A microenterprise is defined as a business with five or fewer employees. In the U.S., microenterprises represent 87 percent of all small businesses. These are not one-size-fits-all kinds of businesses, and the organizations that exist to serve them are not either.

Our nation has a wide variety of microenterprise development organizations, but they all share a similar purpose: to help people start or expand their micro business. Most of these organizations are nonprofits, either housed within a larger organization – like the Center for Rural Affairs’ REAP program – or as stand-alone nonprofits. They provide such core services as business training, technical assistance and access to capital. Others may help with access to markets and technology training.

Microenterprise program models and services vary; many serve specific niches with specific services, while others are geared for a “full-service” approach. Some programs are training led, while others are lending led. This diverse and wide mix of microenterprise development organizations within a state contributes to a healthy entrepreneurial climate and establishes a dynamic statewide network of support for micro entrepreneurs.

Most microenterprise programs are known for their excellent collaboration, and have built referral-collaborative networks with others offering business development services in their state. Generally, an entrepreneur seeking microenterprise services can have immediate access to a host of services and expertise no matter which program they contact first. The end result is job creation through the development and expansion of microenterprise businesses.

The Center’s Rural Enterprise Assistance Project (REAP) is a full-service microenterprise development program and operates on a statewide rural basis in Nebraska. You can find out more about REAP and links to national and statewide microenterprise development programs at www.cfra.org/reap/links.

Contact: Jeff Reynolds, REAP Program Director at 402.656.3091 or jeffr@cfra.org for more information.