about microenterprise

In the United States, a microenterprise is usually defined as a business with five or fewer employees, small enough to require initial capital of $35,000 or less; the average microloan is about $7000.

According to the Association for Enterprise Opportunity, there are more than 24 million microenterprises in the U.S., representing 18% of all private employment and 87% of all businesses. One out of six U.S. private sector employees works for a microenterprise. Historically, microenterprises have been considered the backbone of the U.S. economy.

Most microenterprises are sole proprietorships, which create employment for the owner and, often, other family members; they are commonly called "mom and pop" businesses. Some grow into large enterprises employing other members of the community. Microenterprises include a variety of businesses in the products and service sectors such as repair and cleaning services, specialty foods, jewelry, arts and crafts, gifts, clothing and textiles, computer technology, child care, and environmental products.