Microenterprise Fact Sheet (2007)
According to US Census Bureau and US Department of Commerce there are 428,667 microenterprises
in Washington accounting for 17% of all employment in the state. These businesses fall far below the SBA size standard for small
business, defined as having 500 or fewer employees and less than 5 Million in sales.
According to Association for Enterprise Opportunity Study of Employment Statistics (MEES) Rural/Urban Breakout Three Year
Analysis, for year 2002 Washington state microbusinesses employed 75,511 rural employees and 508,846 urban employees.
There are approximately 20 microenterprise development organizations in Washington State providing business training, technical
assistance and access to credit. Businesses served include 1) Professional services 2) Retail, 3) Technology, 4) Trades, 5)
Crafts/Art, 6) Manufacturing, 7) Childcare, 8) Environmental, 9) Agriculture/Farming, and others. Most organizations are seasoned
with 5 to 10+ years experience. Average number of clients served per organization is between 125 - 300 clients annually. MDO's
historically create new business, generate jobs and advance self-sufficiency through self-employment.
Impacts
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A four year study conducted by a Washington State MDO and published by the US Department of Health and Human Services
demonstrated the impact of a microenterprise program on disadvantaged populations. Of 240 individuals served, 86 new
businesses were formed, 105 jobs were created by the new businesses and 120 individuals became self-sufficient. The
cost per job well below $8,000 and public savings in excess of $2.2 Million (based on family of 4 receiving 19,000 annually
in public assistance).
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Twenty-seven states with MDO associations have enacted legislative policy and fiscal support for training, technical assistance
and lending. Sources include general funds, CDBG, TANF, Workforce Investment Act, and Tax credits.
Statement fo Need
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Most microenterprises do not meet eligibility standards for assistance by traditional financial institutions as well as the US
Small Business Administration due to size, credit and experience.
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Most financial institutions do not lend in the capital range needed by most microenterprises, between $250 - $35,000.
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Washington currently has insufficient capacity to service this sector with twenty MDO's and over 425,000 microenterprises.
Current capacity reaches just 2,500 - 6,000 (based on average) annually.
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Current study of state MDO's indicate that they face sustainability challenges; want pooled resources; need to maximize
capacity and reach scale; need state-level funding to leverage resources.
Client Success
Shannon Goldsberry was a single mom fleeing domestic violence and seeking a new life. She attended school and became a
licensed massage practitioner. It was suggested she approached the SBA for a loan. Falling short of their eligibility criteria she
sought other resources. Finding assistance through the Center for Economic Opportunity (MDC), Shannon was able to get the
business assistance and micro loan she needed to launch her business. No longer needing public assistance, she became self-sufficient.
Nine years later she is still in business, paying taxes and contributing to our states economy.