Jakarta, 22 June 2020 – The programme, led by Youth Business International (YBI) and funded by Google.org, will support underserved micro, small and medium businesses to respond to the COVID-19 crisis.
YCAB Foundation based in Jakarta has been appointed as a delivery partner of YBI in Indonesia. It will now work with YBI to develop and deliver an urgent package of support to struggling local businesses.
The global economy is suffering from an unprecedented shock as a result of COVID-19. With typically tight margins, micro, small and medium businesses are vulnerable to economic downturn. The current pandemic is having a particularly serious impact on business owners and entrepreneurs from underserved communities, including young people (aged 18-35 years), women, and refugees and other migrants. Many are struggling to get through the crisis and need support now.
“I earned my living from selling snacks at a school canteen but because of the pandemic, the school has been closed for more than 2 months. My income has dropped by almost 70%.
I set up a table outside my house to try to sell the snacks but with the lockdown, this has not helped much and I am still struggling to make ends meet,” said Desi Caroline who lives in West Jakarta. This is the situation that has arisen due to COVID-19; more and more MSMEs are forced to close down driving more people into poverty.
More than half of Indonesia’s MSMEs are owned by women hence the unique needs of Indonesian women entrepreneurs and their critical role in driving economic growth is evident. Since 2010 YCAB been providing mission driven ultra-micro loans to mothers of marginalised communities. To ensure alleviation of the generational poverty cycle, the loan aims to improve the family’s welfare whilst supporting education of their children.
In this current situation, building resiliency to ensure the survival of these MSMEs is critical. YCAB will set up a helpline to provide a channel for online chat support service. Through these channels, YCAB will disseminate information regarding COVID-19 health issues and business support from various institutions.
YCAB also will launch an online training to increase the knowledge and provide necessary skills to capture the opportunities available now during the pandemic. The training will involve equipping them with online marketing skills to grow their business and strategies to pivot their business to adapt in response to the current crisis. Supported by YBI and Google.org, YCAB plans to provide assistance to 1,000 women MSMEs who have been most impacted by COVID-19 in Jakarta.
Digitalization of advisory and delivery services together with coaching of YCAB team will be provided for by Google employees in Indonesia. This will ensure a good comprehension and use of all Google applications and products.
Veronica Colondam, CEO and founder of YCAB Foundation, said:
“For women-led businesses, their vulnerabilities as women and as micro business owners are compounded. It is also well established that women have a harder time getting access to finance and heavier burden to take care of the family. This makes the task of running a business during these trying times even more challenging. The current circumstances may also provide unique opportunities for women micro-entrepreneurs. This may be a time of transition for their businesses to move online or otherwise adjust to the new realities. We are excited to be part of YBI’s rapid response recovery programme funded by Google.org to empower more women micro-entrepreneurs with the skills they need to thrive in the new normal.”
The global programme is led by YBI, an experienced network of enterprise support organisations. It will support over 200,000 small and medium business owners across 32 countries across Europe, the Middle East, Africa and Asia Pacific to respond to and recover from the impact of COVID-19.
Anita Tiessen, CEO of Youth Business International, said:
“The world is changing dramatically from day to day and I feel deeply for business owners everywhere, especially those running smaller businesses and are from underserved communities, who are often least able to bear the economic shocks of this crisis.
“In the face of these challenges, I have been incredibly inspired by the quick response of our network to support business owners around the world. YBI, with Google.org’s new funding commitment, will help us sustain and extend this support throughout 2020, ensuring more than 200,000 businesses can get the advice they need right now to navigate this crisis.”
Rowan Barnett, Head of Google.org, EMEA & APAC, said:
“The coronavirus outbreak is taking a devastating toll on lives and communities, and small businesses are facing unprecedented challenges as they struggle to stay afloat. With this grant to Youth Business International, alongside a series of Google initiatives and products, we hope to help some of the most vulnerable small businesses find a way through the crisis.”
Notes to editors
Yayasan Cinta Anak Bangsa (YCAB)
YCAB Foundation was established in 1999 and is the founding and flagship organisation of YCAB Social Enterprise Group. Ranked #32 on TOP 500 World NGO/SPOs by NGO Advisor in Geneva, YCAB’s mission is to break the generational poverty cycle using financial inclusion as an instrument to enable education. With 37 schools in 11 provinces in Indonesia, YCAB has successfully impacted more than 3.5 million youth, cultivated provided almost 185,000 women MSMEs and provided more than 600,000 loans through YCAB Ventures.
For more information on YCAB, please visit https://ycabfoundation.org
Youth Business International (YBI)
YBI is a global network of expert organisations in over 50 countries supporting underserved young people to turn their ideas into successful businesses, creating jobs and strengthening communities. Our vision is a world where youth entrepreneurship is recognised for driving sustainable economic development and all young people who want to set up a business can fulfil their potential. We connect our members to share expertise and collaborate on solutions to common challenges. Visit www.youthbusiness.org.
Google.org, Google’s philanthropy, supports nonprofits that address humanitarian issues and apply scalable, data-driven innovation to solving the world’s biggest challenges. We accelerate their progress by connecting them with a unique blend of support that includes funding, products, and technical expertise from Google volunteers. We engage with these believers-turned-doers who make a significant impact on the communities they represent, and whose work has the potential to produce meaningful change. We want a world that works for everyone—and we believe technology and innovation can move the needle in four key areas: education, economic opportunity, inclusion and crisis response.