Thought Leaders II
Goldman Sachs: Investing in Entrepreneurs Worldwide
In a new project with the American University in Cairo, Wharton will help prepare women entrepreneurs to create successful businesses in emerging markets. The project, part of Goldman Sachs's sweeping 10,000 Women initiative, focuses on women as key drivers of economic progress in the developing world.
Educating women propels economic progress in the developing world. "Research has shown that when you invest in women in these economies, the money goes back into families and communities," says Rita McGlone, senior director of Wharton's Aresty Institute of Executive Education. Earlier this year, Wharton joined with the American University in Cairo (AUC) to begin developing the Certificate Program for Women Entrepreneurs, a new program for women entrepreneurs throughout North Africa and the Middle East.
We recognize that in order for the global economy to be successful, we are going to need to invest energy and resources in the folks who have ideas but don't have the resources to implement them. We have to begin to invest in developing economies, particularly in entrepreneurship and leadership.
–Rita McGlone, Senior Director, Aresty Institute of Executive Education
The Wharton project is part of the five-year 10,000 Women initiative of The Goldman Sachs Group, Inc., drawing together partner schools around the world to provide business and management education to 10,000 underserved women, predominantly in developing and emerging markets.
The Fastest Route to Economic Growth
Educating women does more than promote equality; it drives progress. Goldman Sachs research found that investing in education for women may have the highest social return of any investment, when one considers the range of income and health outcomes for such women and their families. According to the study, investing in girls' education leads to increased wages and faster economic growth.
The study found that in the BRICs (Brazil, Russia, India, and China) and N-11 countries, greater investments in female education could yield a "growth premium" that raises trend GDP growth by about 0.2 percent per year. Narrowing the gender gap in employment — which is one potential consequence of expanded female education — could push income per capita as much as 14 percent higher than baseline projections by 2020, and as much as 20 percent higher by 2030.
Yet very few women in Africa and other developing countries have access to the education they need. Goldman Sachs reports that among the 50 major business schools in Africa, on a continent of more than 900 million people, only 2,600 women are currently enrolled in local MBA programs.
Refining Skills into Business Knowledge
The Wharton/AUC initiative will target college-educated women. One program will be designed to refine the skills of entrepreneurs already running their businesses. A second will prepare new entrepreneurs. While designing and developing the program, the two schools will also be building local capacity in Egypt that will help facilitate future programs.
In addition to the program for women entrepreneurs, Wharton is planning to launch the Knowledge@Wharton 10,000 Women Education Portal, drawing upon the School's successful online research journal Knowledge@Wharton. This portal will offer online knowledge and educational resources to women around the world. A third initiative, through Wharton's Joseph H. Lauder Institute of Management & International Studies, will develop case studies of entrepreneurs, companies, and industries in developing countries, with an emphasis on Brazil, Mexico, Africa, the Middle East, and China.
"This initiative is focused on a population that is underserved but holds bright promise," says McGlone. "Many women entrepreneurs in developing countries have instinctive skills. This program will empower them by helping to formalize those skills with sound business knowledge and frameworks."
Bringing Africa to Philadelphia
Even as Wharton takes its knowledge out to Africa, the School is also helping to bring African executives to campus. In collaboration with the Africa-America Institute (AAI), Wharton has brought more than a dozen African managers to programs, from one-week sessions to the longer Advanced Management Program and Executive Development Program. The AAI, in partnership with the Coca-Cola Africa Foundation, works wiwth business schools in Africa and around the world to build business knowledge and leadership on the continent. This initiative has led to a significant increase in African participation in Wharton programs, adding to classes that are already globally diverse.
"Clearly it is part of our mission to be a force for good in the world," McGlone says. "We recognize that in order for the global economy to be successful, we are going to need to invest energy and resources in the folks who have ideas but don't have the resources to implement them. We have to begin to invest in developing economies, particularly in entrepreneurship and leadership."
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