by Angela Khan-Thomas
In many parts of the world, entrepreneurship is seen as a path to financial independence and growth. However, in Guyana, where 50% of the population lives on $5 USD or less per day, a distinct form of entrepreneurship exists. For many small business owners, especially roadside vendors, market sellers, and food vendors, running a business is not a strategy for growth but a daily fight for survival. These small entrepreneurs, whom we might call sustenance entrepreneurs, operate with low revenues, high expenses, and limited resources. Though they may keep their businesses alive for decades, they remain trapped in a cycle of poverty, without significant progress or expansion.
Sustenance entrepreneurs operate small businesses that just barely generate enough income to survive. Their businesses, often informal, might involve selling fruits, vegetables, or snacks by the roadside, offering food from makeshift stalls without access to formal facilities, or trading goods at local markets with slim profit margins. These entrepreneurs face several challenges: high operating expenses such as transportation costs and materials, inconsistent revenue due to market fluctuations or weather conditions, lack of financial literacy and access to capital, inadequate infrastructure like no access to sanitary facilities for food vendors, and little to no savings or safety nets, making them vulnerable to emergencies. Despite their hard work, these businesses rarely grow or accumulate wealth, leaving families trapped in poverty across generations. This form of entrepreneurship is more about survival than growth, with most entrepreneurs earning just enough to feed their families but not enough to improve their quality of life or transition to the middle class.
Several factors prevent sustenance entrepreneurs from expanding their businesses. Many small vendors lack access to affordable loans or grants, as traditional banks often require formal documents or collateral that informal entrepreneurs don’t have. Without knowledge of record-keeping, budgeting, or pricing strategies, these entrepreneurs struggle to manage their businesses effectively. Sales fluctuate based on seasonal availability or local events, making it difficult to predict income. Many vendors operate from unstable locations without electricity, water, or sanitation, limiting their ability to offer higher-quality goods and services. These entrepreneurs are often viewed as part of the informal economy and not given the support or recognition needed to thrive.
To help these entrepreneurs break free from the cycle of survival, targeted support must focus on empowerment, education, and access to resources. Microfinance programs can offer small, low-interest loans with flexible repayment terms, helping vendors purchase better equipment, build inventory, or relocate to higher-traffic areas. Mobile banking solutions can give entrepreneurs better access to savings accounts and credit, even without formal bank branches. Offering free workshops on topics like budgeting, record-keeping, and marketing can help vendors manage their businesses more effectively. Training on pricing strategies can prevent vendors from underselling their goods and improve profit margins. Designated vending zones with sanitation, electricity, and water access would enable food vendors to offer better services.
Governments or non-profits can subsidize stalls or provide affordable market spaces to reduce overhead costs. Vendors selling similar products can form cooperatives to pool resources, share transport costs, and negotiate better prices from suppliers. Bulk purchasing through cooperatives can reduce the cost of raw materials and improve profitability. Training vendors to sell online through platforms like Facebook Marketplace or WhatsApp Business can help them reach more customers. Simple digital payment systems like mobile money can reduce the risks associated with cash-only transactions.
Mentorship programs can connect vendors with experienced business owners or professionals who can guide them on strategies for growth. Success stories of other small entrepreneurs can inspire vendors to think beyond daily survival and pursue sustainable growth. Providing access to education and vocational training for the children of vendors can break the cycle of poverty. Health insurance and social safety nets can give families the security to reinvest in their businesses without fear of financial ruin from emergencies.
If these entrepreneurs are provided with the right tools and support, they can transition from survival mode to growth mode. As their businesses expand, they will increase their profits and reinvest in their operations, create jobs for others, contributing to economic growth, improve their quality of life by affording better housing, healthcare, and education for their families, and build savings and safety nets, enabling them to weather financial challenges. This shift can empower families to move into the middle class and break the cycle of generational poverty. More than just surviving, they will be able to thrive, building sustainable businesses and brighter futures for their children.
Sustenance entrepreneurship reflects the reality faced by many Guyanese who work tirelessly every day to keep their small businesses running. With targeted support—such as access to capital, infrastructure, training, and mentorship—these entrepreneurs can break free from the limits of survival and pursue sustainable growth. By investing in the potential of these entrepreneurs, we can empower them to transform their lives, support their families, and strengthen the economy. Sustenance entrepreneurship doesn’t have to be a lifelong struggle—with the right resources, it can become a stepping stone toward prosperity and the middle class.
Contact: angelakhanthomas@gmail.com
