops women’s entrepreneurship. And now, I am so proud of what Prosperity Catalyst has accomplished thus far. They’ve secured grants to support women in northern Haiti and Iraq—but now comes the real fun (and challenging) part: continuing to mentor the women entrepreneurs to build businesses that are sustainable. Given that the board, staff, and entrepreneurs are grounded in best practices and hard work, Prosperity Catalyst has a bright future.

 

-Joy White, Principle at JRW, LLC, a consultancy serving small, woman-owned businesses. A former foreign service officer, Ms. White has spent over 10 years working in the field of global development in recruiting and human resources, project management and marketing roles.

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