The double‐X factor: harnessing female human capital for economic growth

Purpose - The purpose of this paper is to present MEDA programs in small enterprise development – value chain and microfinance projects – to illustrate that the human capital of even hard to reach women can be harnessed for a community's and even a nation's economic growth. Design/methodology/approach - The paper provides evidence, in the form of case studies, demonstrating that with a relatively low investment of resources, women are empowered to contribute to the growth of the small business sector which is a cornerstone of a robust private sector. Findings - Working with disadvantaged populations that have been relegated to the bottom of the socio‐economic heap has challenges. Program design must overcome a host of constraints including illiteracy and innumeracy, lack of technical and business skills, and the psycho‐social consequences of generations of disenfranchisement. Yet, case after case has proven that these seemingly intractable obstacles diminish with appropriate project interventions. Whether or not the program “targets” or “mainstreams” women should be based on the context and an understanding of women's situation. MEDA has had varying degrees of success with these two approaches, and preliminary findings suggest that value chain projects derive greater benefit from targeted activities than do microfinance programs. The impact of business women's efforts extends well beyond their own businesses, to finance family enterprises, educate children, improve household nutrition, organize community groups, and build more equitable social structures. These “indirect” benefits of the economic empowerment of women will serve any nation committed to the growth of trade and commerce. In fact, some would argue, the authors included, that they are necessary conditions of sustainable wealth creation. Originality/value - The paper presents original case material from a number of MEDA value chain and microfinance projects, both past and present, to illustrate the concept, and share project design and implementation learnings.