ACR 76 recognizes the month of October 2005 as Microenterprise Development Month. This measure acknowledges the contributions of microentrepreneurs and the value of microenterprise development to the California economy.
What is a microenterprise? A microenterprise is a business with five or fewer employees, which requires $35,000 or less in start-up capital and which does not have access to the traditional commercial banking sector.

Who are microentrepreneurs? Microentrepreneurs are small, family-owned businesses, independent contractors, home-based business owners, and the self-employed. Microentrepreneurs are artists, barbers, bakers and childcare workers, gardeners, restaurant owners, inventors, repair people, photographers, physical therapists and tutors, among others. Self-employment is a particularly viable option for those who are unemployed or underemployed, for people with disabilities, and caregivers who need flexible work hours.

The Effect of Microenterprise on the California Economy:

• Microenterprises represent 88% of all business in California. This equates to 2,697,510 economic generators creating jobs, paying taxes, and revitalizing Main Street.
• Microenterprise accounted for 19.2% of all employment in California in 2003, providing jobs for 3.3 million people.
• In 2002, microenterprises generated over $238 billion in taxable revenue for the state.
• A sampling of microenterprise development programs in California showed that on average, a program serves 165 clients a year; 76% are women, 45% are ethnic minorities, and 61% are low income.

What is microenterprise development?
Microenterprise development is the process of providing training, technical assistance, support services, and microloans to individuals starting and operating microenterprises. Microenterprise development services are usually free or very low cost for those of low and moderate income. There are over 100 non-profit providers of these services throughout the state, and they have a proven track record of success in cultivating more and better microenterprises.

Microenterprise Development Month is intended to help spur the growth of microenterprises, microenterprise development provision, and the economy of the State of California.


Support
AnewAmerica Community Corporation
Arcata Economic Development Corporation
Economic Development Division, County of Humboldt
Office of Workforce and Economic Development,
   City College of San Francisco
Vermont Slauson Economic Development Corporation
Women at Work
Women’s Economic Ventures

Opposition
None on file.


Votes
Assembly Rules Committee, August 25, 2005
Ayes: 8
Nos: 0
(Consent)

Senate Floor, September 7, 2005
Ayes: 40
Nos: 0

Contact: Dr. Renée Pittin (916) 319-2012