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Micro-Enterprises Analysis

Defining Characteristics of Micro Enterprises

The Microenterprise development is a strategy with at least twenty-five year history in the United States (U.S Small Business Administration Office of Advocacy, 2010). The potential the strategy has on job creation has made it achieve great attention. The present data suggest that since the great financial crisis, the micro enterprise development groups have added their lending by twenty five percent (Harrison & Mason, 2010). The MOD has been adopted by many organizations as a strategy to alleviate poverty and the local economic development. The strategy has been championed as a way to foster personal and community development in the United States (U.S Small Business Administration Office of Advocacy, 2010).  Theory of change contends that skills development and financing can create entrepreneurial capacities of people who have lacked access to the mainstream business capital and services, these results to business startups and growth (U.S Small Business Administration Office of Advocacy, 2010). The micro-enterprise increases long-term financial security.

Growth Sectors and Current Trends

The profiles of the people served by the micro enterprises in the United states  range from women, people without a college degree, African American and those with a median income (Harrison & Mason, 2010). The Micro entrepreneurs who run the micro-enterprises are made up of a broad organization of low-income individuals. The people work to provide for their families by operating their businesses. The micro enterprise functions under the control of major organizations whose main goal is the micro enterprise growth and programs that operate within the diverse organizations. The goal of the large organization includes economic development, employment, training, and housing (U.S Small Business Administration Office of Advocacy, 2010). The target market for the micro-enterprise development is defined broadly as the aspiring entrepreneurs and the people whose business employs five or fewer workers including the owner

Examples of Micro-Enterprise

Summer Alexander research and marketing is a good example of a micro-enterprise. The small firm provides marketing operations that include research, strategic market planning and media placement. The company has less than five employees with Summer Alexander acting as the head. Richmond taxis, is a micro enterprise that provides transportation services to its customers, it is located in Richmond Virginia. The small company has a website and four employees who serve as drivers. Due to its size, Richmond Taxis Company can only serve in the local area.

Organizations that Support Micro-Enterprise

Some good examples of organizations that support micro-enterprises are the Jefferson Economic Development Institute (JEDI) and ACCION U.S.A. The mission of Jefferson Economic Development Institute is to increase the economic well being of people and communities by developing business and the local wealth creation (Jefferson Economic Development Institute, 2006). The organization is a nonprofit and gives vital tools to individuals, business and groups that are determined to make a livelihood (Jefferson Economic Development Institute, 2006). The organization creates awareness concerning the micro enterprises in California. It provides training and consultancy to micro-enterprises (Jefferson Economic Development Institute, 2006). ACCION USA serves the low and moderate-income groups (Cerveira, nd). The organization provides access to business finances and counseling, their focus is on the micro-entrepreneurs especially the minorities and immigrants. The group is an affiliate of ACCION International, an organization that operates with a mission of alleviating individuals from poverty by providing them with the right tools (Cerveira, nd).

 

Reference

 

Cerveira, R. (nd). ACCION USA; Microfinance and Financial Education For Small Business. Retrieved 2 6, 2015, from ACCION USA: www.accionusa.org

Harrison, R., & Mason, C. (2010). The role of Informal Venture capital in financing the growing firm. In B. R, & E. Davies, Financing for Growing firms. New York: Routledge.

Jefferson Economic Development Institute. (2006, nd). About JEDI. Retrieved 2 6, 2015, from Jefferson Economic Development Institute: http://www.e-jedi.org/about.html

U.S Small Business Administration Office of Advocacy. (2010). Small Business Research Summary: An Analysis of Small Business and Jobs. Washington, DC: U.S Small Business Administration Office of Advocacy.