Abstract:
Microfinance is dedicated to the provision of financial services to low-income
individuals including women, minorities, disabled individuals and vocational
rehabilitation clients, among others. Since the 1980s, Microenterprise Development
Programs (MDP) in the United States have provided a variety of microfinance services to
many low-income urban and, primarily, rural individuals across the country to own or
sustain their very small business, also called a microenterprise. Oregon is, remarkably, a
microenterprise state. Businesses with fewer than five employees are responsible for 18%
of the overall employment in the state, and microenterprises have experienced important
growth in recent years. Through the use of a focus group and a series of in-depth
interviews, this study analyzes the self-reported experiences of 25 former clients of Lane
MicroBusiness (LMB), a MDP located in Eugene, Oregon.
Findings suggest that, after obtaining services provided by LMB, respondents
agree these services helped start, sustain or grow their business. The services provided
are a step up the ladder that helps to, potentially, overcome income stability and
eventually creates a path to success. Some of the benefits experienced include: increased
knowledge, business plan creation, increased profits, as well as higher self-esteem and
stability. On the other hand, some of the challenges faced include: lack of time,
dissatisfaction with training and grant accessibility. In addition, an overwhelming
majority of the participants did experience a â business outcomeâ , created an â income
patching effectâ and showed an interest to increase social capital and group interaction
while desiring an increase in one-on-one interactions with LMB staff.
