Transcript URBAN PLANNING

ENTERPRISE OPPORTUNITY
MICROENTERPRISE IN
THE UNITED STATES
The Association for
Enterprise Opportunity
(AEO)
Prosperity for All Through
Entrepreneurship
Prosperity For All Through Entrepreneurship
ENTERPRISE OPPORTUNITY
Microenterprise
in the United States
24 million microenterprises (88%)
31 million jobs (18% of private sector)
10 million potential ME clients
Over 500 organizations: combined
average of 250,000 people per year
 Microloan programs made an average
of 42 loans per year
 Programs lend to borrowers with
credit scores as low as 525.
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Prosperity For All Through Entrepreneurship
ENTERPRISE OPPORTUNITY
AEO
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Membership Organization
18 Years Old Non-Profit
Board of Directors
Practitioner Members
Consultants
For Profit Organizations
SMA Seat
Prosperity For All Through Entrepreneurship
ENTERPRISE OPPORTUNITY
Program Characteristics
 Most MEDs non-profits
 Many are Free Standing
 Many are projects of larger organizations:
CDCs, Community Action Agencies,
Housing Corporations, CDFIs, Credit
Unions, etc.
Prosperity For All Through Entrepreneurship
ENTERPRISE OPPORTUNITY
Services
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Lending
Training
Access to Markets
Individualized Technical Assistance
Mentoring
Financial Literacy and IDAs
Computer Literacy
Access to internet
Prosperity For All Through Entrepreneurship
ENTERPRISE OPPORTUNITY
Lending Programs
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Peer and Individual Lending
Average loan size $8 – 10,000
Stepped loans becoming more common
Wide variety of loan products
Credit Builder loans
Character based
Credit Scores as low as 500-550
Ability Fund: Entry point for persons with
disabilities
Prosperity For All Through Entrepreneurship
ENTERPRISE OPPORTUNITY
Who We are Serving*
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61% Women
50% Minority
60% Low to Moderate Income
30% At or below Poverty Level
11% TANF recipients
*Aspen Institute
Prosperity For All Through Entrepreneurship
ENTERPRISE OPPORTUNITY
Study of 813 Program Clients
Three year study
 651 businesses created
 Employed 953 people
 Existing business owners reported 26%
increase in revenue at end of period
 560 of the businesses studied reported
total revenues of $43,844,178
Movement out of poverty 36-42% in
programs targeting women
Prosperity For All Through Entrepreneurship
ENTERPRISE OPPORTUNITY
Association for Enterprise
Opportunity
1601 North Kent Street
Suite 1101
Arlington, Virginia 22209
703.841.7760
www.microenterpriseworks.org
Prosperity for All Through
Entrepreneurship
Prosperity For All Through Entrepreneurship