Micro-enterprise
The bank was established for the purpose of making small loans to the poor − predominantly women – to help them obtain economic self-sufficiency.
As a subcategory of small businesses, with sales and assets valued at less than $250,000 per year, they generally have less than five employees, including the owner.
The basis of microenterprise in the U.S. is entrepreneurship, recognizing that people have the right to apply their individual talents, creativity, and hard work to better their lives.
Most organizations in the field also focus their services on those microentrepreneurs who, as defined by federal government standards, are low-to-moderate income.
By definition, most of these entrepreneurs are minorities, recent immigrants, women, disabled or for other reasons have special challenges that reduce their ability to access traditional credit and other services.
Microenterprises are said to add value to a country's economy by creating jobs, enhancing income, strengthening purchasing power, lowering costs and adding business convenience.
The International Fund for Agricultural Development (IFAD) Vietnam country programme supports operations in 11 poor provinces.
[11] In the Dominican Republic, a nationwide survey conducted in 1992 revealed that 330,000 micro and small enterprises created employment for 26 percent of the economically active population.
[14] Because microenterprises typically have little to no access to the commercial banking sector, they often rely on "micro-loans" or microcredit in order to be financed.
Plan for Achieving Self Support is a program offered by the United States Social Security Administration (or SSA) to encourage persons that are Supplemental Security Income (or SSI) eligible who are disabled to set aside moneys for various reasons: training, schooling and funding microenterprise as a Work Goal.
The NEIS (New Enterprise Initiative Scheme) is a government program in Australia, which assists unemployed people to start their own businesses.
In the United Kingdom, the Office for National Statistics (ONS) aims to ensure that micro-enterprises are not repeatedly asked to participate in surveys which can be time-consuming for business owners.
Microloans may be used for general business expenses[16] such as, working capital and tangible assets, such as inventory, furniture, and equipment.
Today, microbusinesses can have a much larger impact; products and services can be exchanged at previously unimagined volumes, distances, and speeds.
