Entrepreneurship | The Pope and the CEO

The Church in Africa: Solving poverty… Should be done by creating wealth

Installment 8 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 John Paul taught that poor people should not be regarded as a problem to be solved, but as people with potential. Many of today’s solutions that regard the poor as a problem end up trying to do away with them through abortion and birth control rather than actually eradicating poverty itself. Our system is afraid of the poor or regards the poor as ignorant masses that need to be managed, or both. Solving poverty should be done by creating wealth. Small and medium enterprises (companies with 10 to 500 employees, companies that can “scale”) are the engines of prosperity in your diocese. If they grow, your faithful have good and secure jobs, the local economy grows, a middle class can flourish and a local basis of philanthropy evolves. In short, your diocese becomes economically self-sufficient, but much of this depends on these entrepreneurs. They have to be acting with a stewardship mindset. They have to be catechized. The have to have a strong and active relationship with Christ. They have to see their talents and their work as gifts from God. They have to have… Read more
The Church in Africa: The Missing Middle

Installment 7 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 In the European Union, it is estimated that more than 20 million SMEs (with up to 250 employees) accounted for over 80 million jobs. In the United States (where small firms are defined as those having fewer than 500 employees), 99.7 percent of all firms fall into the “small business” category, account for half the nation’s jobs and contribute more than 50 percent of non-farm GDP. In developing countries, this SME sector is almost entirely missing, which is a major contributor to the cycle of poverty. Networks of productivity and exchange: John Paul defined poverty not as living on $1 a day, but suggested that a better way to describe poverty is the state of being excluded from networks of productivity and exchange. Starting from that problem formulation leads us to better solutions. It is no wonder that if we start with the $1 a day problem statement that we end up with a solution that calls for redistribution of wealth. But the economy is not a zero sum game. Prosperity is created when business transactions happen, and business can create more money through trade.… Read more
The Church in Africa: Pioneers of Prosperity

Installment 6 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 Pioneers of Prosperity 5 Minute Overview Video (w/ text slate) from Jeff Zimbalist on Vimeo. The Pioneers of Prosperity Awards Program is based on SEVEN’s experience that great companies exist in even the most challenging business environments. We believe that greater prosperity can be achieved in emerging markets if these existing models of success are better understood and effectively replicated. Showcasing local success stories, focusing on small to medium size firms, will help to inspire a new generation of entrepreneurs that can serve as the engine of increased growth and prosperity for their country. Pioneers of Prosperity will award winners with up to US $100,000 to invest in technical infrastructure and training for their companies, and connect them to networks of technical expertise, potential investors, and other cutting-edge entrepreneurs on the local, regional, and global level.
The Church in Africa: The most effective poverty fighters are entrepreneurs.

Installment 5 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 Development, or the lack of it is a complex issue – culture, aid, economics, politics all play a role. But I find that a key reason is because local entrepreneurs are not encouraged by their own people, are ignored by the economic development groups and don’t have proper access to the financial system to grow their firms. That’s a pity – because I believe that the best way to fight poverty is through investment, not aid. The most effective poverty fighters are entrepreneurs. People who build local companies that employ 20-500 people. They bring about long-term employment. They create the middle class. They enable the local community to flourish. They enable our local churches to function. But they are very normal people like you and me. What they have is a special gift. A special talent. I realized this as I first came to Africa to advise companies on business strategy. I worked with some of the best entrepreneurs in the USA and was blessed with a wonderful career. I learned a lot from these entrepreneurs and was now applying it to companies in emerging… Read more
The Church in Africa: 60% of all foreign aid stays within donor countries

Installment 4 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 Why is it that all this aid money had so little effect? Why hasn’t more progress been made? The reasons are many and complex, but a few simple points stick out to me: The World Bank has estimated that 60% of all foreign aid stays within donor countries, and is used to pay for consultants to purchase nationally produced goods and for transportation costs. And as in any industry, the basic truth applies: if poverty is your business, more poverty means more business… And the other 40% of foreign aid that stays here in Africa to help build the local economy is far outweighed by corruption and the anti-competitive impositions put on African business: Farm subsidies in the EU, the US and Canada, and the US steel tariffs total over $300bn per year, are larger than the combined national income of sub-Saharan Africa, and dwarf the $50bn given in aid a year. Europe subsidizes its agriculture to the tune of some $35-40 billion per year, even while it demands other nations to liberalize their markets to foreign competition. Dairy subsidy in the EU is $2.50… Read more
The Church in Africa: The world gives Africa a lot of aid, but does not do business with Africa.

Installment 3 of 15 – Andreas Widmer’s remarks at SECAM, Accra Ghana July 29. 2010 The world gives Africa a lot of aid, but does not do business with Africa. Here are some numbers that illustrate what I mean: The population of Africa makes up 12% or 1/8th of the world’s population. According to William Easterly, since 1949 US $ 2.3 Trillion in aid was given by donor countries to the developing world. In the last 50 years, Africa has received around US$ 1 Trillion, roughly $5000 per African living today. 29% of all the aid is given to a continent with 1.8th of all people. That’s over 1/3rd. On the other hand, foreign direct investment into Africa only amounts to 1.4% of worldwide activity. The world gives Africa a lot of aid, but does not do business with Africa.