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Study: Micro biz important to economy

Microenterprises play a powerful role in helping the American economy recover, according to a study released by the Association for Enterprise Opportunity (AEO). The report, funded by the Citi Foundation and entitled, “The Power of One in Three,” indicate that if one in three microenterprises hired just one employee, the U.S. economy would reach full employment.

“The Power of One in Three” study argues that “focusing on Main Street businesses is a high-impact, less risky path than simply betting on the next new, VC-backed game-changing innovation.”

The report also found:

  • The median net worth of business owners is almost 2.5 times higher than non-business owners. For a black woman, the difference is more than 10 times; for a Latino man, the difference is 5 times.
  • A $5K increase in revenues per micro business per year would generate more than $20B. That’s less than $500 in additional sales per month per business.
  • Micro businesses could connect to international trade routes. A 1% share of micro business imports to developing countries would be worth $37B USD.

To download the report, go to www.aeoworks.org/pdf/one_in_three.pdf.


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