Microenterprise and Microlending
What is Microenterprise?
Microenterprise is defined as a business with no more than five employees and start up costs of $35,000 or less.
What is a Microenterprise Development Organization?
Microenterprise Development Organizations provide assistance and training to individuals interested in starting or expanding a microenterprise. Organizations vary, but the majority offer business planning assistance, group trainings, and customized assistance to prepare clients for business ownership. Many of these organizations focus services on low income individuals, minorities and disadvantaged populations.
There are over 500 organizations in the United States that provide services to prospective entrepreneurs and business owners. The Abilities Fund works closely with the Microenterprise Industry and can help you find a nearby organization after you complete our Informed Choices application.
What is Microlending?
Microlending is the act of extending loans to clients of Microenterprise Development Organizations. Microlending was born because traditional banks are not always willing to accommodate very small business loan requests or compensate for individuals whose credit may not be perfect.
Many Microenterprise Development Organizations manage their own loan programs designed specifically to fund business ventures. There are a variety of programs that make loans as small as $500 and up to $35,000 (funding parameters vary by program).
Click here to visit the Association for Enterprise Opportunity website and learn more about Microenterprise.
