Microenterprise Development under Conditions of Fragility

Publication Date: 14 Jun 2006
Published by: USAID - U.S. Agency for International Development
Document Type: Presentation

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How can microenterprises develop and grow in ‘fragile’ states?

This presentation examines the development challenges that microenterprises face in ‘fragile’ conditions, and attempts to develop a model that would work well in such conditions.

The presentation defines a fragile state as one where:

• There is a lack of capacity or willingness to “establish pre-conditions for long-term development”;
• Prevailing conditions are “too fluid and too risky to make savings and long-term investment attractive”.

The presentation describes:

• The typology of fragile states that includes arrested development, deterioration, post-conflict transition and early recovery, and their connection to ‘capacity’ and ‘willingness’;
• The challenges that enterprises, finance, and services face under conditions of fragility;
• A pilot project that aimed to develop model guidelines for sustainable microenterprise development (MED) in fragile states.

The presentation lists the following organizations and their work in MED in fragile states:

• Save the Children;
• CARE;
• WOCCU.

It concludes by presenting the following questions for discussion:

• What are the key differences between ‘fragile’ and ‘developmental’ states in conditions affecting MED?
• What MED approaches work in fragile states;
• How can the issue of sustainability be approached?
• What should model guidelines contain and how can they be made useful?