From Handouts to Hope: Going Beyond Aid with Job Creation

There are many ways to fight poverty, each tackling one aspect of the complex problem. Expanding education gives children skills they need to get better jobs as adults. Providing health care helps people live longer, happier and more productive lives. 

As organizations and governments address the many aspects of poverty, they often provide aid. For families struggling to survive, aid is essential.

For example:

• Charities may hand out malaria nets and medicine because some families can’t afford the $3 or so per person needed to protect themselves.
  
  
• Schools may provide free education because low-income families can’t cover the fees.
  
  
• Governments provide food assistance to people who would otherwise go hungry.

Aid helps people survive and can even lift some out of extreme poverty, which World Bank defines as living on less than $1.90 a day. But it doesn’t change the long-term economic reality for families and countries.

It also doesn’t create new opportunities for growth. In fact, studies show that too much foreign aid can sometimes slow economic growth over time. Aid may make people less poor, but it has yet to end poverty.

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Download Beyond Aid: The Case for Employment as the Foundation of Poverty Alleviation

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Why Jobs Are the Key to Real Change

A job can transform a person’s life. Jobs give families the power to pay for their own needs and build a more secure future. Jobs also provide dignity, independence, and the chance to grow.

At Sinapis, we focus on creating jobs in developing economies. We help entrepreneurs by giving them the skills, connections, and capital they need to expand their businesses. As their companies grow, they hire more people. So far, the 2,810 business owners who have gone through our programs have created nearly 13,000 jobs in places where they are needed most.

These jobs are more than just numbers — they are hope and stability, which create lasting change for entire communities.

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How Job Creation Drives Economic Growth

In wealthier countries, job growth has always been linked to economic growth. The same is true in developing nations. In Kenya, for example, job creation and the country’s overall income have grown at nearly the same rate over the past 35 years.

But where do most of these jobs come from?

• In emerging markets, micro, small, and medium-sized businesses (MSMEs) have created 70% of new jobs over the past decade.
  
  
• In Kenya, MSMEs are even more vital — they account for 96% of all new jobs.
  
  

Simply put: Without small businesses hiring, Kenya’s economy cannot grow.

But not all jobs have the same impact. Informal jobs (those without legal protections or taxes) can reduce extreme poverty, but they don’t drive long-term growth. Only formal jobs (legal and regulated employment) create the stability and benefits that help reduce poverty over time. MSMEs that create formal jobs play a key role in building stronger economies.‍

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Download Beyond Aid: The Case for Employment as the Foundation of Poverty Alleviation

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More Than Jobs: The Power of Decent Work

At Sinapis, we didn’t just want to create jobs — we wanted to create good jobs. In late 2024, we surveyed and interviewed employees working at businesses run by Sinapis program graduates. We wanted to see how these jobs were impacting their lives.

Here’s what we found:

Fair Pay:

• Almost all the employees — 84% — made more than the minimum wage.
• Despite economic challenges, salaries increased by 17.5% over two years.
• Many business owners paid higher-than-average wages to attract and keep skilled workers.
• Simon Njuguna, owner of Astute Artisans, shared: “I wanted to inspire my competitors. It’s not just about making money — it’s about building a strong team.”
  
  

Stable Jobs and Safe Conditions:

• Two-thirds of employees had been with the same company for at least two years, showing job stability.
• To protect their workers, 68% of the businesses had safety policies in place.
• Charity Muthoni, CEO of Pearl Cleaning Services, said: “I make sure all my employees have insurance because their safety matters to me.”
  
  

Equal Opportunities for Everyone:

• Women held 43% of the formal jobs created by Sinapis-supported businesses, while youth made up 53%.
• Showing a dedication to helping employees grow and develop new skills, 87% of business owners mentored their staff.
• Grace Mbugua, founder of Jeilo Collections, shared how one of her employees started as a cleaner but eventually became a skilled stitcher, doubling her pay.
• Eva Magembe, CEO of Dubai Supermarkets in Uganda, made it a point to hire single mothers, describing them as hardworking and dependable.
  
  

Benefits and Worker Protection:

• Giving their staff access to social security benefits, 77% of businesses paid taxes for their employees.
• Even though it wasn’t required in East Africa, 52% provided health care benefits.
• Most businesses — 78% — offered meals to employees, helping them stay energized throughout the workday.
• Eva Mugo, CEO of Aberdare Cottages, even provided housing and meals for her staff, saying: “I do it because I care. It’s only fair.”
  
  

Opportunities for Growth:

• About 83% of businesses invested in employee training.
• Gloria Komwe, CEO of BB Collection, explained: “I train my workers to deliver high-quality products and service. I also do it to prepare them for future jobs, if they ever leave.”
  
  

Employee Voices:

• Although only 14% of businesses had formal rules about workers' rights, many still gave employees a voice.
• For example, Virginia Ndumbi, CEO of Viwatech Auto Spares, said her employees created a welfare fund to support one another during hard times.
  
  

Creating a Path to Lasting Change

Job creation isn’t just about boosting statistics — it’s about transforming lives. With each new job, families gain stability, communities grow stronger, and entire countries become more prosperous.

At Sinapis, we believe that entrepreneurship is the key to fighting poverty. Our business owners aren’t just building companies — they’re building brighter futures. And with every job they create, they are helping break the cycle of poverty, one family at a time.

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Download Beyond Aid: The Case for Employment as the Foundation of Poverty Alleviation

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