Macro And Microeconomics Enterprise Development (Essay Sample)

Macro and microeconomics enterprise development
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Summary, One Acre Fund
The organization focuses much on addressing the emerging problems in developing countries where most people languish in poverty with no hope in sight. Among the leading causes contributing to such problems has been the existence of lack of basic infrastructure which affects how many farmers are likely to capitalize on the existing opportunities while delivering their goods as well as services to the market. As a result, most of such products end up losing their value due to their perishable nature thus wasting a lot of resources annually. This is also contributed by the unreliable cold chain supply network. A major hindrance to these networks is lack of reliable asset-based financing and agricultural training services. To address this problem, One Acre Fund has, however, played a great role while reducing the gap in the market and as well availed an all-inclusive package. Farmers are now able to access credit facilities as well as great training which has enhanced their productivity thus adding value among such communities.
For One Acre Fund, the problem that the enterprise is trying to address is a high number of individuals suffering from hunger and poverty due to poor agricultural services and perishable foods that are wasted annually. This is as a result of unreliable cold chain supply networks. A major hindrance to these networks is lack of reliable asset-based financing and agricultural training services. To address this problem, One Acre Fund is offering an all-inclusive service package. This included access to a credit facility, training of farmers to enhance their productivity while still insuring their products in the process of gaining access into the market. The training provides farmers with knowledge and new advanced methods for production of compost, application of fertilizer in the farm and control of erosion to generate more yields under less cost. Through the use of a good approach most farmers have managed to improve their output as well as income thus enhancing their loyalty to the establishment. One Acre Fund looks at helping local farmers maximize agricultural profit and sustainability. Even with great impact, and you are only impacting 1,000 people in five years, it will be hard identifying untapped potential, but this sustainable business model yields forth faster results. For instance, in 2015, the organization served 305,000 families in East Africa. This number grew to a projected 420,000 families in the year 2016, with a turnover of USD 29 million.
The organization operate in East Africa; Kenya, Uganda, Malawi, Burundi, Rwanda as well as Tanzania, with headquarter in Bungoma, Kenya. It has partnered with Syngenta Foundation, to provide and supply farm inputs to farmers at the beginning of the agricultural season either on credit and, or retail. The organization lends its loan at USD 200 to a cohesive joint-liability group of 4-10 farmers, while the membership is only USD 70. A security deposit of USD 11 is taken upfront from farmers beyond giving the loan, while some loans are forgiven due to crop failure. This ensures mitigation of credit risk through social collater...