The Law According To MosesTM
Microenterprises Are Key To Wealth Creation
By Ambrose Moses, III
Microenterprises provide minorities, women, veterans, and low and moderate income individuals an opportunity to start businesses and increase wealth in both their households and their communities. The numbers are strong.
A microenterprise is a small business with five or fewer employees with initial capital needs under $35,000. Now, there is a growing trend to also include businesses with up to 9 or 10 employees and initial capital needs under $50,000 as micro.
These businesses are often called “Main Street” businesses. They represent 88% of all businesses in the U.S. In other words, nearly nine out of 10 businesses are microenterprise, and that’s about 25 million businesses.
Nearly 21 percent of the U.S. population is employed by a microenterprise. Specifically, 25% in rural areas and 20% in urban areas, is provided by microenterprises.
In Ohio, there are 823,000 microenterprises. This represents approximately 86% of all businesses in the state.
So, why are microenterprises so important? For the business owner, it’s a way to use their talent for productive use and create a livelihood for themselves and their families. In addition, they’re able to create employment for other members of the community. Microenterprise development also promotes local ownership. It can lead to greater community wealth as well as individual wealth.
For Americans who do not own a business, in general, their net worth is $85,000. African Americans who do not own a business have a net worth of $10,000. Hispanic and Latino American non-business owners have a net worth of $9,000. Women non-business owners have a net worth of $82,000.
For Americans who do own a business the numbers are significantly stronger. In general, their net worth is $211,000. African American business owners have a net worth of $77,000. Hispanic and Latino American business owners have a net worth of $37,000. And, women business owners have a net worth of $180,000.
Clearly, there are some issues concerning wealth disparity that need to be discussed and addressed. The first step is to get in the game.
Because of the smaller inputs needed to start a microenterprise, such as a smaller loan size or less inventory requirements, there are fewer barriers to entry into business. So, microenterprise development really is a great opportunity for minorities, women, veterans, and low and moderate income individuals to start businesses.
Ambrose Moses, III is an attorney with Moses Law Office. Email: info@MosesLaw.pro. Telephone: (614) 418-7898. CLICK HERE to Request a Call.
