John L. Hennessy, Chairman of Alphabet Inc., Shriram Family Director of Knight-Hennessy Scholars, and former President of Stanford University, recently delivered the keynote address at Village Enterprise’s Together, We Rise celebration. Drawing on his experience in technology and education, he reflected on how Village Enterprise’s data-driven, human-centered approach is transforming lives across Africa and highlighted how investing in human potential creates sustainable change.
Friends, colleagues, fellow advocates for a better world,
It is an honor to stand before you today and talk about why I believe so strongly in the work of Village Enterprise, and why Together We Rise is a highly appropriate theme at this time. Although Village Enterprise has been working on the challenge of reducing global poverty, I only became aware of the organization a few years ago, when Dianne Calvi received a newly established award from Stanford University. The President’s Award for the Advancement of the Common Good is given to alumni whose work benefits greater society. I had the good fortune to sit next to Dianne at the Commencement Dinner when she received the award in 2023. I had an interest in the challenge of reducing extreme poverty, particularly in Africa. From the experience I had working on the advisory board of the Stanford SEED initiative, I understood how hard it was to make progress, especially at the grassroots level. But as I learned from Dianne that evening that was exactly the challenge that Village Enterprise was attacking.
To understand the impact of Village Enterprise, we must first understand the problem they are addressing. Global poverty is a complex, multi-faceted challenge. For millions, particularly in rural sub-Saharan Africa, poverty is not just a lack of money; it’s a lack of opportunity, a lack of access to basic resources, and a crushing sense of hopelessness. Traditional aid models, while well-intentioned, often fall short because they fail to address the root causes of poverty or empower individuals to become agents of their own change. They may solve a short-term problem, but often do not lead to sustainable change. If you want to reduce extreme poverty, you need to focus on sustainable change.
This is where Village Enterprise distinguishes itself. Their approach is not about handouts; it’s about hand-ups. It’s about investing in the entrepreneurial spirit that exists within every individual, regardless of their circumstances. At its core, Village Enterprise implements a rigorous, evidence-based program that empowers individuals living in extreme poverty to start sustainable businesses. This isn’t just about providing capital; it’s about providing the tools, training, and ongoing mentorship necessary for these businesses to thrive. The gold standard for determining whether an intervention really makes a difference is a Randomized Controlled Trial (RCT). This is the technique used to test a new pharmaceutical, but it is rarely used in interventions in the social sector, because it is hard to set up, hard to measure, and because, unfortunately, the outcomes are not what one had hoped for. The fact that Village Enterprise had demonstrated through a rigorous RCT that they were really making a difference in sustainably reducing extreme poverty sold me. After all, I am an engineer and computer scientist, and a theory of change with data showing that it works is a winner. And, Village Enterprise didn’t just eke by in their demonstration of effectiveness. For every philanthropic dollar invested, they showed an increase in income for an entrepreneur of $5.34! A stunning return on investment for a notoriously difficult challenge.
How does Village Enterprise achieve this? The program typically begins with identifying the poorest households in a community. These are often individuals living on less than $3 a day, struggling to meet their most basic needs. Village Enterprise then provides a holistic support package. This includes a cash grant – a modest seed capital – that allows entrepreneurs to invest in their chosen business. But crucially, this grant is accompanied by comprehensive business training. Participants learn practical skills in financial literacy, market analysis, record-keeping, and business management. They are taught how to identify viable business opportunities in their local context, how to manage their income and expenses, and how to plan for future growth.
Beyond the initial training, the program emphasizes the power of peer support. Entrepreneurs are often grouped into business savings groups, fostering a sense of community and collective responsibility. These groups provide a platform for sharing knowledge, offering mutual encouragement, and engaging in collective savings, which can then be used to expand businesses or address unforeseen challenges. This group-based approach not only amplifies the impact of the training but also builds social capital, a vital ingredient for long-term resilience.
Perhaps the most impactful aspect of the Village Enterprise model is ongoing mentoring. Each business group is assigned a local business mentor who provides personalized guidance and support for a full year. These mentors are not just trainers; they are trusted advisors, helping entrepreneurs navigate challenges, celebrate successes, and adapt their business strategies to evolving market conditions. This sustained engagement is critical, transforming theoretical knowledge into practical application and ensuring that the businesses have the best possible chance of success. In addition, Village Enterprise has been an early adopter of digital tools to support new entrepreneurs and AI-based assistants that can provide mentoring and feedback.
In a world often overwhelmed by the sheer scale of global challenges, Village Enterprise offers a compelling vision of what is possible. Their work is even more vital today, as cuts to various agencies like USAID underscore the critical role of innovative, effective organizations in addressing extreme poverty. By working with entrepreneurs, with NGOs and African governments, and with the private sector and philanthropists, Village Enterprise has demonstrated that extreme poverty is not an insurmountable problem, but a solvable one, through strategic investment in human potential. Their work is a powerful reminder that with the right tools, training, and support, individuals can transform their own lives, create opportunities for their families, and contribute to the economic vitality of their communities.
The improvement in income experienced by participants has broader benefits: reduction in food insecurity, increased attendance by children in school, and access to improved healthcare. These benefits ripple outwards, strengthening entire communities. When individuals are empowered to create their own livelihoods, they become contributors to their local economies, stimulating growth and fostering a sense of dignity and self-reliance.
As a technologist and a long-term board member at Google, I am always asking to see data and questioning how we can do better. Village Enterprise has the same deep commitment to evidence and iteration. They are not content with just doing good; they strive to do good better. They rigorously measure their outcomes, learn from their experiences, and continuously refine their program to maximize its effectiveness. This commitment to data-driven decision-making is a hallmark of truly impactful organizations.
Furthermore, Village Enterprise’s model is inherently sustainable. By investing in individuals’ entrepreneurial capabilities, they are building self-sufficiency, and a community that can educate and support future entrepreneurs. The businesses they help establish are designed to be profitable and sustainable, allowing families to lift themselves out of poverty permanently. This isn’t a temporary fix; it’s a long-term solution. The skills learned, the businesses built, and the savings accumulated continue to benefit families long after they graduate from the program.