Empowering Entrepreneurs in Emerging Economies

In my work as a business development services (BDS) provider, I’ve seen a thing or two. And I wish I could unsee the fact that we’re doing a lousy job supporting entrepreneurs in low-income countries.

If the road to hell is lined with good intentions, we’ve certainly paved the way.

Business support that doesn't really support

We offer up seed money, loan guarantees, small grants, and microloans, for which many entrepreneurs don’t qualify.

We provide technical support and market development.

We try to create business-enabling environments and increase exports. These are certainly not bad things; in fact, we need all of them.

And we do training.  Lots of business skills training. 

While helpful in some cases, isolated workshops and training sessions don’t generally produce meaningful business outcomes because constructive business support isn’t a one-time intervention. 

In my experience, a few weeks or months in-country trying to serve too many entrepreneurs in too short a time has little effect, other than meeting self-serving organizational metrics that care more about numbers than true impact.

But here’s the thing. If startups and small enterprises don’t know how to manage their businesses, what good is all the other stuff?

What microenterprises actually need

What microenterprises in emerging economies really need is ongoing management support and real-world learning in the context of their own businesses. It must be personalized.  It should be gentle, patient, and simple. 

Handing them a business plan and leaving the country doesn’t cut it.

A profusion of problems

I recently read a job listing for an SME project that is virtually identical to one I worked on, in the same country, nearly 20 years ago.  I can only hope they get it right this time.

There are, of course, many implementation challenges:

• Small business development is often an add-on or a tiny component of broader aid projects. 

• Insufficient resources are allocated for it.

• The criticality of business management skills is not recognized or fully understood.

• Donors want scale so they can show that they reached many businesses. 

• Private sector business expertise in execution is missing or underutilized.

  
  

Working with individual entrepreneurs is effective but time intensive, and often not feasible.  Such is the reality of MSME support in development contexts.

where current approaches fail

1) The support is too short to stick

Workshops can be informative, but most entrepreneurs return to the daily chaos of running a business and revert to old habits, especially when stress hits.

2) The training is too generic

A micro-retailer, a small-scale farmer, and a service business owner do not have the same operational problems. And yet they often get the same curriculum.

3) Programs optimize for scale, not success

Donors want scale so they can show they reached many businesses. But “reached” is not the same thing as:

• improved margins

• better cash flow

• fewer stockouts

• increased repeat customers

• stable profits over time

4) Private sector execution expertise is missing or underused

You can’t train entrepreneurs effectively without understanding what it takes to run a business under constraints, pricing pressure, supply disruption, inconsistent cash, staff turnover, and customer churn.

5) Individual support works, but it’s time intensive

Working one-on-one is effective, but costly and hard to scale. Many projects avoid it, and then wonder why outcomes don’t change.

This is the reality of MSME support in development contexts. Then we keep acting surprised that enterprises don’t become sustainably profitable.

a better way

With internet access spreading rapidly across the developing world, a new and more potent method of SME support is possible. It doesn’t involve AI or fancy algorithms. It’s simple, practical, cost-effective, and innovative.

I have a web-based business support methodology that features personalized entrepreneur coaching.  I coach microenterprises remotely over Zoom.  That means business support over the course of weeks or months rather than one-off training.

The core coaching model

• Weekly sessions (typically 60 minutes)

• Small groups of up to five business owners

• Face-to-face interaction with the coach

• Built-in peer-to-peer learning

• Entrepreneurs can fit the program into busy lives without stepping away from their businesses

My programs concentrate on the areas that most entrepreneurs struggle with: financials, marketing, and business plans.  Custom programs are available upon request to expand on topics and meet project parameters.

how it works

Each session includes a teaching module and weekly assignment. Participants complete the homework at their convenience, and we review/discuss completed work in the next live session.

