THE MICROENTERPRISE PROMISE: CREATING OPPORTUNITIES FOR LOWINCOME INDIVIDUALS IN EUGENE, OREGON AND ADJACENT RURAL COMMUNITIES

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.