Mirco-Enterprise Growth and Poverty Reduction

This is a critical examination of the relative importance of electricity in the economics of growth, poverty reduction and the success of micro-enterprise with a direct impact on livelihood. While not all governments in developing countries seem to acknowledge the importance of the relationship between energy (electricity) and poverty reduction, some do recognize it as an essential link when promoting economic development. This research provides empirical data on the link between electricity and poverty reduction. It considers the role of electricity in poverty reduction through an assessment of the impact of acquiring and continuous access to electricity by micro enterprises and the impact of the changes on the livelihoods of their household. This describes the problem formulation thus: Does acquiring access to electricity have any effect on the viability of micro enterprises (ME) and poverty reduction? The focus is on the changes in the livelihood of the ME. Six main assets are identified as important to the livelihood of ME; human, social, technological, natural, physical and financial assets.