What
is Microenterprise?
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A
microenterprise business is a small business with five or fewer
employees that requires less than $35,000 to start, and is too small
to qualify for commercial banking services.
There
are an estimated two million microentrepreneurs in the United States
today, offering a variety of services and products from home-based
day care and auto repair to specialty foods and scrap books.
History of Microenterprise Internationally
The
concept of microenterprise was founded by Dr. Mohammad Yunnus
and emerged in the developing world through the Grameen Bank
(Bank of the Poor) in the country of Bangladesh in 1976.
The bank was established the with the practice of making small
loans to the poor - predominantly women --to help them obtain
economic self-sufficiency.
The
fundamental principle behind the Grameen Bank is that credit
is a human right.
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Dr.
Mohammad Yunus |
Women
participate in a Grameen Bank meeting |
The
Grameen Bank has been extremely successful, reporting a 97%
rate of repayment. Dr. Yunnus is considered to be the architect
of the microcredit revolution. |
Microenterprise
in the USA |
Microenterprise
in the United
States is different from other models used around the world,
but its goals and core values are the same.
The philosophy of microenterprise in the U.S. recognizes the
fundamental ability of people to apply their individual talents,
creativity and hard work to better their lives.
Microenterprise
programs build on the unique ideas and skills of entrepreneurs
and would-be entrepreneurs by providing business assistance
and small amounts of credit to support the development or start-up
of a small business. |
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Microenterprise programs not only provide access to credit,
but also offer technical assistance in supportive environments
that reinforce the belief that people can, and do, improve their
lives through initiative and hard work. |
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Why
Microenterprise?
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Microenterprise
is a proven way to earn extra income to supplement household
income.
Microenterprise helps women have the flexibility they need
to balance their home and work responsibilities.
It
helps Immigrants and refugees have sustainable income in cases
where they lack the necessary certifications, licenses, language
skills, or networks to find professional jobs for which they,
in their own countries, may be qualified. |
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| For
many people with lower incomes, microenterprise provides the
opportunity for individuals to develop their talents and skills
and use them to improve their financial wellbeing.
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Does
Microenterprise Make a Difference? |
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Yes
it does! For more than 15 years, microenterprise programs
in the U.S.
have created
jobs, helped people generate income, build their assets and
enhance their talents and skills.
Microenterprise has been successful
in helping people overcome the common barriers of race, gender,
ethnicity, income and job market fluctuations. |
| Tonya
Iongi and Sue Barber, owners of Floral Keepsake Collections. |
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