The Pope and the CEO > Entrepreneurship
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The Church in Africa: Aid versus Investment
Installment 14 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 The bottom line is clear to me: The famous saying goes that it takes the government $3 to redistribute $1. Aid as a form of redistribution is also not an effective way to entice sustainable economic growth. But research has shown that one dollar of collateral guarantee can generate at least $2 in loans. Every dollar of a loan or an investment in a strong small or medium sized business generates $12 in the local economy. That means that one dollar of collateral can generate $24 in additional activity in the local economy. Only business loans and investments create the economic stimulation that we are all looking for.
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The Church in Africa: A specific proposal to promote entrepreneurship
Installment 13 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 I’d like to propose to you a specific Idea for your diocese: It’s what I would call the Entrepreneurship Ministry Effort: It has 3 parts 1. Spiritual formation, guidance, counseling 2. Business expertise, planning, pitching, process (skill development) 3. Capital access through a system that provides qualified entrepreneurs collateral funds to receive loans from banks I would be happy to help you work out specific plans for your diocese if you come to see me while I’m here at the conference. We can also talk about various financial investment and loan models that I might help you create or provide you access to.
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The Church in Africa: A middle class is required for the Churches to become financially independent
Installment 12 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 Growth is caused by wealth creation, and specifically wealth creation by SME’s. Yet aid organizations are afraid to get involved in a project where someone might make money. A middle class is required for the society to develop and also for Churches to become financially independent. SME entrepreneurs are the key building block for that, but the hurdles for them are real. Most businesses fail because they’re too small and under capitalized. But even if they fail, they contribute. 75% of all new businesses are started by people who have been previously employed in another company. Single biggest requirement for FDI is investor confidence in the macroeconomic policy and stability of the country. Transparency, good governance and an effective legal system are all necessities for attracting investments. If we want businesses to grow, we have to have an environment where they can flourish. Consider the difficulty of something as simple as the process of setting up a business: I heard from someone that it takes up to 45 different signatories in Congo to start a new business. If that is true, then most reasonable business… Read more
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The Church in Africa: Entrepreneurs are aware that there’s more to life that meets the eye…
Installment 11 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 What then should a solution entail? “The Peruvian economist Hernando de Soto writing about the developing world said: ‘It is teeming with entrepreneurs.’ And the question we want to ask is: how can that entrepreneurial spirit be unleashed so that the poorest of the poor can live lives that meet their dignity?” Provide access to networks of productivity and exchange. This means in particular to: Loan to or invest in competitive entrepreneurs and SME companies Promote a stewardship-based entrepreneurial culture Technical business and entrepreneurship education Promote human dignity and solidarity Let me propose to you a specific course of action: I encourage you to start an entrepreneurship ministry Entrepreneurs are aware that there’s more to life that meets the eye… They realize that the human person transcends; They know that truth exists independent of them; They are spiritual seekers; They yearn to be ministered to, but our churches often ignore them. Many governments, churches and NGOs focus on providing microcredit. This is a wonderful invention, but it is not aimed at SMEs. It does not create a middle class. It brings people from abject poverty… Read more
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The Church in Africa: Poor people are not “a problem” to be solved… they are people with latent economic potential
Installment 10 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 Work and competition corresponds with the dignity of the human person. It is our responsibility, our duty to promote a culture of self realize and excellence. Entrepreneurship and Spirituality Maybe some of you have heard of the book and movie “The call of the Entrepreneur” of Father Robert Sirico, the founder of the Acton Institute. If not, I recommend you see it. Father Sirico writes that entrepreneurship is a spiritual vocation. Entrepreneurs make something out of nothing. And whenever we humans do that, we know that God is present in that action, because only God can do that – and he invites us to be co-creators, to become co-workers in his vineyard to build his Kingdom. One of my favorite quotes of John Paul II about the issue of economic development: Poor people are not “a problem” to be solved… they are people with potential. This is at the core of how we should approach any kind of development. Many government and NGO efforts lack this view of integral human development… And its fruits are therefore in danger of hurting more than helping.
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The Church in Africa: Build on what you have!
Installment 9 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 So the question is: what is the Church’s role, the church’s opportunity in this? We Catholics should not complain if the business elites are immoral and secular if we haven’t reached out to them, If we have not evangelized them before they became economically successful. After all, it’s the business of the Church to form the moral conscience of people. If they grow in business without adequate spiritual guidance, they fail to see a deeper sense in their work and thus in their money. It is up to use to specifically minister to them, to nurture them and to help them grow in virtue and in their relationship with Christ and his Church. What can the Church do? Build on what you have! There ARE entrepreneurs in your diocese. You probably know quite a few of them, and there are many more aspiring business owners with talent. Get to know them. Minister to them specifically. Nurture them. Get them involved by getting involved with them. Forming the conscience of business leaders The Church has a lot to offer to Entrepreneurs Entrepreneurs have a lot to… Read more
