For Immediate Release:                                                                                                                                                            Contact: Adam J. Keigwin
Senator Leland Yee's Office
(916) 256-5758
February 21, 2007                                                                                                                                                                       

                                                                 
 

Yee Introduces Bill to Promote Microenterprise Development


Legislation would provide up to $100,000 grants to local microenterprise development providers



SACRAMENTO – Senator Leland Yee (D-San Francisco/San Mateo) today introduced legislation establishing a grant program to help spur microenterprise development.  Microenterprises, which are businesses that start with less than $35,000 in equity and employ five or fewer employees, currently comprise eighty-eight percent of all businesses in California. 

“There are nearly 2,700,000 microenterprise businesses in California that are creating jobs, paying taxes, and helping to revitalize our communities,” said Senator Yee.  “SB 446 will help spur more microenterprise development in the state, greatly improving our economy, increasing jobs, and assisting many minority and women owned businesses.”

SB 446 requires the Business, Transportation & Housing Agency to administer a program that provides funds to qualified microenterprise development providers. Grants ranging from $50,000 to $100,000, would be made available to microenterprise development providers over a two-year period.

While microenterprise development services are vital to the communities they assist, the services available fall short of meeting the growing demand.  Microenterprise programs are faced with waiting lists for training programs and consultants preparing business plans and micro-loan applications are backlogged.  SB 446 will assist such providers in meeting this demand.

As major job generators, microenterprises account for 19.2 percent of all employment in California and $238 billion in taxable revenue.  In California, it is estimated that there are over 150 programs and agencies that provide small business development services.

“Microenterprises fuel our local economy, said Senator Yee. “Nearly eighty percent of all new job growth in California between 1999 and 2003 came from microbusinesses. By supporting these storefronts, family restaurants, and home-based business owners, we help ensure a more stable foundation for California’s economy.”

Last year Yee, who was then an Assemblyman, along with the Women’s Initiative for Self Employment sponsored a one-day conference titled, “Take Flight With Your Business: A Business Fair for Women.”  The conference helped low income women start their own small business. 

A recently released report of Women's Initiative graduates revealed considerable income and job growth for program participants.  In fact, the annual household income for participants entering the program is just $14,000. Two years after Women's Initiative training, their income leaps to over $37,000. A total of 205 new jobs were created by Women's Initiative clients this year and another documented 179 jobs were retained from previous years.

The average Women’s Initiative client business pays $14.49 an hour in wages, over double the minimum wage in California. This wage is especially impressive given that many client businesses operate in sectors such as housekeeping and food service that traditionally pay close to minimum wage.

 “We are grateful that Senator Yee has chosen to author legislation in support of small business development,” said Sharon Miller, Board President of the California Association for Microenterprise Opportunity (CAMEO).  “Small <<image001.jpg>> business ownership is often a solution for individuals struggling to overcome poverty, find jobs, and reach financial stability.  This bill will provide a small investment in microenterprise development that will make a big difference in people’s lives, helping them become self-reliant and productive members of their communities.”

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