Microenterprise Development as an Economic Adjustment Strategy

摘要

Microenterprise development has been promoted as a way to alleviate poverty and211u001ecreate jobs both in the United States and in developing countries. Unlike most 211u001estrategies designed to help people become economically self sufficient, 211u001emicroenterprise programs help many people do a better job of something they are 211u001ealready doing to survive--starting small businesses. Instead of trying to channel 211u001epeople into the mainstream economy as wage-earners, these programs teach those 211u001ewith an interest in and inclination for self employment how to strengthen their 211u001eentrepreneurial skills, and start and stabilize their businesses. Existing 211u001eresearch on microenterprise programs tend to focus on their effectiveness as 211u001esocial welfare programs rather than as economic development tools. This research 211u001ehelps to fill that gap. The authors focus on the relationship between the 211u001emicroenterprise strategy and the local economy in order to determine whether and 211u001ehow microenterprise programs can help to alleviate economic distress. Case 211u001estudies of six microenterprise programs across the country--in California, New 211u001eMexico, Iowa, Minnesota, Maryland, and Massachusetts--constitute the core of this 211u001estudy. The authors make many findings, grouped in four categories: the overall 211u001efield, the individual programs, the business assisted, and the entrepreneurs. 211u001eDespite the small scale and relatively low employee job creation of these firms, 211u001emicroenterprise development has cost-per-job appraisals comparable to more 211u001etraditional forms of economic development--between $4,114 and $6,155.