Microenterprise has been recognized around the world as a grassroots engine for poverty alleviation and economic growth worldwide. For the increasing number of poor people, microenterprises are often a source of income and employment where no other alternatives are available. Many depend on them as the main source of family income. This has prompted significant interest and investment in microenterprise support programs over the last two decades. There is now more emphasis on this aspect of economic development as a means to pursue other social objectives. Organizations supporting microenterprise development are using variety of approaches and strategies. Experiences along this line abound, but more documentation on “lessons and best practices” is needed.
Economic challenges that many business face are magnified among the micro entrepreneurs. Alleviation of poverty requires both the generation of stronger growth and the reduction of income inequalities. Everyday thousands of enterprising growth and men strive to increase their income by maximizing the return on their labor and that of household members. Very often, however, overall skill differentials and lack of Access to business and financial support services largely contribute to inequality. Low income means low purchasing power, and, consequently, low capacity to obtain goods and services.