Overview

Village Enterprise is a nonprofit organization working to end extreme poverty in rural Africa through entrepreneurship. Since its founding in 1987, it has helped millions of people launch sustainable businesses and improve household livelihoods. In Kenya, the organization has a strong presence, combining direct program delivery with partnerships to integrate its model into local and national systems.

How It Works in Kenya

Targeting Households in Extreme Poverty
Village Enterprise focuses on individuals and families living below the poverty line, many with no prior business experience.

Group-Based Businesses and Savings Groups
Entrepreneurs typically form groups of three to start microbusinesses and join larger Business Savings Groups, which provide mutual support and a platform for saving and lending.

Training and Mentorship
Participants receive training in financial literacy, record keeping, and basic business management. Local mentors support and guide them throughout the program.

Seed Capital Grants
Instead of loans, Village Enterprise provides small grants to help business groups launch their ventures.

Monitoring and Graduation
Regular follow-ups track business performance and household progress, with the goal of helping families graduate from extreme poverty within about a year.

Use of Technology
In Kenya, the organization has introduced digital tools such as mobile apps to improve savings group management and transparency.

Partnerships with Government
Village Enterprise collaborates with county and national governments to integrate its poverty graduation approach into public programs. Counties like Makueni, Taita Taveta, and West Pokot have adopted elements of its model.

Impact in Kenya

Entrepreneurship Training: Over 140,000 individuals trained.

Business Creation: Nearly 45,000 businesses launched.

People Reached: Close to one million lives improved through household-level change.

Women’s Empowerment: A significant majority of first-time entrepreneurs are women.

Cost Efficiency: The cost per person impacted is relatively low compared to other development models, making it a scalable approach.

Strengths

Focus on long-term poverty reduction rather than short-term relief.

Strong evidence base, including rigorous impact evaluations.

Emphasis on women’s empowerment and community-driven savings groups.

Integration with government systems to expand reach and sustainability.

Challenges

Ensuring sustainability of microbusinesses once external support ends.

Uneven outcomes depending on market access, infrastructure, and environmental factors.

Balancing quality with scale as programs expand.

Reliance on donor funding to maintain operations.