MICROCAPITAL STORY: Google.org of California Announces $3m Grant to Technoserve of Connecticut in Order to Support Small and Medium-Sized Enterprises (SMEs) in Moving Beyond Microfinance

Google.org, the charitable arm of Google, announced, in a press release, a multi-year grant of USD 3 million to Technoserve, a US based nonprofit organization that provides training and networking opportunities to small and medium sized enterprises (SMEs) in the developing world. This grant will provide general support to expand the organizations private-sector initiatives in Africa. Since 2006 Google.org has awarded Technoserve USD 1.7 million to develop and implement a business plan competition to support entrepreneurs in Ghana and Tanzania.

This grant was awarded as part of Google.org’s initiative to Fuel the Growth of Small and Medium-Sized Enterprises by increasing the flow of risk capital to SMEs in the developing world, primarily India and East Africa. This market segment is often referred to as the “missing middle” because it is largely made up of businesses that are too large to benefit from micro-loans, but not large enough to benefit from traditional banking services. Even though Google.org had not officially stated this initiative until January 18th, 2008, it has been actively supporting SMEs since its inception; in 2005 MicroCapital reported on a USD 5.2 million grant to the Acumen Fund to build and support innovative enterprises serving the poor through market-oriented approaches. Additionally, Google.org has provided free advertising and USD 200,000 to the Grameen Foundation USA in order to assess the potential for mobile applications to provide information for rural enterprises and households in East Africa.

Technoserve was founded in 1968 by Ed Bullard with the goal of helping rural people in developing countries benefit from the power of private enterprise. Headquartered in Norwalk, Connecticut, Technoserve currently works in 19 countries throughout Latin America, Africa, Asia, and Europe and encourages entrepreneurship by hosting Business Plan Competitions and Entrepreneurship Training courses. Technoserve trained 4,000 entrepreneurs in 2006.

Google.org was established in Mountain View, California, in 2004 by Google founders, Larry Page and Sergey Brin. Google.org manages the Google Foundation, as well as one percent of Google’s equity to address climate change, poverty, and emerging disease. Its five major initiatives include: Develop Renewable Energy Cheaper Than Coal, Accelerate the Commercialization of Plug-In Vehicles, Predict and Prevent, Inform and Empower to Improve Public Services, and Fuel the Growth of Small and Medium-Sized Enterprises.

By Jacob Keller

Additional Resources:

Google.org: Home; awarded; Fuel the Growth of Small and Medium-Sized Enterprises; Google Foundation; five major initiatives

Technoserve: Home; encourages entrepreneurship

Believe Begin Become: business plan competition

Brookings Institution: missing middle

Acumen Fund: Home

Grameen Foundation USA: Home

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