Entrepreneurs get:

• direct feedback from the coach

• practical advice tailored to their situation

• insights from seeing how others solve similar problems

Sessions are recorded so entrepreneurs can catch up if they miss one or rewatch for further review.

coaching focus areas

1) Financials

Many entrepreneurs can sell. The problem is that they often don’t know:

• how to keep financial records

• if they're making or losing money

• which products or services are profitable

• how to plan for slow months (cash flow)

• to separate household funds from business cash

2) Marketing

We help entrepreneurs clarify:

• who their target customers are

• what makes their offerings different from competitors

• how to best promote their products

3) Business plans

The value of a business plan isn’t so much the document. It’s the thinking and planning process.

Custom programs

Custom programs are available to expand topics and meet specific project parameters, because not all business cohorts need the same emphasis.

What’s in it for donors and implementing organizations?

The international development community seeks innovation and creative use of technology in SME support and other areas. Remote coaching offers cost savings by eliminating travel overhead. Those savings can fund additional entrepreneurs or expand programs.

Additionally, working in small groups allows for bespoke entrepreneurial support at a fraction of the price of one-on-one coaching.

Entrepreneurs also get access to the senior-level international business expertise. The cost savings can be used to support additional entrepreneurs or for other purposes.  

Yeah, but…

I understand that some circumstances require in-person, on-the-ground contact. I'm available for in-country work, stakeholder meetings, and initial visits, either to kick off remote programs or deliver the work the traditional way.

Remember when business video conferencing was introduced?  Many poo-pooed it as no substitute for a handshake or a lunch meeting.  Perhaps. But post-pandemic global business has changed that.  The internet makes live contact possible when in-person meetings aren’t feasible or cost effective. 

Does remote coaching really work?

In a word: yes.

Success depends on two things:

1. the skills and discipline of the coach

2. selecting serious, diligent, ambitious entrepreneurs

In our testing, entrepreneurs appreciated:

• the simplicity and effectiveness of the tools

• the “handholding” through difficult business concepts

• personalized feedback on their specific business situations

• responsiveness to their questions

Most importantly, they feel proud when they complete the programs.

best implementation practices

If you’re considering remote coaching as a delivery model, whether with me or anyone else, here are best practices that improve outcomes.

1) Select the right entrepreneurs

Identify participants who:

• have basic literacy and numeracy skills

• are serious about running a business

• will commit to weekly sessions

• are willing to do homework

• want growth and stability, not just a certificate

2) Keep cohorts small

Small groups make it easier for personalized feedback, individual participation, increased attention, and accountability.

3) Build in time for practice, not just learning

The system should include real-world assignments, personal review, adjustments and iteration

4) Support basic digital access needs

Remote programs need computer access, reliable internet access, and a quiet space for sessions.

FAQs

1) What is a Business Development Services (BDS) provider?

A BDS provider supports entrepreneurs and small businesses through services like training, coaching, market linkages, operational support, and financial management guidance, aimed at improving performance and sustainability.

2) Why don’t one-time workshops produce strong results?

They can't provide the individual advice and counseling that coaching can. Developing-country entrepreneurs need handholding and learn best in the context of their own business.

A workshop can inform, but it rarely transforms.

3) Why focus so much on financials?

This is where most microenterprises need the most help. They often don't know how to keep proper business records. Cash flow is the number one reason for business failure.

4) How is remote coaching different from online courses?

Online courses are often one-way content. Coaching provides personal attention, accountability,

live feedback, and encouragement.

5) Does remote coaching work for low-literacy entrepreneurs?

It can, depending on program design, tools, and facilitation style. In some contexts, additional support may be needed (visual tools, simplified templates, more verbal coaching).

6) What types of businesses benefit most?

Micro and small enterprises that are already operating and want to stabilize or grow, especially those struggling with finances.

We are not short on good intentions in SME support. We are short on effective, practical execution. Entrepreneurs don’t need more inspiration. They need business skills.

Is your organization ready to do things differently?

Also see Putting Entrepreneurship Where It Belongs