California Association for

1
What is a Microenterprise?

• Can be started for under 35,000
• Has five or fewer employees
• Creates a job for the owner
• Earns under 100,000 a year
• Examples include childcare, landscape
  maintenance, arts and crafts, catering and food
  production, computer repair service, beauty and
  nail care, and most other homebased businesses.

2
What is Microenterprise Development?

• Business Management Training
• Consulting
• Workshops
• Microloans
• Marketing Networks
• Support services such as childcare,
  transportation, language skills and computer
  training

3
The Success of Microenterprise in Providing
Long-Term Self-Sufficiency

• 61 reduced their dependency on public assistance
• 72 gained household income
• 53 moved out of poverty
• On average, created 1.5 full or part-time jobs
  per business

4
Community Benefits of Microenterprise Development

• Reduction in public assistance costs
• Job creation
• Improved local economic development
• Increased availability and diversity of goods and
  services
• Reduction in business loan delinquency and
  default

5
The Importance Of Micro-Businesses in California

• 2,697,510 businesses in California are
  microenterprises.
• This is 88 of all businesses

6
Workers who could most benefit from
Microenterprise Development

• Displaced Workers
• Job Trainees
• Underemployed
• Homebased
• Limited English Speakers

7
Individual Benefits of Microenterprise Development

• Increased income and net worth
• Safety net leading to economic self-sufficiency
• Increased business, financial management and
  interpersonal skills
• Access to resources, market and credit
  opportunities