Improving Our Community through Microenterprise Development
Microenterprises=Good Business
Small businesses make up over 86% of all Oregon and Washington businesses. These microenterprises generally have five or fewer employees. They face unique challenges and are denied access to conventional lending due to a lack of operating history, credit, or collateral.
Most microenterprises are sole proprietorships, creating employment for the owner and often other family members. They are often our neighborhood “mom and pop” businesses.
Nationally microenterprises represent the vast majority of all US. businesses. These microenterprises added between 4.5 and 5 million new jobs between 2000-2005. In 2002, following the 2001 recession, microenterprises still created close to 1 million new jobs.
An Opportunity at Hand
Statistically over 90% of all existing US microenterprises are not well served. They lack what they need to help them thrive—funding and business expertise. This is a missed opportunity for everyone. When small businesses flourish, we all benefit.
- New local services and products
- Graduation from public assistance
- Progress out of a poverty income
- Sustained self-employment
- Job creation and retention
- Stronger tax base
MCNW Helps Small-Business Prosper
For a business to benefit its owner and community, it has to do more than just start—it has to stay. Two years after receiving MCNW services, 91% of our clients remain in business, according to MicroTest results.* Of all MCNW borrowers, nearly half need a loan to launch a new business.
To prosper, a business also has increase income over time to support the owner and even hire employees. Of those in business 18 months after receiving MCNW services, the median household income had increased 37%. On average, the increase in actual household income was $6,697.
More Than Loans and Savings Grants—
“We provide a basket of resources, including business planning classes, one-on-one advisory services, and options for business service referrals,” says Oregon Loan Officer Brian Fassett.
In the last fiscal year, MCNW served 710 individuals who were starting or growing their businesses. Several thousand more accessed services through our online resources.
Mercy Corps Northwest benefits our local economy by increasing the household income of local entrepreneurs and their business survival rate. These stable, new businesses add new products, jobs, revenue and services to our community .
