Redefining Poverty
The standard definitions of poverty are purely financial, such as “living on less than $2 per day.” However, a better definition of poverty is an exclusion from networks of productivity and exchange – a view that enables us to define the real problem, and seek the best solution. Examples of networks of productivity and exchange range from the Internet and cell phones, to education and to financial marketplaces. By recognizing that every individual has innate dignity and the freedom to guide their future and that of their nation, we are better able to partner with the poor to chart the path to self-determination and prosperity.
New Approaches Needed
Traditional approaches to poverty alleviation simply do not work; charity is neither an effective strategy nor a sustainable solution for economic development. Sub-Saharan Africa has received a trillion dollars in funds, but is much worse off today than in the 1970s, with more than half of its 700 million inhabitants earning less than a dollar a day. Despite all the aid, only a few countries have made significant strides toward eradicating poverty, such as China, India, Botswana and a handful of others. Further, this result was primarily achieved through private sector growth, strategic investments in entrepreneurship, and active engagement with global markets. In addition, traditional charity approaches fail to ensure that members of poor communities develop self-sufficiency, and a sustainable ability to improve their circumstances.
Entrepreneurs as engines of growth
Firms are the true engines of an economy, and more than 80% of firms in prosperous nations are small and medium-sized enterprises (SMEs). It is these types of firms that this mission intends to encourage to participate. Efforts to encourage private sector growth must address the individual entrepreneurs that create these SMEs. Many services, including financial, are available to very small producers by way of microfinance institutions, while large companies in developing nations can easily access more traditional networks via institutions such as universities and global financing networks. SMEs are often “stuck in the middle” without access to finance and other vital technical services.
Entrepreneurial Importance
An entrepreneurial mindset, including values consistent with innovation, is an important component of a successful development plan. The Fisherman Foundation and SEVEN intend to create a successful model in the Philippines that can be implemented and can serve as a role model in other emerging markets. The winning model will include a network that sees emerging markets not as a problem, but as places with possibilities: that sees poverty as the chance to satisfy unmet needs at the base of the pyramid, and sees values such as tolerance, optimism, and trust linked to a high and rising standard of living. We hope to inspire the next generation of entrepreneurs and reshape the debate on poverty in developing countries by identifying, highlighting, and rewarding role model for-profit solutions to the problems of the poor. We feel that it might be helpful for the reader to have a sense of what we see as a truly successful entrepreneur, which goes beyond the keystone of being profitable.