WHAT IS MICRO ENTERPRISE?
Micro Enterprise enables individuals to achieve economic self-sufficiency by starting and growing their own businesses. These small businesses – less than $50,000 in start-up capital and employ five or fewer people – are the greatest job generator in boom times and recessions. Many start as part-time or home-based businesses.
WHAT IS MICRO ENTERPRISE DEVELOPMENT?
The most evident example of Micro Enterprise development is microfinancing, which is small loans – usually less than $50,000 – that are made to entrepreneurs to help with business start-up or expansion.
These loans are some of the safest and successful investments because they are backed by other Micro Enterprise development services, such as ongoing business training and technical assistance, incubators that provide physical office space and equipment, mentoring and coaching, and access to markets and technology.
Micro Enterprise development reduces the risk associated with running a business and increases the chances of long term success.
WHO PROVIDES MICRO ENTERPRISE SERVICES?
Micro Enterprise services are usually provided by community-based nonprofit agencies and are funded through partnerships with government agencies, foundations, private financial institutions and individuals.
HOW DOES MICRO ENTERPRISE DEVELOPMENT BENEFIT THE COMMUNITY?
- Increases the number of jobs created by new and expanding very small businesses
- Improves the local business environment, increasing commercial occupancy and development, and sales tax collections
- Increases the diversity and availability of goods and services in the community
- Reduces default and delinquency rates of small business loans
- Reduces public assistance costs, such as welfare and unemployment
HOW DOES MICRO ENTERPRISE DEVELOPMENT BENEFIT INDIVIDUALS?
- Improves business sustainability and profitability
- Improves economic self-sufficiency for families in poverty
- Increases business skills and self-esteem
- Improves access to community resources and credit opportunities
HOW CAN CAMEO FURTHER MICRO ENTERPRISE IN MY COMMUNITY?
- By providing training and technical assistance for Micro Enterprise service providers
- By providing information on Micro Enterprise program funding, research, resources, and partnerships
- By hosting public education events that showcase the field of Micro Enterprise development and make the case for community support
- By facilitating community efforts that support Micro Enterprise development
- Through advocacy efforts on a federal, state, and local level
MICRO ENTERPRISE AT THE NATIONAL LEVEL
If one in three Micro Enterprises in the United States hired an additional employee, the U.S. would be at full employment. Download AEO’s May 2011 report, The Power of One in Three.
