The field of microenterprise development is relatively young, starting to flourish in the United States in the late-1980s and early-1990s. Starting with a handful of programs in the 1980’s, there are now over 600 microenterprise development programs in the U.S.

Microenterprise development programs typically work with disadvantaged populations -- e.g. low-income individuals, women, minorities, laid-off workers, residents within Enhanced Enterprise Zones, recipients of public assistance, etc. -- and work across a multitude of disciplines including economic development, community development, social services, and human development.

The majority of microenterprise development program clients are individuals who want to start or who are already running microbusinesses or microenterprises. The term “microenterprise” typically refers to a business that has five or fewer employees and has start-up capital needs of less than $35,000.

Services provided by microenterprise development programs can include among other things business training, technical assistance, loan programs, life-skills training, and mentoring. Microenterprise programs usually fall into one of three categories:

Even though First Step Fund does offer graduates access to a microloan program, it is a training-led program. Our primary emphasis is on training and technical assistance. The credit piece of our program is offered solely as a support service to the graduates of our training programs.

Did you know . . . ?

• There are more than 24 million microenterprises in the U.S.
• These businesses represent 87% of all businesses
• 18% of all private employment is through a microenterprise, meaning that one out of six U.S.private sector employees works for a microenterprise
• More than 4.5 million new jobs were created in the United Statesby microenterprises between 2000 and 2005
• On average, microenterprises are responsible for 900,000 new jobs created per year
• In 2002 when the nation saw the unemployment rate hit a record high of 5.8% - microenterprises created close to one million new jobs

For more information about the field of microenteprise development please visit our Resources page.

To read just a few of the many microenterprise success stories through First Step Fund please visit our Graduate Stories page.