The Impact of Microenterprise Development Training on Low-Income Clients
This issue of the Journal of Extension examines the impact of microenterprise development (MED) training on low-income individuals using a case study of Vermont Micro Business Development Program’s (MBDP) 140 clients, who participated in a statewide telephone survey.
The study examined the overall MBDP program impacts and the relationship between client demographics and outcomes achieved, with a specific focus on change in reliance on public assistance.
The journal states that:
- MBDP programs in Vermont educate low- to moderate-income individuals on how to start and run a business by providing them with the following services:
- Technical assistance;
- Individual counseling;
- Continuous post-start-up support;
- Classroom training;
- Loan packaging services;
- Referrals to outside resources.
- These services provide a foundation for clients to build skills that help them start a business and gain the resources necessary to be successful entrepreneurs.
The journal discusses:
- Reasons why the low-income people seek self-employment and MED services;
- The MED philosophy.
The study profiles the following outcomes of the MBDP program:
- Access to capital;
- Positive attitude changes;
- Business start up and growth;
- Job creation;
- Increased household income;
- Decreased reliance on public assistance;
- Satisfaction with services.
The journal concludes that the findings of the study support similar research that MED programs contribute to rural economic sustainability and development through the establishment and support of microenterprises and their employees.
