THE DIVERSIFICATION OF MICROENTERPRISE PROGRAMS

USAID has supported microenterprise development for nearly 40 years. USAID’s work helped establish the microfinance industry, which currently conducts nearly $1 trillion a year in transactions and services around the world. It now supports financial inclusion as well as enterprise development through new financial products and services beyond credit—housing loans, health insurance, and mobile or digital payments. Such support has become part of many USAID programs.

As recently as Fiscal Year (FY) 2010, all microenterprise obligations reported through Microenterprise Results Reporting (MRR) were categorized as economic growth activities. However, by FY 2013, economic growth activities represented only 28 percent of the MRR portfolio, and reached just 25 percent in 2016.

In recent years, the majority of microenterprise activities were through programs supporting agriculture development: 69 percent in FY 2013; 52 percent in FY 2016. By FY 2016, USAID saw a significant increase in the percentage of activities that support microenterprise as part of programs under other categories, including: counter-narcotics and conflict mitigation (10 percent), environment (8 percent) health (1 percent), and education (less than 1 percent).

Microenterprises have a role in reaching 16 of the 17 Sustainable Development Goals (SDGs)—from ending poverty to promoting peaceful and inclusive societies. Diversification of microenterprise programs is likely to be continued.